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Smart data management is essential in the real estate industry. In response to the explosive growth of data, smart software helps collect, analyse and update data efficiently. This offers real estate managers better insight and control so that decisions can be substantiated in a data-driven and strategic way.
Data is vital to every modern company and the arrival of the Internet of Things, among others, has created seemingly endless possibilities for the automated creation, collection, and analysis of data. This is reflected in the growth in the volume of data worldwide. In 2019, data volume worldwide was ‘only’ 33 zettabyte (ZB). This will have increased to over 175 ZB in 2025 according to IDC, a veritable data explosion.
Well-organised data management is vitally important for every company which uses data so that they can create value from the rising mountain of data. Merely collecting data is not enough. As I explain in this blog about data management in real estate, it is about the essential subsequent steps in the process.
Real estate & data management: increasing importance
As in every other industry, recent years have seen an explosive growth in data volume in the real estate industry. Traditionally, real estate managers and/or owners create and collect data about their property, such as recording the number of square metres of a rentable unit or changing the conditions of a rental contract. In time, other data is added, for example sustainability characteristics like the registration of the building’s energy label. This data collection will continue to increase in future, among others with the arrival of smart buildings. The ability to analyse this data well is important here, something that can be supported by using smart software.
How software supports the data management process of real estate
There are several advantages to using software in the data management process. The main benefits are:
- Consistent data definition
Consistent data definition is the basis for using compound datasets and comparing individual datasets. Software requires the application of a standardised data definition with a single definition of each term. For example: as a real estate owner, you can now compare data provided by multiple real estate managers or analyse the energy consumption of several properties. Furthermore, this principle makes it possible to consolidate data to create a total overview of the entire building portfolio. - Ensuring data quality
Assessing data quality is a time-consuming process. The software supports this process by applying automated validation to each imported dataset. As well as simply checking that the value has been delivered in the correct format, software can also apply business logic to check relationships between data. For example, checking that the start and end dates of the contract rules fall within the start and end dates of the relevant lease. By applying such logic, the quality of records can be assessed in minutes. This not only saves time, but also prevents bad data from being used for further analysis. In short, no more “garbage in, garbage out”! - An up-to-date picture
Good information provision starts with the availability of up-to-date data. Real estate professionals still tend to use Excel lists spreadsheets from multiple sources, which then also need to be manually updated. Software streamlines this labour-intensive process by automating data flows using APIs. This means that the most recently validated data is always used, resulting in the most up-to-date, reliable picture of the current status of the building portfolio. - In control
Another important element of data management is being in control of changes in the data. In Excel, it is impossible to automatically record all the changes made in a shared document. Software makes it possible to register the source of the data is and who changed what and when. This principle is recorded in an ‘audit trail’, which ensures that there is always control over the data and makes it possible to check why and when the changes were made.
From real estate data management to information
Smart use of your data management process is all about getting more insight and information. A well-organised data management process eliminates the need for data discussions and allows you to spend more time analysing, reporting and making decisions. When choosing a data management platform, it is important that it supports not only the data management process, but also key business processes. For real estate investors and owners, this involves portfolio monitoring, acquisition planning, budgeting, scenario planning and valuation, for example.
Make impact with data-driven insights
The solutions from Planons Real Estate offers the possibilities described above. From streamlining the data management process for real estate owners to supporting the key business processes in the lifecycle of real estate assets. This is facilitated by data-driven decision-making, centralised stakeholder communication and comprehensive reporting.
And this means spending less time on peripheral issues, giving you more time for analytics, optimising returns and making better informed decisions. Discover our software suite.