Internet of Things & Real Estate in 2021
IoT Technology For Real Estate Market
The IoT benefits for telecom, retail, or manufacturing domains seem apparent. But what about the real estate area? Following the PwC research, 73% of real estate business players already put IoT implementation on the agenda. Here we intend to find out what caused such a rush. Are you with us?
How IoT Impacts Real Estate In 2021
The Internet of Things completely changes the approach to real estate commercial activity as well as building operation. Let's take IoT security systems, for example. Their core function is safety provision. But due to digital products like Amazon Echo or Ring Alarm Security Kit, you no longer have to worry about turning off an iron or a tap. Agree it is a new level of security. Thanks to it, you can manage your property from anywhere.
But, what about business advantages? - you might ask.
First of all, IoT implementation increases the cost of buildings approximately 10x and more. Following Zillow data, an ordinary house in New York costs from $185 k. IoT systems installation price varies from $100 h up to $ 4.5 k. But smart house system homes price in the same location begins from $2.5 mln.
The same applies to renting real estate. 58% of business representatives believe amenities like automatic doors, motion sensors, and so on boost renters' experience. Accordingly, this pleasure is more expensive.
Besides, you have no idea how IoT technology helps out real estate agents and other real estate bargain participants. For instance, the Softermii apps, like Apartmii, Rently and Proper allow 56% of buyers and 58% of sellers to close deals online without a previous visit to a property. An agent can remotely showcase available real estate options to several clients and check their documents remotely. No dozens of trips per day, time-consuming risk management procedures, etc. Such software also simplifies communication between landlords, tenants, and agents by bringing it into a convenient mode.
And it is just a small part of IoT powers in 2021. Following the latest Memoori forecast, the number of devices connected to commercial smart buildings will grow up to 3 bn by 2025. It's almost double what it was in 2020. Tenants, agents, owners of residential and commercial real estate intend to use the Internet of Things to the fullest, eliminating several significant gaps. Let's figure out which ones exactly.
What Real Estate Issues IoT Technology Can Deal With
What can take care of building security better than Apple, Amazon, Samsung, or Bosch systems?
The IoT is loved for protecting the real estate from external and internal hazards while preserving the investment. The software can notify you of any home security threat by sending a photo or video reports, for example. It flawlessly integrates with countless devices and systems, including law enforcement, firefighter, etc. Your smart home сan warn you about an impending natural disaster before the government does it. Thanks to rapid response systems, buildings are safe no matter where they are located.
According to ResearchAndMarkets, the global smart home security market will grow to over $3,2 mln by 2026. It means we should expect even more advanced security features soon.
#2 Energy consumption
The power of IoT smart house systems is in the flawless operation of sensors and connected devices. Let us prove it with an example. Imagine an indoor air temperature control app. You can set a convenient temperature using your smartphone. The software switches to different modes depending on whether you are at home or not. If not, the energy consumption is reduced.
Indicators can track the activity of all who are in a building and regulate the systems' operation depending on people's presence/absence. In other words, IoT-connected devices make facility management more smart and efficient, reducing maintenance costs respectively.
Following G6 World's forecast,
"by 2030 Internet of Things will save approaching 1.8 PWh of electricity, and an additional 3.5 PWh of hydrocarbon use, resulting in total savings of 5.3 PWh of energy."
#3 Environmental pollution
Since we have already started about the environment, why not continue? IoTnews has evaluated the G6 World's assumption and calculated that IoT implementation will save 230 bn m3 of water as well as prevent 1 Gt of CO2 emissions. The last ones are reduced largely due to the smart systems' self-regulation feature. Less energy consumption = less emissions. However, fewer visits to real estate property before a deal is closed also positively impact the environment. They lead to fuel economy, the above reduction of carbon dioxide emissions, and overall planet support.
Rapid Application Development Tools For IoT Implementation
Flawless IoT device integration stops being rare and begins to become a reality. To get the most, real estate businesses need to shape the Internet of Things ecosystem. In other words, for the convenient IoT capacity usage, it is necessary to create a platform for real-time data exchange.
Meet Max, Real Estate Customer Support Manager in New Jersey
Max works for Real Estate management company which operates 14.000 apartment units in New Jersey. Max controls comfort in common areas like halls, parkings, emergency exits, gardens and etc. Max also helps clients to check their utility bills and arrange solving of troubleshooting issues covers by his colleagues. Max is concerned when solving problems is too long and clients are unsatisfied.
Sometimes Max needs to spend hours to cover emergency issues.
How can IoT management platform increase Max productivity?
An open source low code platform can be your reliable ally in IoT infrastructure development. It usually speeds up the development cycle by 2 and more times. Leveraging its power, you can transform your business model effortlessly and sell a product as SaaS, expanding your revenue streams.
Thus, the real estate domain benefits from the Internet of Things no worse than the above retail or telecom. However, in this case, the technology can do much more than CX improvement or increasing profits.