Catella – Corporate Finance: Catella: Use of Big Data in the Real Estate …

STOCKHOLM–(BUSINESS WIRE)–The trend of increased use of big data in the real estate sector is
creating opportunities for innovation leaps and will lead to changes in
forecasting methods, new and more transparent pricing methods and
personalised property marketing.

In its new report, BIG DATA in the real estate sector – opportunity or
threat to the industry? Catella Research examined the status quo and the
future viability of the European real estate sector against the backdrop
of digitalisation. The survey covers 468 European real estate firms.

“Big data is seen as relevant and revolutionary for the future
development of the real estate sector. But although all the firms
included in the survey produce masses of data, only a small proportion
of them integrate it comprehensively as a process element in service
provision, forecasting, or strategic planning”, says Dr Thomas Beyerle,
Head of Research at Catella.

The majority of firms (60.4%) currently make decisions based on past
experience; only a quarter (23.4%) indicated that they make decisions
based on data. A further 11.7% reported using a combination of data and
experience. The largest transparency deficits in real estate markets
were identified as Data/survey methods not standardised (34.2%), No
central data source (21.1%) and No data available at sub-market level
(19.2%).

Asked about the greatest sectoral changes resulting from ongoing
digitalisation, 30.5% expect structural changes in the area of property
investment, followed by 23.8% in transaction consulting. Only 5.7%
expect any noticeable change in the area of property finance. This will
lead to changes in forecasting methods; issues of outsourcing or
make-or-buy decisions in the real estate industry will top the
decision-making agenda.

“We anticipate major structural changes for the industry, especially in
the area of customer-based specialisation and transparent pricing. But
answers will also have to be found to the issue of ownership structures
of the data. There is a latent risk that data oligopolies will emerge in
the industry”, says Dr Beyerle.

But Catella is confident that the increased use of data will provide
opportunities for innovation leaps, especially in the real estate
industry. A prerequisite is that the development is driven not only by
mundane concerns such as data availability, consistent standards or
simply transparency, but by the realisation that data is the key to
long-term financial success. We can already see that the new, digitally
focused real estate firms are creating a novel environment of
competition with established industry players.

For more detailed information please see the attached report.

For more information, please contact:
Dr. Thomas Beyerle
Head
of Group Research
+49 69 310 19 30 220
thomas.beyerle@catella.de

Press contact:
Ann Charlotte Svensson
Head of Group
Communications
+46 8 463 32 55, +46 72 510 11 61
anncharlotte.svensson@catella.se

About Catella: Catella is a financial advisor and asset manager with
in-depth knowledge of property, fixed income and equities. Catella is a
leader in the property sector, with a strong local presence in Europe,
and employs some 500 professionals in 12 countries. Catella is listed on
First North Premier on Nasdaq Stockholm. Read more at catella.com (http://www.catella.com/).

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