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Uses and Advantages of Predictive Analysis in Real Estate 2024
Uses and Advantages of Predictive Analysis in Real Estate 2024
Predictive analysis is a way to forecast future trends and results by analysing historical data with statistical algorithms.

Data collection and analysis and artificial intelligence are not novel concepts anymore. These have been, in one way or the other, integrated into our daily life. Of this evolving technology, predictive analysis has stemmed up as a useful concept with promising prospects.

One may doubt the importance of big data and predictive analysis in the real estate sector. But, in this techno age, everything is connected to everything else. The real estate sector, then, is also not isolated from this- it is not just about buying or selling land or property or buildings. It is about analysing which land was sold by whom for how much or how many flats were bought in one specific area. How is this analysis useful, but?

A careful study of historical patterns of sale and purchase of land can help determine futuristic patterns. This concept is called predictive analysis. By definition, predictive analysis is a way to forecast future trends and results by analysing historical data with statistical algorithms and machine learning methodologies. To understand how predictive analysis works, one must imagine logging in to his favourite e-commerce website. Based on his previous purchases and wish list, the website lists some recommendations.

A similar algorithm will be at work when the predictive analytic tools are used in the real estate sector. Not only will this be convenient for potential buyers, but more so for real estate consultants. They can, in relatively lesser time, offer listings to buyers based on their preferences and demands.

Moreover, many real estate consulting companies use this technology to give their customers a fair and honest idea of the current and future price trends. This not only helps in the customer's decision-making process but also helps establish a relationship based on trust between the consultant and the customer.

Developers, too, make use of big data analytics in real estate. One of the many promising prospects of this technology is the data that developers would have access to- they will be able to know the regions which have featured most often in customers' search lists. This will help them formulate better business plans that are in accordance with their customers' recommendations and demands.

Indian real estate market is already paving its way towards transparency through the implementation of RERA. Some state governments, like Maharashtra government, are complementing this transparency with technological development by mapping projects to offer customers a real-time view. With predictive analysis, home-buyers will have a clearer idea of the latest status of their on-going investments, and of the past, present and future rates specific to specific regions. Consequently, the correct and safe implementation and use of big data and predictive analytics will leave home buyers more aware.

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