Many changes are challenging the real estate industry. The rise in the prices of construction raw materials, the energy crisis and inflation have impacted both property developers and property owners. At the same time, real estate operators are expected to take concrete actions to reduce emissions and increase the energy efficiency of buildings.
In the jungle of many expectations and challenges, it can be difficult to find the best way to act. Data can help to survive in a new kind of situation. Moreover, we believe that a smart real estate developer relies on data.
In this article, we will look at the unique situation of the real estate industry, examine what is smart sustainable development and how data-driven property development works.
Historically, the real estate industry has been a very stable and reliable industry. Now, it is on the brink of a completely new situation. The raw materials for construction have risen strongly in the last few years and currently, the price of construction has been higher than in years. There are several reasons for the situation, such as supply chain problems and labour shortages caused by the coronavirus, war, and inflation.
Although it is still challenging to predict future price trends, smart construction is the only way forward. You should still not compromise on responsible investments, because at best repairing the old instead of building a new one can bring considerable savings. Location information is a great way to consider the effects of different options before making a decision.
The most important task of a real estate developer is to find suitable properties. The location of the object is important, but it is not enough in itself to determine the development potential of a location. Especially now, when the industry is facing a new kind of situation and everything has become more expensive.
Renovating and repurposing old buildings has reared its head in recent years. For example, there are several office buildings in Helsinki that could be converted to residential use after the remote work boom has become more common. Retrofitting the old one is often a cheaper option. On the other hand, if the building is very old, the repairs and renovations required to increase energy efficiency might make the price tag too high.
The advantage of new construction, on the other hand, is that the builder can choose the latest, most energy-efficient technologies, systems and equipment right from the start. Although the initial investment may be higher, the long-term savings in maintenance and energy costs can be considerable. So how to make a decision? Location data brings completely new benefits to real estate developers.
When studying the potential of locations, a large amount of built environment data is needed. Often, in decision-making, data can be found both inside and outside the company. Download our guide to see these data sources on a location intelligence platform.
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Multiple survey results and reports published during recent years indicate that the majority of executives in the RE industry now believe that harnessing the potential of big data and AI offers a huge competitive advantage But how far are we in the transformation process? Has the industry unlocked the full potential of data, advanced analytics, and AI?
In today’s fast-paced business landscape, data is the driving force behind informed decision-making. Harnessing the power of location intelligence is no longer an option—it’s a necessity.
