How can developers use data to their advantage?
In an industry that’s intrinsically traditional, the notion of utilising data more widely is often met with apprehension. After all, technology is largely deemed unnecessary in a sector that’s driven by intuition and hands-on experience. However, as the property industry continues to recover post-pandemic, the relevancy of technology and data is becoming more evident than ever before – the key is understanding exactly how this can be used to the advantage of developers.
Throughout the past year businesses have struggled immensely and so, moving forward, we must embrace solutions which have been created to simplify our internal processes, enhancing our results and profits as a result. The risks of using data incorrectly, or failing to use data entirely, are undeniable; you may invest in land that’s not viable or perhaps be turned down for planning because you don’t have the information you need to build housing that’s relevant for the nearby population.
As such, data informs every stage, and outcome, of a development project, bringing with it an array of practical and financial advantages – something which cannot be overlooked during such uncertain times. However, the nuances of utilising data are vast and there are many ways by which you can incorporate its many benefits into your internal processes.
Dean Ward is the Managing Director of the DCW Group and Founder of DCW Insights, a brand-new due diligence platform which promises to transform the world of property, connecting developers with the information they need at the click of a button. To help you better understand not only why data is so important but how you can uniquely and effectively utilise it as platforms and tech-based solutions continue to evolve, Dean is sharing his expertise. From planning through to project completion, data promises to enrich your results, unlocking efficiency, higher profits and more prosperous relationships with local authorities.
1. Prioritise demographic data and see your profits rise.
‘When planning a development project, it’s important that your properties fulfil a need. If your development responds to the people who reside within the local community, their lifestyles and what they would want to find in a new home, then your project’s success will naturally flourish.
This is one of the most fundamental ways by which data can support developers; by researching demographic insights, for example the average ages of nearby locals, their professions and local average salaries, you’ll create properties that are attractive and enhance the community. This will also mean buyers are more willing to meet your listing price, protecting your profits.
If, for example, you’re overseeing a development in an area largely inhabited by elderly individuals, then you’ll be best placed considering bungalows. Meanwhile, if you’re building in a commuters’ hot spot, you’ll need to consider parking availability and potentially the appeal of apartments for young professionals. Data removes any guesswork from your research and planning, meaning you won’t be left disappointed when properties take longer to sell than expected.
Similarly, by understanding the community and developing properties which reflect their needs, you’ll enhance the reputation of your business; you’ll be seen to care, instead of prioritising financial margins above all else.’
2. Remember, how you interpret data is critical.
‘One important thing I would like to emphasise is that how you interpret data is crucial. You must look at data with completely objective eyes and remember that any data is good data; if it doesn’t adhere with your expectations it might be inconvenient but, nevertheless, this data still needs to be considered. Data doesn’t lie, you must simply consider what it’s telling you and what that could mean for your development. Look at data for what it is and ensure its incorporated into your projections and forecasts.
I would also advise that you invest in tools that assess data for you, alleviating pressure if you’re not sure where to begin or what any given data set means. For example, I’m the Founder of DCW Insights, a due diligence platform which houses all of the data a developer might need under one digital roof; you can access planning information, demographic insights, viability reports and more at the click of a button, saving you not only months of planning time but assistance in evaluating what relevant data means for your project. Technology is here to make our lives easier, don’t ignore it.’
3. Gather your data from reliable sources and enhance your own credibility.
‘By sourcing information from reliable sources, like DCW Insights, your projections and promises will be fulfilled; you’ll have had all the data needed to make accurate forecasts and, as such, you’ll deliver a development that’s high quality, tailored to the needs of the local community and, importantly, on time. This will undoubtedly enhance your own credibility, showing that you’re trustworthy.’
4. You won’t go over budget…
‘Possibly one of the most significant advantages to using data is that it’ll support your project cost control and budgets. You can obtain data surrounding viable development opportunities, land purchasing, financial metrics, contractors and more, whilst using platforms to manage your project with this data in mind.
In doing so, you won’t fall victim to unexpected events and your budget will be adhered to as it’ll have been set with every necessary piece of information in mind.’
5. You can foster long-lasting professional relationships through networking.
‘The benefits of data for developers aren’t solely financial; you can share your own data online, reaping the rewards in turn. More specifically, by embracing platforms with networking services you can highlight your business and areas of expertise, sharing insights into successful projects, opportunities for possible collaborations and more. In doing so, you can foster long-lasting professional relationships, supporting the ongoing growth of your business.
Similarly, DCW Insights fosters relationships with local authorities by sharing important information surrounding upcoming projects and areas for local collaboration; accessing data exposes you to accuracy and opportunity – there really are no downsides.
The benefits of utilising data are never ending for developers and as our industry evolves, there continue to be countless ways by which you can use it. From seeking local data to making your forecasting more accurate and more, data carries many advantages you ought to be utilising.
The overarching message? It’s time to welcome technology into this space, along with all of the timely insights it brings.’
