The property industry doesn’t – or rather: It doesn’t yet. At least this is suggested by a study according to which the industry’s representatives who were interviewed show certain reservations with respect to the concept of mass data evaluation.
Big data is what data is called, which is too complex, differs too much or changes too fast for it to be processed using conventional methods. In a broader sense big data also includes all those processes with which such extensive collections of data can be evaluated. The data can basically originate from any source. There has been a certain hype about this topic lately.
Full Use of Big Data not Until Six Years From Now
According to a study by the Competence Center Process Management Real Estate (CC PMRE) the experts interviewed expect little influence of big data on the property industry and only a gradual change of their business models. People working in the property industry mainly see potential providers of data sets outside their own industry, funds and portfolio owners are considered to be among those who benefit the most of such data. The respondents think, however, that it will take more than six years until big data can be fully used.
Property experts expect the greatest advantages of mass data in the areas of strategy development, improvement of purchase decisions and lower management costs. The respondents estimate the investments required to implement a big data concept in their own companies to amount to an average of Euro 1 million.
Big Data Just a Marketing Gimmick of the IT Industry?
There seem to be only two types of data sets in which the property experts are really interested. Market rents and purchase prices of properties. The authors of the study point out that this statement is in stark contradiction to the current euphoria about big data and does not quite fit in with the previously expressed willingness of the property managers to make big investments in the implementation of big data either.
So the property industry is in a kind of limbo. On the one hand big data is praised as a cure to facilitate strategic decisions, on the other hand many see it as a marketing gimmick of the IT industry. The most frequent arguments mentioned for the distrust are insufficient data standards or the lack of technical possibilities. The authors of the study say that before the property industry starts thinking about the questions it wants to be answered, it will be impossible to say whether big data can help.
The digital transformation is one of the topics at EXPO REAL
This year the Real Estate Innovation Network (REIN) will premiere at EXPO REAL. This forum is intended to create a network of international startups, tech companies and the real estate industry.
Read more about the background on pur blog: Startups and technology companies on board.
You also find information on REIN on the EXPO REAL website.
Direct link to the REIN network: http://rein.network/