Description and Analysis of Economic Efficiency of the Real Estate Model Transformed in the Framework of Digitalization

Abstract

Today, digital technologies are increasingly becoming an integral part of our life. In business, they help to improve the efficiency of current business processes by creating new business models and more ways to attract customers. The purpose of the study is to describe the real estate model transformed under digitalization and analyse its economic efficiency. The data was collected through personal interviews with executive managers of real estate companies in Russia. The paper describes a new real estate model that reduces dependence of real estate agencies on agents. Its establishment was made possible due to the emergence of digital technologies and digital tools and their introduction into our everyday life as well as the business sector. The paper also presents stages of work in a real estate agency, defines parties responsible for each stage and lists digital technologies and tools. Moreover, in the paper, the new business model is compared to the classical one based on their characteristics. Some preconditions for the new model are determined, and its flaws are described. Social consequences of innovations in the real estate sector are defined. The economic efficiency of the model is calculated and used as an indicator of its high potential capacity for real estate. The paper might be useful for real estate entrepreneurs or other businesses with great dependence on key personnel responsible for interacting with customers.

Comparison of prices depending on factors in the secondary housing market

“…-The value of the MAPE model was 11%, which is less than the error characteristic of the models for mass valuation of real estate [14].…”