Why are data indispensable for project development
The future-proof developer
It is obvious to all developers. The world is changing and project development is changing accordingly. Google is building the first Smart City and Amazon is taking an interest in a start-up that actually builds residences. Two data giants are the largest competitors of the real-estate sector. Meanwhile, the real-estate sector has also come to understand the importance of data. Data have become a standard for marketing and transaction processes. However, there are still plenty of opportunities that are currently being missed out on, which are essential for the developer who is ready to face the future.
Short term profit gained by data for project development
Developers can use predictive data to determine the closing fees at the time of sale for a particular type of residence with a certain quality and at a certain location. These data can then be compared with the analyses made by brokers, sales representatives and developers. Allowing developers to take better (real-estate) decisions by using data in a smarter way.
Predictive data can also help developers in respect of acquisition. Developers often search for interesting (land) positions (brownfields) in a reactive way. They succeed in finding a location themselves or happen to find one via an intermediary. However, data can help you find interesting land positions in a more proactive way. That is why Blauwhoed is entering into a cooperation with data partner Veneficus, a company that helps us achieve the above by building a predictive data model to earlier identify future redevelopment locations. For example, data can be used to analyse relocations and predict beforehand where people want to live and in what type of residence. This way, data can help your company grow, without you needing to hire more people.
The prospect facing us, is that the real-estate sector is about to change. A trend has been identified that shows that the revenue model will no longer be based on the product, but on data in the form of e.g. service platforms based on subscriptions. Take a look at Apple, who makes more profit with iTunes (platform) than with its products, such as the iPhone. I am of the opinion that the real estate sector is facing a time in which data giants like Google and Amazon are turning the real-estate world upside down. That living will become a lot cheaper and business will be focused on subscriptions and platforms based on user data. We have to develop new business models, which are supported by (user) data. It is time for developers to enter into partnerships with the right parties and to research which kinds of platform services we can offer the residents.
People are essential
However, people will continue to be essential. Artificial Intelligence doesn’t have (a gut) feeling, isn’t creative, doesn’t have a conscience and lacks empathy. People are still needed to think logically, correct the mistakes made by the system, add a touch of creativity and solve complex issues.
Together with startups like Veneficus and with data marketers, future developers can manage the changes in society. By daring to jointly think and act differently.