The Impact Of IoT On Real Estate: Regulation, Ethics, And Disruption

Part two – Brainstorming

Internet of Things (IoTs): IoTs are a modern device that has been released to be installed in home and organization environment and which has been made to connect and create a ease of functioning for individuals in the working or home atmosphere. IoTs are wireless devices that connect different aspects of the house like lighting, electricity, surveillance, television, etc, and connects them wirelessly, and automatizes them on the basis of the regularity of use, so that there will not be any need for the individual to take up the effort to activate them. It is the future in which individuals could be more active in their own work and would be more connected to the devices and the technology that surrounds them (Barkham, Bokhari and Saiz 2018). Of course, there are privacy issues and security issues that come due to these sharing of information but top quality IoTs have tackled these problems already. It is an aspect inside homes which is in demand today.

Real Estate: Real estate is a property which has land, crops, buildings, immovables objects, etc, which has an interest vested in it. Real estate business is a business wherein agents engage in the purchase or in the transactions processes that transfers the ownership of a certain real estate into the hands of another willing participant, thereby creating a successful exchange (Diamond, 2015). Real Estate is a way in which the property is made to look attractive to land the best deals, to manipulate costs, and to meet the demands of customer whenever any kind of changes occur in their current needs. Hence, real estate business is a dynamic business which, like the fashion industry, has to deal with many changes and needs to modify according to those aspects. Real estate agents or estate representative engage in the process of dedicated sales and marketing support in exchange for commission which is the way that they make profit and run the business of real estate.

With the introduction of IoTs, there has been some major changes that took place with the interaction of customers and the real estate agents. The various governing factors are mentioned and discussed elaborately. They are:

• Home buying is now Smarter: Nowadays, home buying have smarter in the sense that it has become more technology oriented rather than on space and size, and therefore, the buyer focusses more on the possibility of connectivity of devices, which is generally achieved if the distance is shorter.
• Homebuying has become more personalized:Home buying have now become more personalized in the aspect that homebuyers could demand special aspects such as technological connectivity, security, and automatization. Hence, they demand exact information about the product that they wish to buy and customize their own product even if they need to pay more for it (Ward 2016).
• Impact on real estate agents:The impact on the real estate agents have been both positive and negative. They have to now search more technologically connectible houses which should be not too spacious, but capable of comfort. On the other hand, because of the different demands, the real estate agents can set different prices and do not have to put in much effort in the personalization of the product which is already being done by the individual buyer.

The factors that make the impact possible are:

• Market: The real estate agents are now proceeding to a competitive market where the competitors are capable of data mining and understanding the needs of the people and therefore engaging the search of IoT enables rooms and organizations. So, the market has become more competitive on the technological side.
• Law:From a legal point of view, there has been not much impact excepting a movement towards safety that has been initiated by the safety situations created by IoTs. As a result, dependence on the safety situation has made the law or the general organization as a whole to advertise the use of IoTs and hence create a preference for IoT enabled houses. The law has also allowed personalization of choice of individual buyers (Vanishree & Raghavendra, 2017).
• Architecture:There has been a major impact in terms of the architecture. There has been an increase in the demand of houses which are smaller in architecture but capable of connectivity and hence, there has been a major move against the previous generations demands for spacious houses.
• Norm:From a societal point of view, there has been more informed buyer that have come and that have been able to put more demands in front of the real estate agents. The informed buyer has been created by the internet and the real estate agents have become more in tune with the time, wishing the buyers to make personalized choice on the basis of the concerned information that they acquire.

The above factors create the impact on real estate. However, there is one ethical impact the occurs with regard to the societal norm:

• Informed Buyers: While informed buyers are a positive growth, there has been too much reliance on the buyer’s decisions, which had made real estate agents not put their views. This is ethically wrong as they may keep silent while the buyer makes poor decisions as well (Kejriwaland Mahajan 2016).

One of the major changes due to this impact would in the communication between buyer and real estate agents who would be in a position to believe that the buyer is quite informed and therefore, resort to keeping their opinions private (Helbing, 2015). The major processes and effects in this area would be:

• Events: The event in this case would be a transaction process that is being set up by the individual and the real estate agent (Kanbur, 2017).
• Activities or Tasks: The activity is the proposal of the deal for a specified real estate.
• Decision points: The decision points in this area would be the decision in the aspect of engaging in the purchase of certain real estate and this could be done if the real estate agent is capable of persuading the buyer or if the buyer is satisfied with the presentation of the product by the real estate agent (Berzin, Singer& Chan, 2015).
• Actors: The actors involved in this area would be the real estate and the buyer.
• Outcomes: Generally, if the buyer act to be more informed, the real estate may not pose their opinions and would rely on the buyer completely. But if the buyer respectful, then the real estate agent may engage in a healthy communication process

Conclusion

IT industry is growing at an alarming rate. IoT is one of the fastest growing and very high demanding subject of today’s’ day to day life. Service industry to product manufacturing industry all is taking advantage of IoT technology. In this report, the impact of IoT in the real estate has been discussed. Research has been carried out in order to understand the various connections between the technology and the industry. The impact of this technology has been elaborately analysed on the life of today’ generation Role of IoT in making people’s life easier has been discussed in this. And it was found that a not only individual but there is huge impact of this technology in various industry and business arena. The regulations and ethics are also discussed that are concerned with the governing factors of IoT. The various factors have been identified that also play an important role that impacts the technology of IoT.

References

Barkham, R., Bokhari, S. and Saiz, A., 2018. Urban Big Data: City Management and Real Estate Markets.

Berzin, S. C., Singer, J., & Chan, C. (2015). Practice innovation through technology in the digital age: A grand challenge for social work. Grand Challenges for Social Work Initiative Working Paper, (12).

Diamond, L. (2015). Liberation technology 1. In In Search of Democracy (pp. 132-146). Routledge.

Helbing, D. (2015). Societal, economic, ethical and legal challenges of the digital revolution: from big data to deep learning, artificial intelligence, and manipulative technologies.

Kanbur, R. (2017). The Digital Revolution and Targeting Public Expenditure for Poverty Reduction.

Kejriwal, S. and Mahajan, S., 2016. Smart buildings: How iot technology aims to add value for real estate companies. Deloitte Center for Financial Services.

Vanishree, K., & Raghavendra, H. (2017). A Study on Implications of Digital Revolution in the Field of HR. Adarsh Journal of Management Research, 127-131.

Ward, D., 2016. The smart way to use corporate real estate. Corporate Real Estate Journal, 5(3), pp.205-212.