How technology can boost real estate

The real estate industry will not be replaced by one technological solution, but rather, the changes will be enabled by technology,

PHOTO| FILE| NATION MEDIA GROUP

What you need to know:

  • Real estate companies wanting to target the right clients need to know who they are, when they want to buy, where they are, and how they can reach them in the most effective manner.
  • Harnessing big data is an invaluable tool in targeting the right buyers and an important element in refining the real estate process, he adds.  

Real estate technology  is being redefined by the ever-changing market conditions and shifts in consumer behaviour.

As Peter Williams, the  CEO Deloitte Digital, says, “Real estate agents will not be replaced by technology, but by agents with technology”.

The real estate industry will not be replaced by one technological solution, but rather, the changes will be enabled by technology, and the leaders will be those who embrace it.

And the solution will be in  the adoption of innovative solutions, mostly software, applications and platforms.

The local real estate industry continues to expand as investor appetite grows alongside the customer base.

“While this is happening, change is inevitable for any real estate company that wants to remain competitive. The shift towards real estate technology cannot be ignored anymore,” says Mr Daniel Mainye, business manager at Cytonn Technologies.

As the industry evolves, individual companies will fight to be the leader by offering solutions such as renewable energy and smart homes  in order to ensure customer loyalty.

And emerging real estate tech companies are creating an opportunity to become leaders. Kenyan real estate tech companies  can focus on the following areas:

DATA

From driving business decisions to creating better consumer experiences,  data can greatly  influence on your business. “Unfortunately, many real estate businesses collect a lot of data that they don’t analyse to pick out industry trends or the behaviour of their consumers,” says Mr Mainye.

Real estate companies wanting to target the right clients need to know who they are, when they want to buy, where they are, and how they can reach them in the most effective manner.

Harnessing big data is an invaluable tool in targeting the right buyers and an important element in refining the real estate process, he adds.  

MACHINE LEARNING AND AI

Artificial Intelligence (AI) and mMachine learning is the art of computers teaching themselves  how to improve the way they perform their tasks, based on previous experience or through pattern recognition, he shares.

Such systems are used by real estate investors to  control expenses, manage risks and gain higher returns using algorithms  designed to predict and factor in individual concerns.

Real estate search analytics is improving the way prospective buyers are matched with desirable properties.

AI tools in use include chatbots to automate answers to frequently asked questions, investor analytics that set income and growth goals and monitors through an intelligent robot, as well as loan default predictors. 

THE INTERNET OF THINGS

The Internet of Things (IoT) involves automating the ability to control items around the house.

“Smart home technology has started changing the way home owners view property. It is becoming a game changer for real estate developers in Kenya,” Mr Mainye notes. Instead of selling a shell of a house, developers are enticing buyers with Internet-ready homes.

BUILDING TECHNOLOGY

With the increased demand for low-cost housing with less impact on the environment, real estate developers in Kenya are left with no choice but to consider innovative ways of building.

The areas of focus include using prefab material and modular construction, where a building is constructed offsite and then assembled onsite.

AUTOMATION

To remain competitive, real estate companies have to look  for better ways to increase efficiency, differentiate and position their products and services. With a robust back-office operation, the company can have a comprehensive record of   a customer’s life cycle.

Mr Mainye says that automating operations gives companies the time to focus on challenges such as cost-efficiency and communication between different stakeholders.

AUGMENTED AND VIRTUAL REALITY

Virtual Reality (VR) enables customers to tour predevelopment or ready houses from anywhere in the world, says Mr Mainye.

Real estate developers, hoteliers and other businesses are using the technology to give their prospective clients a feel of the product virtually.

“Using real-time technology and devices, like the Samsung Gear VR Virtual Reality headset, real estate developers can show off the progress of the houses under development as well as completed units,” Mr Mainye notes.