The emergence of covid-19 has disrupted every sector; over the past two years, every market has been obligated to re-see its functioning to survive the pandemic era. We are compelled to adapt and go towards technological means; every market has been fast adapting to technologies while the real estate market has lagged.
We should change our views on real estate investment; there are now platforms that help people buy, sell or even invest in properties with limited human contact. These are giving a new beginning to the real estate industry, as we have a new way of consuming, constantly changing.
However, any other market has been quick to adopt the shift to technology, while real estate is one among the last to change. While this change is considered to be primordial to stay relevant in the market and stay competitive, we need to understand which change you should go, as many advancements have emerged, such as Artificial Intelligence and Robotic Process Automation. Such technology advancements allow systematic and comprehensive evaluation of a broad spectrum of investments in real-time.
A.I. In Real Estate
Artificial Intelligence has substantially improved the decision-making process when it comes to asset identification and selection. A.I. platforms analyze large data sets using algorithms and machine learning to find correlations, patterns, and relationships across a wide range of parameters and variables. The asset selection process has progressed from subjective evaluation to deterministic and quantitative due to identifying such variables and analyzing their influence on multi-scenario probabilistic models. A.I. algorithms that are well-designed regularly evaluate the feasibility and effects of various parameters — this may frequently lead to substantial insight, sparking a “butterfly effect.” The butterfly effect is the theory that modest changes in a complex system can have non-linear, unforeseen consequences. A.I. may also assist in the early detection of any potential safety danger or building flaws, saving time and money.
A.I. may assist in property value by using a “predictive analysis” algorithm to calculate the rates of the property. Predictive analytic algorithms assess the likelihood of important events occurring, such as changes in the micro-demographic market’s pattern, the income distribution of persons in the area, and the projection/viability of future competitive supply, to name a few. This assists in establishing a property’s genuine intrinsic worth. Markets frequently do not reflect intrinsic value, creating a compelling opportunity to uncover assets with greater intrinsic worth than current market rates using such algorithms.
Virtual Tour Property
There are restrictions of movement, many places around the world. It becomes more and more difficult for buyers or sellers to go around and visit properties to see what they want. The visit can be done virtually, which is a big improvement.
They are done mostly via video conference, where a lot of questions are asked by the buyer, and the seller can answer these questions with videos. Buyers will be able to visit the properties without moving; thus, they can have an in-person visit if they are interested.
Robotic Process Automation
It refers to the employment of software or bots at the site to automate routine clerical tasks that do not need high-level decision-making—managing contacts and organizing signatures and approvals among many vendors, for example. Data collection on buyers and sellers, data management, and data compliance reporting are all common clerical tasks that may be automated using bots.
Real estate has been a market that didn’t know any advancement for long, but these innovations shall come to allow the market to continue flourishing. In the comments, let us know what you think about a technology-driven real estate market…