Real Estate Insights Data intelligence and real estate – machines are the real game changer. Issue 3 (22nd December 2021)

• Record Type: Journal Article
• Authors: Cajias, Marcelo; Wins, Anett
• Is Part Of: Journal of property investment & finance. Volume 40:Issue 3(2022)
• Page Start: 306
• Page End: 310
• Publication Date: 2021-12-22
• Subjects: Artificial intelligence -- Future of real estate -- Algorithm-driven hedonic model -- Multiple listing system -- Positive externalities -- Rent value drivers; Real estate investment -- Great Britain -- Periodicals; Real property -- Valuation -- Great Britain -- Periodicals; Real estate development -- Great Britain -- Finance -- Periodicals; 332.6324094105
• DOI: 10.1108/JPIF-11-2021-0101
• Languages: English
• ISSNs: 1463-578X

Abstract

Abstract : Purpose: The paper shows with two concrete examples about how algorithms are used in active real estate management. The paper also highlights that the discussion about the adoption of new technologies is crucial for market players. Design/methodology/approach: The authors review the current status quo about new technologies in real estate and provide two examples of how algorithms can be used to understand locations and the value drivers of rents. Findings: Location, location, location is nowadays data, data, data coupled with the knowledge of how to create life out of data. Algorithm can help to understand the value drivers of rents and can also help to evaluate the attractiveness of a location. Practical implications: Real estate management will adapt to new technologies fast. This change has the potential to disrupt exiting strategies due to the increase in efficiency, insights, transparency and location knowledge. Investment managers walking this talk will definitely benefit in future. Originality/value: The paper makes usage of the latest machine learning technologies applied to real estate investment cases. This is a unique opportunity on bringing light on the discussion about transparency in real estate.