Few would argue against the benefits Big Data can bring to business. But collecting and collating multiple data streams from disparate sources presents a unique challenge in any industry, let alone one that's traditionally been slow to embrace new technologies and is subject to constant uncertainty and fluctuation from external influences. Nowhere is that truer than in the real estate industry.
At the same time, the real estate industry is uniquely positioned to benefit from Big Data and the certainty data-driven decision making can deliver. And the advent of Covid has only increased the appetite for real estate professionals to access, process and use data in more precise and meaningful ways – and in doing so help restore confidence to property prospecting. To better understand the markets and asset classes they operate in, property developers and investors are turning to Big Data with renewed urgency. It makes sense – accurate and timely market analysis is the key to streamlining processes, enhancing productivity and avoiding expensive mistakes.
What's involved in detailed real estate market analysis?
Analyzing every aspect of the real estate market (the largest asset class in the world) to find the data relevant to a specific project is a monumental task that PropTech companies are only now beginning to get to grips with and make available in accessible and workable ways.
Traditionally, businesses have relied upon their own resources, networks and market insights to answer the big questions, or have paid for data-led surveys that age quickly (and often, badly) and can't always be relied on for accuracy, detail or geographic relevance. From location analytics to legal issues, more and more developers and investors are starting to ask targeted questions that only deep dives into multiple, real-time data sources can answer. And there's only so much one person or company can do on their own.
The scope of a comprehensive real estate market analysis can be overwhelming. At its most basic it should include:
But this comprehensive market analysis is only the first step in the process to actionable insight. Once collated, it needs to be interpreted and understood. This means data crunching and analysis – recognising the relevance of specific facts and figures and applying this contextually to specific projects. More resources are therefore required in the shape of analytics experts and data scientists, the kind of computational power that's the remit of only big corporations with the financial resources to pay for it. That, or outsourcing it to third-party specialists involving yet more time and expense.
Without a clear understanding of this crucial data, property professionals cannot make the informed decisions that will help them recognise the best development and investment opportunities. Without it they open themselves to the risks of making poor decisions that could prove costly – not only financially but also in time and resource.
Digital Twins bridge the gap between Big Data and market insight
Bringing together multiple data sources manually involves a time and resource-consuming mixture of researching online, tapping into existing and new networks, speaking to local businesses, buying market reports, trawling legal records and more – a lot of leg work that in the end may only result in the knowledge that an investment opportunity doesn't offer the potential a business needs to move forwards. Lots of work and time spent with the potential of not much return.
Creating a digital platform that can consume, collate and make sense of Big Data has undeniable value for the real estate industry.
Digital Twin technology is the route to simplifying this process by creating a digital mirror of the real world layered with the data that can quickly deliver a comprehensive and accurate market analysis without the vast investment in resource and time. Consolidating multiple data sources into one coherent digital interface, Digital Twins allow businesses to filter and correlate relevant data quickly and easily in the context of their own projects.
This is the challenge Nomoko has been working on and the result is Praedia — the first Digital Twin solution for professionals working in the real estate industry. By collating the numerous data streams needed for real estate market analysis, interpreting and automating them into clearly identifiable layers that can be easily filtered to suit specific criteria, Praedia takes Big Data and turns it into relevant information.
This brings with it several immediate benefits — it’s quicker and easier to search for and find properties that meet your investment profile, whether that’s a limited price range, specific area within a city or buildings with the development potential to add floors. It adds certainty to your decision making by qualifying estimations with vast data resources, whether that’s legal, spatial, location or market data — or all of them! And it saves time by automating processes, meaning you can assess multiple opportunities at the same time in one easy-to-use solution — all the data you need for all your projects in one place. Big Data, made easy.