Real Estate and the Internet of Things
RE:Tech › Insight analyzes technology's impact on real estate with a focus on the Internet of Things (IoT).
At some point in the future, every real estate company will be affected by the Internet of Things (IoT). However, there is still a gap between ambition and investment when it comes to the IoT's impact on the real estate industry. The growing phenomenon by which not only people, but also “things” and devices are connected to the internet, hasn't been commercially ground breaking as promised. However, when IoT gains significant momentum in the real estate industry, expect the impact to be profound.
In particular, expect the IoT to challenge the conception of real estate development and property management via tech enabled networks. Real estate operations and partner ecosystems will be the very principle that makes the IoT so powerful.
Similar to the consumerization and the reorientation of Bring Your Own Device (BYOD), so too will the IoT spawn an outbreak of democratized data, where by data will be shared more widely than ever. The IoT will demand another round of management strategy review, new network evaluation tools, and business model revisions. Like all major changes in real estate, this one will create challenges, but also opportunities for real estate firms and owners to benefit from new demands for IoT real estate.
In the fast-evolving feature of IoT, new approaches to real estate are needed to address access to and deployment of data. Challenges in the form of cyber security are needed to guarantee that there will be no breach of data with so many moving parts across so many different networks and organizations, as well as the adoption of new devices like wearable technology.
Succeeding in the IoT era will depend on defining and deploying not only the right real estate technologies, but also the right policies and strategy that best fits your business model. The potential of the IoT to yield positive economic gain is vast. While the fundamentals of real estate may remain everlasting, integrated devices and systems will lead to better decision making, smart and more responsive building, and accessibility.