Real estate

According to Telecom Digitalisierungsindex

52%

of the construction industry is digitalised. The level of the digitalisation index is below the average of all industries (58 of 100 points), real estate and housing (60 of 100 points) and banks / insurances (67 of 100 points).

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Platforms and portals

This technology can be used for services such as social networks, crowd models, living services and tenant applications to increase customer retention rates. Currently only 10% of companies make use of this technology according to digital real estate.

By utilising a platform, a large database of customers and customer data can be created. This is highly beneficial for any real estate business and enhances brand identity and loyalty. Leads can be better understood, information can be tracked and listings obtain a wider reach. The SaaS (Software as a Service) nature of portals allow for additional income streams that can supplement the traditional business model.

Building Information Modeling (BIM)

BIM is the process of creating and managing all the information about a project, leading to an output known as a Building Information Model, which contains digital descriptions for every aspect of the physical project. 3D models and designs are often at the core of BIM.

Digital BIM models allow for sharing, collaborating, and versioning that paper drawing sets don’t. Furthermore, time-consuming tasks of quantifying and applying costs, planning and visualisation of the entire project can be achieved. Moreover, project cycles and construction schedule setbacks can be eliminated, allowing improved scheduling and sequencing for construction companies.

Data Science

Real estate companies are investing in property evaluation technologies, which can determine if a property is a good match in terms of investment for each customer. Models that allow this have been developed by using a variety of public data and market information such as prices per square metre on past transactions, number of bedrooms and the quality of the neighbourhood.

This provides clients with much wider parameters than could be provided by a single estate agent and allows the estate agent to offer greater accuracy in their information. Huge amounts of complex data sources need to be considered, as real estate is affected by many social, political and economic factors.

Artificial Inteligence and Machine Learning

The use of artificial intelligence in real estate is proving one of the most significant disruptors of the proptech revolution. Thanks to advances in machine learning and the rapid evolution of AI, the real estate industry is discovering how to manage the massive amounts of data that buildings produce, and monitor bespoke KPIs to streamline processes and extrapolate valuable information.

AI can be used in every aspect of buying, selling and home financing. Algorithms can now go through millions of documents in seconds, looking through property values, debt levels, home renovations, and even some of a homeowner’s personal information.

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