Introduction
The first industrial revolution brought mechanization to the world. The second brought new sources of energy such as electricity, gas, and oil. The third was with the rise of electronics, telecommunications, and computers. Now, the world is experiencing its fourth industrial revolution which is characterised by a fusion of that blur the lines between physical, digital, and biological spheres (Schwab, 2016). A deeply interconnected world due to the rise and proliferation of the internet has brought the benefits of technology to many parts of the developing and underdeveloped world. The problems associated with climate, disease, poverty, and urbanisation are being tackled in a better way using data analytics. It can rightly be said that data is the king of the new world. With the rise of technologies like the internet of things (IoT), the data that is being generated is not only more accurate and detailed, but it also translates into better experiences for consumers, governments, and policy analytics. Therefore, understanding Internet of Things (IoT) technology and its impact on real estate is extremely important for progress in the sector.
Research Questions
- What is the Internet of Things (IoT) technology?
- What are the prospects of using IoT technologies?
- How can IoT devices transform the real estate sector?
What is the Internet of Things (IoT) Technology
Humans have been using a diverse range of mechanical and electrical devices to help with specific tasks and procedures. Any object that is made to serve a specific purpose is generally called a device (techopedia, 2021). And with advancements in technology being made on a rapid scale, many of such devices which humans interact with on a day-to-day basis are becoming smart. A smart device is similar in its functionality to its counterparts, with the exception that it contains sensors and onboard computers which collect data and analyse information to make decisions or upgrade user experience. Sensors on such devices can include mics, infrared cameras, temperature monitors, humidity sensors, pressure monitors, and much more. The interesting part is that these devices have the ability to connect to the internet and can also engage with other smart devices in the same environment, allowing them to form deeper connections between all the data being collected. One can only imagine the possibilities that are opened due to this functionality. This interconnectedness of smart devices is called the Internet of Things (IoT) (Oracle, 2021).
IoT devices can range from everyday household objects to sophisticated industrial tools. The use case of such devices is increasing with time. As the world gathers to fight climate change, reduce pollution, and make living in cities more environmentally friendly and sustainable, IoT devices can play a large role in achieving those targets. On a personal level, IoT can be implemented in home appliances to give an individual a more seamless experience across all devices. The system can also manage energy efficiency by recognizing peak usage times and automatically turning off devices when kept idle. On an industrial level, IoT can be integrated into manufacturing, smart power grids, connected logistics, and smart supply chains. Keeping in view all these applications, the one area which stands to benefit the most from this new technology is the real estate sector. Not only is real estate linked to many socioeconomic factors, but growth in the sector can also uplift societies and alleviate poverty for many (Fracttal, 2019). Continue reading to understand the significance of IoT in real estate.
How can the Internet of Things (IoT) impact the Real Estate Sector
Internet of Things (IoT) is impacting almost every industry with real estate being no exception. Besides revolutionizing the buying, selling, and renting processes, the technology will also change how people interact with their environment, eventually bringing huge financial impacts to property owners. People take multiple factors into consideration when buying or renting homes or commercial property. With the introduction of IoT technology and smart devices, additional factors can be considered such as humidity levels, air quality, sunlight exposure, energy efficiency, and much more. This means that real estate agents will have a greater number of details while giving out options to clients and can also characterize different areas with their key characteristics. This will inevitably make real estate marketing a more rich experience for the buyer and the seller.
People mostly visit several properties before they tend to buy or rent. A qualified agent is required to guide them along the process. Innovations in smart devices have minimized, or in some cases, removed the requirement of a real estate agent. Clients can download an app that can guide them by using multiple IoT smart devices and virtual reality. Visiting multiple sites will become easier as the client will not be dependent on the availability of real estate agents. The phenomenon is being practised by an app called ‘Rently’ (Softermii, 2021). The devices can also verify the identity of viewers and help in the reduction of fraud cases. Therefore, the productivity of the real estate agency is increased, and clients can examine offerings at their leisure (Vaniukov, 2020).
IoT application in homes is one of the most considerable use cases of the technology. From a bulb to your refrigerator, television, or washing machine, almost all devices are now being installed with onboard computers and sensors that connect to an app on the user’s mobile phone. The user can then control different aspects of these device’s functionality and even program them to perform specific tasks at predefined time periods. Not only does this increase the energy efficiency of the entire house, but it can also enhance security. Taking this concept further, smart buildings use IoT devices to develop building managing systems (BMS). In the case of commercial buildings, if the efficiency of energy and security systems is increased, the property will attract more tenants and keep them satisfied (Techjuice.pk, 2021).
Key Takeaways
The world is experiencing its fourth industrial revolution which is characterised by a fusion of technologies that blur the lines between physical, digital, and biological spheres.
A deeply interconnected world due to the rise and proliferation of the internet has brought the benefits of technology to many parts of the developing and underdeveloped world.
As advancements in technology are being made on a rapid scale, many of such devices which humans interact with on a day-to-day basis are becoming smart.
A smart device is similar in its functionality to its counterparts, with the exception that it contains sensors and onboard computers which collect data and analyze information to make decisions or upgrade user experience.
Real estate is strongly linked to a society’s development and is a massive driver of growth in an economy.
Internet of Things makes it possible for the real estate industry to increase efficiency and better management of assets, be they residential or commercial.
Conclusion
The world is evolving at a fast pace. As the fourth industrial revolution focuses on combining the physical, digital, and biological spheres, mankind will continue to experience radical shifts in their use and consumption of technology. Real estate is strongly linked to a society’s development and is a massive driver of growth in an economy. Internet of Things makes it possible for the real estate industry to increase efficiency and better management of assets, be they residential or commercial. All in all, IoT technologies are bound to change the real estate sector in a positive way.
