Yesterday, the value of real estate was all in the location. Tomorrow, it will be information, and how real estate brokers and agents can tap into that information to build relationships with customers, increase sales, and strengthen tenant engagements
The Internet of Things (IoT) is already having a significant impact on the real estate industry. Conceptually, the IoT implies physical objects being able to utilize the Internet backbone to communicate data about their condition, position, or other attributes. Adapting this for the real estate industry, it may be most relevant to understand how various types of sensors can track features such as motion, air pressure, light, temperature, and water flow and thenówith the Internet backboneóenable the BMS to autonomously sense, communicate, analyse, and act or react to people or other machines in a non intrusive manner. Using such sensors, the IoT promises to turn any object into a source of information about that object and its environment.
At 3E, we make this possible through our mobile application platform for IOT enabled data capture and information analysis. Using beacon technology which is increasingly gaining traction in the domain, and has changed the way house hunting is done.
Buyers on their mobile devices can access real-time property listings based on their current location or targeted locations of interest, and request specific property data to be sent to them. The data collected through Beacon sensors located virtually anywhere on the property premises transmit the information to the userís mobile devices.
Tying into local municipal data also makes available to potential home buyers contextual information such as weather conditions, traffic situation, ambient noise, and dust levels in a neighbourhood, through a period of a year which helps in the process of informed decision making. This gives homebuyers a truly enhanced and immersive experience, giving buyers more power than ever before. It also has the added advantage of taking the sales pressure off agents and sellers, and instead promoting a more exploratory approach to purchasing.
Using beacon technology along with augmented reality has also enabled house hunters to go through a virtually tour model homes on their mobile device, to access floor plans, 360 degree views and energy efficiency ratings before locking down on a purchase.
A major shift observed in real estate consumer preferences shows that the transfer of decision making power has passed from the baby boomers to the millennials. This Gen Y, is driven by a rent-by-choice culture, and seeks investment opportunities in real estate early, driving technology initiatives in the space.
IOT is also being applied to significant value in the commercial real estate segment. Fierce competition and changing consumption patterns in the commercial space requirement is forcing agencies to look into innovative methods to predict space demand. A classic example is the retail sector where the need for physical shop space has drastically reduced in the recent years due to online sales cycles. Forecasts for this industry expect 50% of American malls to close by the year 2030.
IOT can play a significant role which not only acts as a differentiator, but also predicts demands, tracks consumption and behavioural patterns, and works towards identifying newer ways to attract and retain tenants.
Other possibilities include enhanced building performance through IoT enabled BMS; which can be used to reduce energy use, repair and maintenance, and administrative costs. For instance, property owners can use the data collected by motion and occupancy sensors at a building level to regulate air-conditioning and lighting in real time, thereby reducing energy costs and optimizing the internal environment for its intended purpose
With where IoT and related technology stands today, it is not a question of chasing the technology but, rather, using an existing strategy to determine what a company needs: increased efficiency, greater differentiation, or new sources of revenue.
That need, in turn, determines the type of IoT application that would be most beneficial. Contact us to find out more about how IoT can be used to enhance your real estate business.
About 3E IT Solutions
3E IT Solutions has been a leading provider of business enabler IT solutions in mobile, immersive experiences and cloud based product engineering for the past decade. With 10 years of experience and a team of 50+, 3E has built successful relationships with enterprises and start-ups alike, across various industry verticals, including Real Estate, Healthcare, Retail and Financial Services.