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Digitalization in the real estate industry

Digitalisation has now reached almost all areas of our lives. Even though sometimes you hardly notice it in everyday life: without digitalisation, many things are simply no longer imaginable or seem completely outdated. 

The real estate industry is relatively late in the process of digitalisation. But the chances and possibilities are immense thanks to an enormous potential for efficiency.

The digital change- What is digitalisation?


Digitisation means that analogue information is converted into a digital format. 
Thus, basically, each scanned sheet of paper is a digitalisation. Nowadays, it is mostly done to save time, costs and space. And digitalisation does not stop with the scanning of documents, but rather just begins there.

We know it from our everyday life: smartphones and Google Maps navigate us safely to our next destination, where once you had to unfold paper maps or pull out the car atlas from under the passenger seat. In an office, most people sit in front of a PC instead of endless stacks of folders or paper deserts. 

The digital change is clearly in full swing. In some areas of the real estate industry, it has also taken root long ago: the search for an apartment or a house to buy is usually done online. With our portal immome.com now also for property sales.

In principle, all standardised processes are suitable for digitalisation. Especially if they have a high number of use cases and a low complexity.

Real estate economy and its digitalisation 



The online search for a property is only a small step in a chain of digital processes that now takes place almost automatically when selling a property. Every player within this chain comes in touch with the ongoing digital processes. From the online real estate portal where the property is offered, to e-mail contact with an agent, to the digital completion certificate on the tablet - digitalisation has simplified processes for a long time.

Current studies and surveys within the real estate industry 



Moreover, there is far more potential for digitalisation in the real estate sector. Every fourth real estate company currently invests 5% of its annual turnover in digitalisation (ZIA & EY Real Estate [https://www.ey.com/de_de/advisory/how-digital-transformation-opened-new-channels-for-growth]) and the numbers are likely to rise rapidly. Consulting companies, banks and audits have therefore increasingly conducted studies and surveys on digitalisation within the real estate industry in the last few years.

These came to the coincident result that above all the processes within the real estate industry can be optimized via digital channels. This again allows a faster processing in all areas.

A survey from 2019 by Union Investment [https://realestate.union-investment.com/de/mediathek/presseinformationen/2019/2019_08_15_digitalisierung.html] revealed that especially four fields of action are being invested in digitalisation.
The optimization of standard processes and interfaces is top priority, followed by the improvement of IT security and data protection. In third place is the optimization of customer communication. Particularly interesting is the fourth field of action: digital transformation in the minds of employees must be driven forward. 

PwC conducted a study in 2018 [https://www.pwc.de/de/real-estate/real-estate-am-benchmarking-survey-2018.html] to measure the current status of digitalisation within the real estate world and thereby draw up a forecast for the future. Four main technology fields were determined which will have the greatest impact on the real estate industry:
artificial intelligence, virtual reality, block chain and drone technologies.

Chances of digitalisation for the real estate industry 



Within the real estate industry there are numerous possibilities for digitalisation. A study by Deloitte [https://www2.deloitte.com/de/de/pages/real-estate/articles/digitalisierung-real-estate.html#] shows that investments are worthwhile above all as new technologies increase the efficiency potential and create additional value for the end user. 

Such potential can be hidden in reception automation, in the digitalisation of green area maintenance or within automated surveillance systems.

Digitalisation in property management 



Real estate owners can digitalize and thus simplify a whole cluster of processes in property management. Digital communication via e-mail saves not only costs but also money. 
This also applies if settlements such as additional costs, deposits and heating costs can be managed digitally. Electronic completion certificates facilitate and accelerate the repeating processes of apartment hand-overs. Data storage and data exchange can be digitalized and significantly simplified thanks to numerous special software providers. 

Monitoring systems have been equipped with cameras and sophisticated sensor technology for several years now. However, the technology is constantly developing: in the meantime, surveillance with drones has become a reality.

The maintenance of green areas is automatically regulated via a timer and allows the garden sprinkler to be turned on at the same time every day.
Last but not least also reception automation.

Virtual Reality - Interactive Customer Experiences 



The study conducted by PwC in 2018 included a survey on which technology would have the greatest impact on the real estate industry in the future. 83% responded that virtual reality and the use of drones would have the greatest potential for the future.
Emotions have always been the biggest stimulus of mankind. Those who can visualize a property in advance through virtual reality will be more easily enthused. This applies to a new construction as well as to a property for investment, which is located in another country. 

Digital viewing, 360-degree videos or recordings from a drone to overlook a large piece of land - all this is virtual reality. 

Digital solutions also help to avoid planning errors during the construction planning phase and to regard furnishing options even before the actual construction.

BIG DATA - Process Optimization by Data 



Big Data is a term that arose only through digitalisation. It denotes a quantity of digital data that is simply too complex for analogue evaluation. The simplest example is familiar to everyone: when shopping online you click on the detailed view of a product. Under the description appear shopping recommendations based on what other interested buyers of the product looked at. These recommendations are compiled by Big Data.

Big Data is also entering the real estate industry: through alarm systems with fingerprint sensors, smart homes with individually adjustable technology and already in digital real estate search.

The future is digital - also in the real estate industry 



TU Dresden was awarded the Innovation Prize in the category Research at the bauma fair in 2016 in Munich. The CONPrint3D team of the university developed a method to produce concrete with a 3D printer [https://tu-dresden.de/bu/bauingenieurwesen/ifb/das-institut/news/CONPrint3D].

It is quite clear that digitalisation has only reached the real estate industry in its early stages. Company headquarters and showrooms already express their own modernity, while within other areas digitalisation is only just starting to take off.
 
Our portal immome.com facilitates the sale of your property through our smart digital portal. Simply enter data into our online form and receive a fair offer within 24 hours - without any time-consuming work. Digitalisation is no longer a foreign word for us. 
 



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