Today, the real estate industry confronts many challenges such as volatility of the capital market, rising expenses due to private and public indebtedness, demand on affordable housing, the infrastructure crisis, and above all these the coronavirus with the restrictions it caused.
While the state-of-art real estate technology can greatly ease the lives of building owners, tenants, and real estate agents, by providing them with effective building maintenance, predictive analytics. IoT for Real Estate technology can even further contribute to low down operational costs, improve productivity, and due to real-time surveillance tighten security.
Especially in large sites, such as industrial zones, office parks, shopping malls, airports or seaports, IoT can help reduce the cost of energy, spatial management and build ing maintenance by up to 30 percent.”Bettina Tratz-Ryan, research vice president at Gartner Inc
Capturing Value from Real Estate Technology
Internet of Things (IoT) is a cutting-edge technology that, with the help of IoT sensors, connects various physical objects located on real estate properties, providing users with an interconnected way to gather information that allows to automate various repetitive operations, detect potential equipment flows, and create a more cohesive and informed user experience.
The Smart Real Estate refers to a set of IoT-driven smart building solutions. In its core, Smart Real Estate operates on the basis of real-time data, providing an insight into the functional performance of a building performances and enhancing its tenants experience. The technology basically turns any physical object related to the building performance into a source of information. As a result, real estate companies significantly increase their revenues, decrease costs, and improve their asset utilization.
Challenges in the Real Estate and How IoT Real Estate Technology May Help
“We’re seeing traditional strategies, technologies and business models change faster than companies can keep up because of this tremendous transformation brought about through the Internet of Things,” said Chris O’Connor, the general manager, Internet of Things for IBM. “Fortunately, the IoT revolution has also allowed us to give enterprises the ability to access and analyze data quickly and efficiently, creating meaningful insights that benefit business and society alike. Our goal is to harness this fundamental transformation to improve performance, optimize supply chains and enhance service delivery for our customers.”
IoT-driven real estate applications help to address a number of challenges that real estate companies are facing today.
IoT for Covid-19 and the Limitations It Caused
Unexpected events, such as the current pandemic, bring many industries to a precarious state. Real Estate is not an exception. Social distancing has transformed the practiced ways of people’s interaction with physical spaces, and the initial effect of the virus outbreak has brought about the need to change the traditionally accepted business practices in the real estate sector.
To respond to the current threat of COVID-19, the real estate companies are starting to embrace cutting-edge tech initiatives, one of which is IoT Real Estate technology.
IoT applications can assist in complying with Covid-posed restrictions by tracking whether social distance requirements and wearing masks are observed within real estate offices. IoT sensors also monitor and report the air quality inside the premises of a real estate companies.
Read more about IoT solutions in the times of Covid-19.
Another major challenge for the real estate is affordable housing. According to CNBC, the housing shortage appears to be the worst ever recorded in the history of the United States. With thousands of individuals under 40 struggling with debts and rising healthcare costs, even modestly priced real estate becomes less and less affordable for them. Due to customized energy management the IoT technology allows real estate companies to cut their costs on utilities. As a result, companies can provide better price offerings for tenants, thereby generating more customers.
Today, more and more real estate agencies embrace nontraditional approaches relying massively on virtual customer visits and strong online presence by providing IoT-supported advanced home-hunting. With IoT Real Estate applications, companies can attract potential clients by sending them promotional interactive messages that provide an opportunity to take a virtual walk inside the key location. Moreover, applying know-your-customer approach, real estate managers and executives gain valuable insight into customers behavior. Additionally, the IoT real estate applications provide potential customers with detailed information about the property allowing them to formulate their queries without the involvement of realtors.
IoT can be a game-changer for areas with an unstable climate and changeable weather conditions. In today’s world, the frequency and severity of hurricanes, tornadoes, and floods has greatly increased and has affects the value of disaster preparedness and resilience. Specialized weather sensors ensuring real-time monitoring can provide an advance warnings of adverse weather events, keeping real estate managers and clients better aware of the potential threats to negotiated properties.
Sophisticated Customer Demands
Before the corona crises the real estate industry had already been moving rapidly towards digitalization. However, the outbreak of the pandemic skyrocketed the whole segment pushing it towards digital transformation.
According to McKinsey, the business world has vaulted 5 years forward in consumer and business digital adoption in a matter of around eight weeks. As more companies adopt digital-first products and services, customer expectations and demand for more sophisticated solutions opportunities constantly grow.
