I've recently been thinking about the total size of the real estate market, so I began to do some research.
Turns out, as one might have suspected, that real estate is the world's largest industry. Savills, a London-based real estate advisor, claims "world real estate accounts for 60% of all mainstream assets." Forbes Magazine claims that property is how the majority of the world's billionaires go from rich to compiling mega-fortunes.
Just how big is real estate? Yolande Barnes, of Savills, explained to Fortune.com that "the total value of all the gold ever mined is approximately US $6 trillion," a number that "pales in comparison to the total value of developed property by a factor of 36 to 1."
Real estate is the largest industry, but technology is the fastest growing industry. To me, that sounds like technology and real estate are on a collision course. That has the team here at Maxprop excited about the prospects, and we've been investing steadily in the digital infrastructure and systems we use within the company and with our clients.
Technology is growing at exponential rates, it's sometimes hard to keep up. So we thought we would share a handful of trend considerations for those interested in commercial real estate and commercial investments.
Finding Utility in Commercial Real Estate Data
So quickly is software evolving that 2015–2016 buzzword phrases such as "big data mining" are tired and do virtually nothing to indicate which trends will impact commercial real estate in 2017. Nevertheless, data is still the most significant trend in digital technology, but the 2017 buzzword phrase is "using big data". How do commercial property investors in Durban use data?
“ Real estate is the largest industry, but technology is the fastest growing industry. To me, that sounds like technology and real estate are on a collision course. ”
While the large global players in both the construction and real estate industries have started using enterprise resource planning (ERP) systems and customer relationship management (CRM) software to manage data generated by the business, as a whole, most have yet to jump in with both feet.
Expect even small players to begin depending on management software to operate their businesses. Automation tools such as ERP, CRM and project management software allow firms to do everything from payroll and employee supervision to bid proposals and construction project management, helping to improve productivity, reduce costs and streamline processes.
According to Deloitte, the largest professional services network in the world, "exponential" technologies such as virtual reality and artificial intelligence are quickly moving to the forefront of digital technology.
The cost of a commercial property valuation can be dramatically decreased using exponential realities — such as virtual walk-throughs and 3D schematics to AI software that calculates millions of variables to determine risk and reward.
Sensor Software and Equipment
Those managing commercial buildings in Durban are quickly learning how much money they can save by using automated building control systems. Everything from turning off lights when employees leave a room, to lowering the temperature of a building at night can be employed by Durban property management firms to reduce electricity costs, increase security and decrease the number of employees required to maintain a building.
Protection of transaction privacy is a problem mega-industries have. While bitcoins and other digital currencies have been slow to gain acceptance, the fact that they have proven to be exceptionally private because of — arguably — unbreakable cryptology is likely to begin garnering attention