DATA, TECH & AI

The Effects On Real Estate

#HelloLifestyle

by Renate Engelbrecht Images: Supplied

AS WITH EVERYTHING ELSE, ONE CAN’T HELP BUT WONDER WHAT THE EFFECTS OF AI, DATA AND TECHNOLOGY ARE ON THE REAL ESTATE ENVIRONMENT

Yael Geffen, the CEO of Lew Geffen Sotheby’s International Realty says: “…Proptech is essentially the implementation of technology to streamline processes and make transactions more efficient, whether it intersects the planning, building, management or even demolition stages. What started as a trickle with the introduction of online search portals a decade ago, has become a wave of disruptive solutions and cutting-edge technologies that have steadily been transforming the way in which we conduct business.”

Online marketing and search engines like Property 24 have created an era of time-saving convenience in the filtering process, with certain properties being removed from the equation by choosing criteria like size, location and price. Ultimately, this has made house hunting much easier.

There are selected technologies that have been accelerating in the industry rapidly. Wayne Berger, Managing Partner of iShack Ventures and a PropTech Venture Builder, says several of these technologies are already influencing the industry to varying degrees, with a number of key emergent trends that are likely to have a significant impact within the next few years. According to him, property professionals should gear themselves up for some exciting game changes soon to take shape.

Data Is Key

Geffen says in essence the real estate industry is data-driven, which is why it is important to focus more energy on collecting and analysing all the data relating to a real estate business. This can be converted into valuable business case studies, offering management insights to make better decisions and action informed strategic moves. “More in-depth, clearer insights on pricing, residential and commercial trends and buyer demographics, as well as the potential value of neighbourhoods, is invaluable,” he says.

Artificial Intelligence

Computers that can learn without explicitly being programmed, can only be an incredible tool in real estate, especially when it comes to property investment and sales decisions. It can assist in organising available data in such a way that one can pick up past and future trends, as well as factors that can influence the immovable asset investment over a specific period.

Internet Of Things

According to Geffen, Internet of Things (IoT) applications in real estate will change both the industry and also our lives in multiple ways. “Predictive technology is already making buying, owning and selling homes more accessible than ever and not only will IoT help homeowners become more aware of their home’s functionalities; it can also generate more market value for your home.” For example, smartphones can connect to a building’s network to assist users in populated buildings to best navigate and optimise their routes, like finding parking or open boardrooms.

Blockchain

Described as a digital ledger stored on a distributed network, blockchain can be very exciting from a real estate perspective as it can increase transparency and improve pre-purchase due diligence. It can also speed up the transfer process, as no thirdparty verification is required. Blockchain will evidently remove the requirement to do title deed searches or a middleman to secure the title transfer – one of the primary frustrations in global real estate markets. Geffen says: “We are beginning to realise that blockchain systems are capable of streamlining all aspects of real estate sales – from listings and auctions to settlement and transfer.”

In addition to these game changers, things like 3D printing and modular construction, as well as autonomous vehicles and drones also have an innings in transforming real estate as we know it. 3D printing is already making its mark internationally and many believe that it will soon be introduced in the local property market as a low-cost housing alternative. Yes, a home can actually be printed and erected in 24 hours at a cost of about $4000 now! “As the challenge of affordability continues to grow with first-time buyers increasingly struggling to enter the market, we expected the modular home, including those made from shipping containers and those constructed using cutting-edge technology, to become increasingly appealing over the coming decade.”

Furthermore, driverless cars will mean less demand for parking space, ultimately creating space for retail and storage. And, Amazon’s Flying warehouse (Prime Air) which is still being developed will also have a great impact, especially on the industrial sector. Drones are increasingly being used for aerial footage of properties, for identification of maintenance issues and hardto-reach places, as well as security enhancement.

These fast-evolving technologies are bound to reshape the real estate environment over the next couple of years. So, brace yourself and enjoy the ride! H Q @lewgeffensothebysrealty