IoT, as the leading innovation of 2020, offers real estate executives a number of opportunities to engage customers and generate sales. From smart homes to IoT indoor navigation, IoT offers a wide suite of solutions both for private households and commercial sector.
IoT Predictive Monitoring:Crumbling Infrastructure
According to APEX Commercial Group, everything from bridges to mass transit are in dire need of upgrade. The quality of infrastructure places an important role for the evaluation of the prospective property. With its condition monitoring and predictive analytics, IoT can identify if a building or any of its components or utilities needs a repair or an urgent update. Built-in IoT sensors can track any inconsistencies and send alerts to tenants or real estate managers. Potential buyers of such real estate properties will be more confident of their choice knowing that their new homes are equipped with advanced technology that can identify and resolve infrastructure flaws.
According to a Johnson Controls survey of Building Efficiency Panel of Deloitte Financial Services, 70 percent of respondents suggest that the ability to predict and diagnose issues and provide solutions will be a “game changer.”
The current year has completely changed the way most businesses operate. For many companies, clients have migrated to digital with their employees are working fully remotely and become highly agile. In order to increase their workflow efficiency, a great many real estate agencies have launched analytics and high tech initiatives in their operations.
By 2023, companies will invest in IoT up to $1.1 Trillion.
IoT Real Estate offers cutting-edge solutions to meet advancing challenge. With IoT, managers can track employee’s performance, create highly customizable workplaces, and automate redundant tasks.
With the ability of IoT to analyze huge amounts of information in real-time, smart buildings system based on IoT technology has found use in office premises, as they allow to adjust and customize a workplace in accordance with current needs and requirements. For instance, IoT buildings system can track the staff location and movements, identifying where employees spend most of their time throughout the day. As a result, the system will determine offices and locations that are not used efficiently, and can be further rented.
Furthermore, IoT enhances the workforce productivity by automating repetitive tasks such as swiping access cards, easily checking real-time occupancy of conference rooms, and track assets. For this purpose, Softengi has developed Smart Door Unlocking System, which allows to easily unlock doors by scanning four fingers with a mobile camera. By connecting a fingertip scanning system with hardware installed in the door, users can distantly control door locking and unlocking by presenting their fingers to the camera of their App.
Portfolio Risk Management
Operating various management processes without manual involvement, the IoT Real Estate system leverages the home infrastructure, At the portfolio level, the IoT technology enhances tracking and monitoring combined with porfrolio analytics, that results in more granular valuations, lower asset risks, as well as augmented portfolio management capabilities. The IoT-driven Portfolio Risk Management can track the flow of people, enabling commercial real estate owners to analyze space usage patterns and occupants behavior. The gained information can help property managers to identify excess capacity and increase the efficiency of the portfolio management.
Read more about how you can use IoT Analytics.
Use Case: Softengi’s Smart Space Solution
Softengi has developed a smart space solution for workflow optimization, which allows to effectively collect valuable data about the workplace and workforce within a given space and visualize them with the help of a web or mobile applications. The solution provides tracking staff and equipment location, identification of operational inefficiencies and alerts, as well as HVAC management. As a result, Softengi’s Smart Space Solution enhances workforce efficiency, workspace management, and workflow automation.
Read more about IoT-based Smart Space Solution.
Use Case: Softengi’s Digital Home
Softengi has developed a Digital Home solution based on IoT technology. Softengi development team has created a connected digital platform, which manages internal building management, from water leak prevention to security control. The platform controls all elements of the living environment: utilities, climate, ecology, safety, noise, comfort. Using Artificial Intellinge (AI), the IoT system is able, for instance, to shut the water off in case of a leakage , or to automatically switch the power off if a tenant forgot to unplug the iron.
Read more about Aziot HOME.
In order to meet dynamic customer demands and business needs, the Real Estate industry is actively embracing cutting-edge tech applications. Internet of Things has proved to be an effective solution for all participants of real estate industry – property managers, tenants, and building owners. It provides greater business value, differentiating companies from their competitors, and offers new sources of revenue. IoT energy management, workspace optimization, IoT risk management are the most efficient use cases of IoT Real Estate, that are rapidly spreading across the real estate industry. Beyond these solutions, Softengi offers development of tailor-made IoT Real Estate software that meets specific challenges of companies. If you are still not sure if IoT is the right technology for your business, let’s discuss it. Just reach us.