Changing Times: 3 Examples of Technology-Driven Evolution in Real Estate Development
In this digital age, technology is changing how consumers purchase everything, from laundry detergent to homes. Technological advancements are also changing how companies and industries operate, including real estate development. Here are three ways that technology is shifting property development.
Sustainability and environmentally conscious building practices have grown increasingly common over the past few decades and show no sign of slowing down. With a popular buzzword being “energy efficiency,” real estate development has evolved to take this into account on everything from building materials to construction methods to property locations. Green building is not a mere passing trend. This movement is here to stay, and technology plays a big part in it.
Technology facilitates eco-conscious property developments in many ways.
- Improves water retention
- Lowers energy consumption with advancements such as energy-efficient appliances and lighting systems
- Makes cooling and heating systems more efficient with innovations such as cool roofs
Real estate development is adapting to meet the demand for more environmentally friendly properties, and technology is at the forefront of these changes.
Getting Down With Data
Modern property development is driven by data. Detailed research and analytics software such as CoStar, which is designed specifically for real estate developers, along with more generalized data study programs such as Real Capital Analytics guide developers every step of the way.
Experienced professionals in the industry such as Aubrey Ferrao, who has seen real estate development evolve through the years, understand the proliferation of data in today’s business world means they need comprehensive programs to help make the most of each piece of information. By using advanced programs to stay on top of industry data, property developers can spot trends, reconfigure plans quickly, and manage financial assets.
Shaping Future Neighborhoods
Living in the suburbs and working in the city is not a new trend. For decades people have moved out of urban areas and sought slower-paced towns within driving distance to raise a family, find more affordable housing, and enjoy a gentler, less hectic lifestyle. A Morgan Stanley study, however, found that Americans generally spend about 75 billion hours annually driving, negating some of the positives of suburban living.
Technology is working to change this. Findings from IHS Markit indicate that by the year 2035, there will be more than 70 million self-driving vehicles sold around the world. Such developments open up new worlds for all sorts of companies. Rather than focusing on the road, those commuting to work can let the machine do the driving and catch up on sleep, shop, read, and work.
Autonomous vehicles also launch changes for property developers. Autonomous cars will change or reduce the types of parking facilities needed in urban centers, as well as the sorts of buildings required. Self-driving vehicles will increase development in suburban areas as more people find it easier to move out of cities since they will not be burdened by the daily drive, using their time for other things as the machines take over.
Vision for Tomorrow
Long-time property developers such as Aubrey Ferrao business professional understand that technology that creates such far-reaching implications in society affects the very fabric of their industry. The key to thriving in this modern era of change, just as during the Industrial Revolution at the end of the 19th and beginning of the 20th centuries, is embracing the advancements and adapting operational practices to make the most of new worlds as they open up.
Technology has advanced rapidly in the past 70 years, and it is changing the way people live and the way companies and industries do business. Real estate development is intrinsically changing based on today’s technology to meet the needs of tomorrow.