The Real Estate industry is among the most prominent industries in the modern capitalist society. It has always been one of the robust ones given the value that real estate holds for the people. The real estate industry is also evolving with new technological innovations around. Commercial real estate is all about thriving on technological innovations. Data is the most important fuel for businesses in contemporary.
It helps them to obtain valuable insights into the business and plan for challenges that might arise in the future.The commercial real estate industry is also looking forward to leverage data and make prudent decisions. Finance and accounting for the real estate industry can get very complex. To comprehend to ease these complexities, players in the real estate industry can focus on some of the most valuable technological innovations. Let’s delve deeper and explore how these technologies help the real estate sector, especially for finance and accounting.
Predictive Analytics
The predictive analytics model uses a wide range of statistical techniques including data mining, machine learning, predictive modelling, etc. to analyze the historical and present data and makes predictions. It is a part of advanced analytics that is used to predict uncertain events and reduce any causality for the business. Players in the real estate industry can use predictive analytics to make an accurate forecast of the future and plan their business strategies accordingly.
The predictive analytics tools use complex machine learning algorithms and artificial intelligence-driven models to make predictions regarding future market conditions. Now to facilitate all this, predictive analytics requires tons of data to analyze various scenarios and learn about the behaviour, patterns and trends. This learning by the machine is applied to real case scenarios by feeding the present variables that are required to make accurate predictions.
To make it more clear for you, let’s take the pricing model of Uber that uses predictive analytics. So you might have observed the price fluctuations at different hours of the day. This happens because Uber’s dynamic pricing model uses a combination of predictive analytics and real-time data to show the actual price at a particular time given the demand and supply of cab services in that area.
Similarly, predictive analytics can be used in the real-estate sector by integrating some of the most common variables like construction rates, inflation, location, etc. into an algorithmic model to accurately predict the value of a real estate in future. This will help businesses to make more informed decisions. In addition to this, equipment predictive analytic tools can be used in construction to help lower repair and maintenance cost. This can be done by evaluation of the historical financial data for repair and maintenance.
Internet of Things (IoT)
If you look around yourself, you’ll be amazed to see the number of data points and smart devices that are being used. The Internet of Things can be understood as a giant network of interconnected technological objects that can collect and send data using a wireless network without any human intervention. The digital machines have a unique identification number that helps to determine the origin and source of data.
IoT technology is being largely used by businesses to obtain real-time data that can be analyzed and used for desirable results.This application also applies to the realestate industry that is increasingly relying on the use of data for making business decisions. IoT also helps the real estate sector in the construction of property through on-site management, material deliveries, etc. This is the most eminent benefit of IoT for real estate but it isn’t just limited to this.
Other applications include onsite building management, monitoring energy consumption, property security, etc. This improved communication and transparency helps tenants a great deal and also streamline operations those results in cost saving on account of efficiency. Accounting is also simpler with quick, automated, real-time information that helps to accurately report the numbers. It is highly beneficial for management accounting.
Business Intelligence
Business Intelligence is all about leveraging innovative technology and tools to make sense of the data accumulated. It’s all about transforming data into actionable insights that can help businesses to make sense of numbers put forward. It is frequently used to automate key processes and save resources to be utilized efficiently elsewhere.
It can also help to automate accounting processes that are repetitive in nature. It is used to process complex data that could’ve been misinterpreted by human intelligence, thus eliminating the chance of random human error. It also helps to reduce the vacancy rate for properties with automation and real-time updates.
