Data, data, data everywhere! An increase in the use of smart and connected devices along with the increased availability of the internet has massively amplified the amount of data collected in the world. The internet is not limited to our computers, laptops, or mobile phones, rather, the world has now adopted Internet of Things (IoT) technology which integrates data-gathering sensors into almost every device or machine. Previously, such large amounts of raw data could not be effectively analyzed. However, that has changed with the introduction of Big Data Analytics. A larger more in-depth view of consumer behaviour can now be analyzed to spur innovation and growth across many industries. The real estate sector is an important part of the economy and is most often linked to large investments and the general development of society. Using Business Intelligence (BI) in real estate is not only the need of the hour, but it also has an enormous chance of improving how services are provided to buyers, sellers, and investors. Continue reading to get a better understanding of business intelligence and its role in real estate development.
What is Business Intelligence
Data exists in many different forms such as texts, numbers, images, videos, and its raw collection provides little benefit. Business intelligence is the process of converting raw data into meaningful information that drives profitable decision-making and business action (guru99, 2021). Using data mining, data visualization, data tools, and data infrastructure, a comprehensive view of an organization’s data can drive change, eliminate inefficiencies, and help in adopting future market trends. According to Stephen Bobst, CTO Teradata, a real-time enterprise without real-time business intelligence is a fast but inefficient organisation (Bestplacetoilvein, 2020).
The process requires collecting raw historical data from organisations spread across multiple heterogeneous systems. It is then cleaned and transformed to make its use more efficient. The data is organised, linked, and stored in a database that is accessible to multiple departments at once. Using query languages and database tools, data engineers can later use analytics and machine learning to gain insights from this raw data in a wide variety of different applications. This not only boosts the productivity of the organisation, but it also helps in giving a birds eye’s view of the organization’s overall trajectory, fix accountability, improve visibility, and improve efficiency. Due to a large amount of data being collected in the real estate sector, along with multiple apps being launched, business intelligence is much needed in the sector (Tableau, 2021).
How can The Real Estate Sector use Business Intelligence
Real estate markets are notorious for their unexpected ups and downs. Few can understand the drivers of change in the market as gathering and analysing data is not easy in the sector. This uncertainty often leads to investor blows, making real estate investment a risky business. There is also a strong proliferation of mobile apps offering real estate services in recent years. These apps offer to their users a database of listings and marketing of development projects to choose from. However, recently, smart real estate apps like Graana.com have increased the utility of such apps by providing verified details, investment advice, and a secure model for investment based on ownership, approvals, demand, and delivery. Such innovation requires strong business intelligence models and is indicative of the fact that companies in the real estate sector are readily adopting the methodology to improve their customer experience and satisfaction, while also helping the organisation to grow exponentially over time (Graana.com, 2021).
The amount of data that is being collected in the real estate sector is mind-boggling. From property listings to property details, land records, customer preferences, search query data, market price fluctuations, land titles, and development project details, Business Intelligence platforms analyze data and present it in forms of charts, graphs, reports, and other visualizations to easily recognize trends and trajectories. This is a huge help in the real estate sector as investors usually fear loss due to high fluctuations in the market. The practice also allows for a proactive role in identifying risks and mitigating them by creating actionable strategies. If companies use their data correctly, they can also understand how to bring in the most profitable product to the market at the correct time (Nell, 2019).
People often compare property before selling, purchasing, or investing in land. It is common that an individual will compare prices in two to three neighbourhoods before settling on a place to buy or rent. The comparisons are not limited to just price but a wide variety of different factors come into play while decision making. Bringing accurate comparisons requires data from diverse fields. However, making a relationship between such data is often a difficult and arduous task. That is where the role of business intelligence software comes in. It has the capability to analyse and join data from multiple sources, even data that is formatted differently. Many real estate websites use these models to predict loan payments on houses (Mallon, 2021).
Business Intelligence tools are also widely beneficial for agents and brokers in a real estate market. Not everyone can afford to hire a dedicated team of professionals and buy market data that is quite expensive in its own right for analytical purposes. Business intelligence tools are also available that can track prior industry performance based on historical data. By using metrics like, sales in a particular area, sellers can set a reasonable demand for their property, thereby ensuring that the property gets sold on a timely basis. An interesting feature in this regard is the setting up of lifestyle key performance indicators (KPIs). As agents cannot personally tell how every neighbourhood experience would be like, lifestyle KPIs can be used to predict such factors and make a more fulfilling purchase. Therefore, the opportunities for business intelligence in the real estate sector are as open as one’s imagination (Clavax, 2019).
The real estate sector is complex. The data circulating within the sector is more so. However, this does not mean that the data is not useful or cannot be used effectively to make the sector more sustainable and user-friendly. Data often carries missed opportunities when not interpreted fully or accurately. Business intelligence is, therefore, a vital process that can provide useful insights into future market trends. It also makes the sale and purchase of property easier and provides for a better consumer experience in the mobile app world. Therefore, business intelligence can be used to revolutionize the real estate sector of Pakistan.
Bestplacetoilvein. (2020). What Is Business Intelligence And Analytics? Retrieved from https://bestplacetoliveinus.com/what-is-business-intelligence-and-analytics/
Clavax. (2019). How Business Intelligence is Affecting the Real Estate Industry? Retrieved from https://www.clavax.com/blog/how-business-intelligence-is-affecting-the-real-estate-industry
Graana.com. (2021). Graana.com. Retrieved from https://www.graana.com/
guru99. (2021). What is Business Intelligence? Definition & Example. Retrieved from https://www.guru99.com/business-intelligence-definition-example.html
Mallon, S. (2021). How Business Intelligence is Making Real Estate Easier. Retrieved from https://www.smartdatacollective.com/how-business-intelligence-making-real-estate-easier/
Nell, G. (2019). Why Does Commercial Real Estate Need Business Intelligence? Retrieved from https://www.vts.com/blog/what-is-business-intelligence-why-does-commercial-real-estate-need
Tableau. (2021). What is business intelligence? Your guide to BI and why it matters. Retrieved from https://www.tableau.com/learn/articles/business-intelligence
1. What is Business Intelligence?
2. How can Business Intelligence impact the Real Estate sector?
An increase in the use of smart and connected devices along with the increased availability of the internet has massively amplified the amount of data collected in the world.
Previously, such enormous amounts of raw data could not be effectively analyzed. However, that has changed with the introduction of Big Data Analytics. A larger more in-depth view of consumer behaviour can now be analyzed to spur innovation and growth across many industries.
Using Business Intelligence (BI) in real estate is not only the need of the hour, but it also has an enormous chance of improving how services are provided to buyers, sellers, and investors.
Business intelligence is the process of converting raw data into meaningful information that drives profitable decision-making and business action.
Using data mining, data visualization, data tools, and infrastructure, a comprehensive view of any organization’s data can drive change, eliminate inefficiencies, and help in adopting the business to future market trends.
Smart real estate apps like Graana.com have increased the utility of such apps by providing verified details, investment advice, and a secure model for investment based on ownership, approvals, demand, and delivery.
Business intelligence provides useful insights into future market trends.