Real estate industry

The real estate industry harnesses the power of location intelligence – Geospatial World

The real estate sector is known to be one of the essential engines of the economy of any country. The pandemic has impacted the real estate sector by causing significant changes in investment, insurance and construction models due to changing work environment and social and economic behaviors. While many industries use location analytics to improve their businesses, the real estate industry relies heavily on it to generate valuable insight into location trends and visitor and customer demographics.

In addition, he discovers the crucial opportunities for the growth of companies in the longer term; from finding ideal locations, to obtaining the best value for real estate transactions, to maximizing growth and investment opportunities.

Also Read: The Value of Location Intelligence for Retailers

Why use geolocation for the real estate sector?

Real-time demographic trends

Location intelligence not only provides granular insight into foot traffic trends, but also maps psychographic trends. It determines consumer behavior patterns as well as the types of traffic entering and leaving the surrounding area. It provides information on consumer behavior, such as the type of population attracted to a given site, their age, gender, how often they travel, etc.

Applications of location intelligence in the real estate industry

Site selection

Identifying the right location is crucial for a consumer to determine the scope of the desired site. Factors such as connectivity, profitability, presence of competitors, social and economic behavior of the population in its surrounding area govern the site selection process. Location intelligence thus helps to maximize the profitability of that location. For example, if a new branch of a hotel is to be established, it is necessary to know how much traffic is going through the site, are there any offices / colleges / schools nearby, if there are any competitors nearby, is the accessible road and much more. Location intelligence has made it easier for the real estate industry to make smart decisions based on complex data sets.

Marketing

Better demographics with valuable insights and rich airline map visualization are helpful in attracting consumers or buyers to the desired location. One of these marketing processes is hyperlocal marketing. Hyperlocal marketing is used to target potential consumers in a specific geographic area or neighborhood, analyze foot traffic trends, and capitalize on “nearby” searches, which is crucial for real estate agents to be ahead of the competition. . By focusing on a particular smaller area which may be a few blocks or a few streets, realtors are able to attract clients and provide them with the location they need.

Enrich business insights to drive growth

Understanding market demographics and spatial analysis is essential for driving growth and success. Geofencing, which is defined as a virtual perimeter generated around a location, provides information about the competitor’s site. Businesses are able to stay ahead of the competition by sending push notifications to the target audience at the right time. Location intelligence thus improves the decision-making process, mitigates risk and improves returns on investment transactions.

Also read: Importance of location intelligence in COVID-19 vaccination campaigns

Trends and directions: post-pandemic

Work at home
Source: Gartner Inc., The Conference Board

Work from home (WFH): With the real estate industry being one of the hardest hit markets due to COVID-19, the workplace has undergone a complete transformation; thus changing the needs and requirements of customers. Today, people are choosing to work from home even after the lockdown has opened in several countries as it is the most suitable option for them due to the current situation. With this trend of the WFH, people can move to the outskirts of the city for affordable housing and open spaces. Nevertheless, this culture will give rise to a new demand and a new supply.

Work at home

Impact on corporate real estate investments (CRE)

According to a study by JLL, CRE’s investment volumes fell sharply to stand at USD 321 billion, marking a drop of 29% in 2020 compared to the first half of 2019. The impact was felt worldwide due to widespread blockades and border restrictions. As a result, short-term investments were blocked. CRE’s investment volumes in the Americas, APAC and EMEA fell 37%, 32% and 13%, respectively, compared to previous years. CRE related to foot traffic from customers such as hotels, gyms and other places of recreation have shown a major slowdown or, in some cases, shutdown due to the pandemic.

Source: CBRE Research, Real Capital Analytics (Americas), Q2 2020
Source: CBRE Research, Real Capital Analytics (Americas), Q2 2020

AI and location analytics help property management
AI + Location Analytics have the ability to provide meaningful predictions involving customer needs and requirements. For example, it can predict the cost of an area based on various factors such as location, future prospects, changes, etc. It also displays analytics related to areas prone to crime, theft, disasters, hazards, or anything else a consumer would consider before buying or renting a property.

Did you find that interesting? The Location World – Real Estate The digital series, scheduled for April 22, 2021, 8:00 a.m. PDT / 4:00 p.m. in the UK, provides a platform for technology experts and practitioners to learn, share and advance the localization industry. The event will focus on the role of location intelligence in CRE investments, the evolution of the workspace environment and to discover the power of AI and location analytics in the property management.

Don’t miss it. Book your slots NOW!


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