Written by Sree Sreenivasan, CNN
Data points and projections are reshaping real estate, as more cities work to close the information gap between locations and potential occupants.
According to a survey by data firm Crunchbase, 63% of property analysts believe data will drive real estate trends over the next five years.
Data is being used to assess development in Australia, and, in Europe, it has been employed to assess the financial viability of each project. Property decision makers in the United States are developing more advanced metrics and price-based models for evaluating properties.
Real estate analytics from the last five years helped Perth work out how to develop its rail network, enabling construction to get underway in July 2016, according to London-based international real estate adviser CBRE Group, Inc.
A streetcar route linkages the old docklands area in downtown Sydney with the business center in the NSW Central Business District Credit: Mark Pettinger
“A new approach to data mining is bringing together a wealth of real estate data and insights through open-data formats,” said Mike Barry, chief data officer at CBRE. “The ability to draw on different perspectives and models is unlocking previously unachievable data and delivering unprecedented insight into the trends shaping real estate and its future.”
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This is just one example of real estate using big data to improve data-driven decisions that shape decisions at every stage of the supply chain, from acquisition to investment to operating costs.
Data is also transforming how the complex world of governance operates. Though institutions have adopted some of the most sophisticated data analytics tools, there remains significant resistance to changing ingrained practices, say data experts.
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Recruitment experts say that successful candidates aren’t being matched with companies based on data analytics or technology, but for their personalities. Indeed, many economic commentators now see the USA being overtaken by the Asian economies as China, and also India, become more technologically advanced and competitive.