|Title||Digital Cities: Real Estate Development Driven by Big Data|
|Publication Type||Working Paper|
|Year of Publication||2018|
|Authors||Donner, H, Eriksson, K, Steep, M|
Urban environments are composed of urban population, urban infrastructure, city governance and commercial markets within cities. The rapid growth of emerging technologies for sensing and communicating data is being leveraged by commercial companies to create digital applications where machine learning applications analyze multiple kinds of data now available from instrumented infrastructure, public and private urban transactions and citizens’ mobility to transform urban environments. This kind of transformation is our view of what enables a “digital city”. Commercial markets are at the heart of this concept, with commercial applications of digital infrastructure rapidly developing, because data from multiple sources are more easily available and analyzed across multiple data layers drawn from different sectors and regions of the city. It is now possible to visualize multiple kinds of outcomes across an entire city and its markets, and to do “What if?” analysis using predictive analytics to generate new insights and financial models across a wide range of vertical urban services. The ability to visualize real time data and insights drawn from that data about the urban environment that surrounds real estate and identify its connection with real estate value provides an unprecedented potential for enhancing real estate development decisions, primarily through better forecasts for building utilization, more accurate assessment of the purchasing power of users of real estate, and by better risk assessment of real estate users. This article presents an analysis of the potential benefits of digital cities for real estate development decision making.