by E&N Real Estate
Incorporating technology into real estate development is currently more essential than ever. The evolution of processes means that developers must align themselves with digital innovation to optimize construction time, generate savings and achieve greater accuracy when conducting business within the construction sector.
1. Big Data
This technology adds immense value to the real estate sector as it allows buyers and investors to know more precisely in less time what, where and why to acquire or develop a property.
The data provides an increasingly comprehensive and complete view of the development that is about to take place, allowing them to make more accurate decisions based on the technology and the insights it generates. Access to real-time updated databases on property valuations, market information, and data on rental prices, services and more in certain areas of the country, making it possible to predict how profitable or not a building might be in the current area , as well as knowing the prices and the rate at which it can be marketed.
2. Artificial Intelligence
Forrester studies indicate that 80% of the world’s companies expect a significant increase in the use of Artificial Intelligence within their organization by 2024, and real estate is no stranger.
Next year, the algorithms will allow developers to forget about paperwork and turn to a technology partner that provides them with a one-stop-shop for streamlining all processes through algorithms: from credit discovery, to that Mapping of the area in which it is intended to be built, projection of the property and income from the property.
3. Digital Mapping
One of the biggest questions that developers ask is which area should I buy or build? Technology currently makes it possible to create an interactive map through solutions such as Monopoly, in which users identify different areas in detail with data on property prices, rents, estimated yields and historical capital gains of the place.
In these types of tools, you can view data by state, city, neighborhood, block, and even by property, in addition to the permitted land use in each piece of land.
4. Augmented Reality
The first impression is the most important, and what better than to make it even before the development is complete. For this, there are tools such as Monopoly, for example, which use augmented reality engines as a complement to the commercialization of real estate.
This will help developers to have a digital first approach to development in 2023. In this way, the first look and feel of the apartment takes place through a tour within a three-dimensional model, so that potential buyers can get to know the dimensions, amenities, available apartments, among other features.
5. Housing Rehabilitation
Finally, we must bear in mind that the above technology will not only be used to build new projects, but also to rehabilitate old housing, a trend that will increase this year, thanks to inflation. will arise from the contraction of the field. Material prices, which have gone up by as much as 40%, and interest rates add to the impact.
DD360 estimates that new housing construction will increase from around 25,000 units in 2020 to around 15,000 homes by 2023 and over the course of the next few years, leading to a ‘boom’ in rehabilitating old housing to make it more affordable, sustainable and affordable to buy. Sell later with a positive return.