Technology and Real Estate Investment Banking
In the modern world, technology is an essential cog in the wheel of turning trading strategy into
a profit-making venture. In Real estate investment banking, technology enables the pricing of
newer models and how the product will be delivered straight into the market.
Technological advancement such as revolutionary devices, cloud-based systems, and blockchain
are keeping the real estate sector afloat presenting a once in a lifetime opportunity for real
estate investment bankers to expand their portfolio. In this article, we are going to discuss how
technology has shaped real estate investment banking.
Impact of technology on Real estate investment banking
First, we need to understand what Real estate investment banking is? In lay man's term real
estate investment banking the process of connecting capital providers with capital seekers. The
primary role of real estate bankers is to analyze capital stocks like JV equity and preferred
equity and identify potential sources of capital in terms of types of assets, investment
possibilities, risk profiles, and many more factors.
Data Management
Technology can easily outperform investment bankers in performing significant duties such as
financial analysis, conducting market demographic studies or even environmental research.
Real estate bankers in 2019 have learned to exploit technology for efficient data management.
It has revolutionized the mode of gathering and analyzing information; investment bankers now
can track what was previously considered as untrackable. Big-data revolution has transformed
the analysis of urbanization, through closely watching urbanizing investment bankers can now
anticipate trends in real estate investment banking.
Outlining Data-Driven Insights
Technology can easily showcase and find identical patterns in data, even if the data is not
apparent. Investment bankers at times may not have the ability to point out complex patterns.
Not only finding the information but also gaining relevant insights from it becomes a problem.
Using technology investment bankers now have the capacity of detecting all the relevant data.
Calculation of property prices
In the real estate sector, it's difficult and tedious to determine property such as newly launched
Riverfront Residences condo value. Most realtors, property managers, and investment bankers
calculate costs according to previous price sales without factoring in other factors such as
the neighborhood, infrastructure, transportation, or environmental changes.
With pattern recognition, technology can reveal factors affecting property prices ensuring
investors get value for their money in every real estate transaction.
Hyperconnectivity
Globalization has resulted in an explosion of information and services, the information base on
real estate investment banking that's readily available to investment bankers are more in-
depth, accurate and can be accessed in real-time.
As a result of technology investment bankers can leverage this wealth of information to make
a more informed and thorough decision by identifying valuable real estate prospects for
acquisition or reselling.
Customer interaction
Through technology, chatbots are used in interacting with clients. The bots are smart enough to
process complex user queries and have significantly improved the service delivery of real estate
investment bankers.
According to a study, 45% of end-users and potential customers prefer interacting with the bots
as a primary source of communication.
