Internet Technology in Real

Estate
Lesson 1
Technology and its impact on the real
estate industry
The real estate tech sector is slowly being redefined by ever-changing
market conditions and shifts in consumer behaviors. As Peter Williams,
CEO Deloitte Digital, said “Real estate agents will not be replaced by
technology but by agents with technology”. The real estate industry will
not be replaced by a single technological solution, but rather the
changes in the industry will be enabled by technology and the leaders
will be those that embrace it. The solution will not be found in the
acquisition of hardware but in the adoption of innovative solutions that
will largely be software solutions, applications and platforms.
Some of the key areas to focus on estate
tech companies:
• Big Data - From driving business decisions to creating better consumer
experiences, big data can have a lot of influence on your business. Many
real estate businesses collect a lot of data that sit in silo repositories
without any analytics being done to pick out industry trends or behaviors
of their consumers. 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. Real estate
companies like Bowery, Enertiv, Coldwell Banker amongst others are
harnessing the power of big data to be able to target their clients with the
right products and position their products in the most effective manner.
Some of the key areas to focus on estate
tech companies:
• Machine Learning and Artificial Intelligence: Artificial Intelligence (AI) and
Machine Learning is the art of computers teaching themselves on how to
improve the way they perform their tasks based on previous experience or
through pattern recognition. Such systems are in use by real estate
investors to effectively control expenses, manage risks and gain higher
returns using algorithms that are designed to predict and factor in
individual investor concerns. Real estate search analytics is improving the
way prospective buyers are matched with desirable properties, amplifying
the broker’s labor.
Some of the AI tools in use include chatbots to automate answering of
frequently asked questions, investor analytics that sets income and growth
goals and monitors through an intelligent robot as well as loan default
predictors that are able to access risk and focus on profitable investments
only.
Some of the key areas to focus on estate
tech companies:
• The Internet of Things: The Internet of Things (IoT) is a key component of
home automation and smart homes. This involves automating the ability to
control items around the house from curtains to electricity with a hand-
held device or voice command. Smart home technology has started
changing the way home-owners view property. It is becoming a game
changer for real estate developers in Kenya. Instead of selling a shell for a
house, developers are enticing buyers with internet ready homes. It is also
anticipated that there will come a point when real estate agents use IoT for
home searches. The practice of consumers going online and pecking their
way to their perfect home will be replaced with voice-driven applications
embedded on phones, that are able to automatically answer any questions
they have.
Some of the key areas to focus on estate
tech companies:
• 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 houses. The areas of focus include using prefab building
material and modular construction where a building is constructed
offsite and then assembled onsite. In 2014 Winsun, a company based
in China pioneered a 3D printed house. Compared with the traditional
construction methods, they were able to save up on 80% of the
construction costs and 60% on labour. This are just a few of the
innovative ideas that real estate companies are exploring globally in
order to reduce cost.
Some of the key areas to focus on estate
tech companies:
• Augmented and Virtual Reality: Virtual Reality (VR) enables
customers to tour predevelopment or ready house units from
anywhere in the world. 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. Companies like BlackRhino
VR in Kenya are commercializing the potential that VR holds in selling
property developments both off-the-plan and finished. Through the
power of virtual reality, they allow prospective buyers to walk through
and experience the space even before construction has started.
Some of the key areas to focus on estate
tech companies:
• Real Estate Operations Automation: To remain competitive, real
estate companies have to look out for better ways to increase
efficiency, differentiate and position their products and services as
they build customer loyalty. With a robust back-office operation, the
company can have visibility of a customer life-cycle from the time
they were prospects till when they become landlords or tenants.
Automating your customer relationship management, portfolio
management and facilities management, the companies are able to
address challenges such as cost efficiency and communication
between different stakeholders.
Some of the key areas to focus on estate
tech companies:
• Real Estate on Demand: This is a concept where potential buyers are
able to access and extract value from their products and services
instantly. Consumers are notoriously impatient and expect instant
gratification hence demand instant delivery for the goods and
services they use. Companies like Amazon, Google, Jumia and Kilimall
have already invested in same-day delivery, that is already
revolutionizing the supply and distribution networks. In Real Estate,
startup companies such as Naked Apartments, AgentPair, and
CurbСall are setting the pace. With their technology, they are able to
connect potential buyers who want to prospect a home, with nearby
real estate agents who are ready to take a new lead.
Some of the key areas to focus on estate
tech companies:
• Real Estate on Demand: This is a concept where potential buyers are
able to access and extract value from their products and services
instantly. Consumers are notoriously impatient and expect instant
gratification hence demand instant delivery for the goods and
services they use. Companies like Amazon, Google, Jumia and Kilimall
have already invested in same-day delivery, that is already
revolutionizing the supply and distribution networks. In Real Estate,
startup companies such as Naked Apartments, AgentPair, and
CurbСall are setting the pace. With their technology, they are able to
connect potential buyers who want to prospect a home, with nearby
real estate agents who are ready to take a new lead.
As real estate tech evolves, it's certain that the industry is headed for a
revolution. Real estate tech companies won't necessarily disrupt the
industry but will disrupt those companies that refuse to embrace the
change.
Here are the ways in which one can embrace
technology:
1. Automate your back-office operations. This will enable you to collect
data about your clients. There are simple customer relationship
management and property management tools that you can subscribe too
and start using immediately.
2. As you collect more data, invest in business analytics that will pick out
trends in your consumer behaviour. This in return enables you to target
the client with the right products and services and reduce marketing
efforts to the wrong market segment.
3. Invest in technologies that make it easier for your potential investors to
make decisions about which of your properties to invest in e.g. Real
Estate Simulators as well as those that differentiate your properties from
the traditional four-wall houses e.g. Smart Home solutions.
GRADING SYSTEM
• Activities, Quiz and Assignments – 50
• Exam – 40
• Attendance – 10
• Total – 100
Thank you!