BIM for Real Estate, BIM in Real Estate, BIM Services

Cresire
May 9, 2022

Discover 4 Key Benefits of BIM in Real Estate for Developers and Management. Leverage Technology for Smarter, Efficient Projects.

Introduction

The use of BIM in Real Estate development is becoming quite common in the construction industry. BIM in Real Estate is efficacious for developers in meeting their clients’ expectations and for overcoming challenges faced during the pre-construction and construction phases.

Many professionals use BIM for Real Estate and facility managers for effective cost planning and operations of a built asset.

This detailed blog examines the need for adopting BIM in Real Estate by developers and its importance in the design development and the construction stages.

BIM for Residential Real Estate Developers and BIM for Corporate Real Estate demands comprehensive strategy in a collaborative 3D virtual environment that leads to effective planning and implementation of a construction project.

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BIM In Real Estate – Making A BIM-Fit Development

Real estate is remunerative yet a time-consuming and responsibility-driven job. From land acquisition to property handover, real estate developers have many responsibilities in many sectors.

Before we examine the use and the benefits of BIM in Real Estate and BIM property management.

Key Responsibilities of Real Estate Development Companies and Professionals

The initial step is to secure Finances from the investors for the construction and lifecycle/maintenance of the built asset. In which a real estate company is required to deliver the master plan of the project to secure the trust of an investor
Operations and Maintenance costs must be incorporated in the cost analysis. A real estate developer must accordingly secure the finances before the construction
Developing Conceptual Designs through an architect for delivering conceptual plans such as built-up area, super built-up area, and project specifications to investors and customers
Customers must be Well Informed about the project’s progress and new developments. Any changes in the agreed design must be approved by the customer before implementing them on-site
Developing Marketing and Advertising materials such as 3D renders, realistic images, and walkthroughs for providing an insight into real construction to customers and prospects
Offering Affordable Prices to the customer to generate revenue to pay back the investors & project stakeholders, maintain operational costs, and make profits
Considering Sustainability Measures for keeping a greener and safer environment

A BIM-fit real estate development allows pragmatic planning of a construction project and extracting better cost, time, quality, and sustainability value.

Every investor would like a great strategy and certainty that the project will generate good profits.

Flow Chart - How Real Estate Developers can Generate Value using BIM in Real Estate

BIM In Real Estate For Overcoming Challenges In Pre-Construction And Construction Stages

Real estate companies face challenges in making investment decisions, design errors, cost overruns, and lifecycle and maintenance for a built asset.

It promotes advanced strategies and tools that help real estate companies’ employees in making smart cost analyses for construction and lifecycle as well as developing an error-free design, hence controlling major cost & time overruns of construction projects.

Common Challenges Faced By Real Estate Companies

1. Design Defect Losses

Design defect losses generally occur due to a lack of coordination between the architect, engineers, and project managers or simply due to miscalculation of structural load and reinforcement that leads to re-design and re-construction on site.

Many times, Architects maintain professional liability insurance to protest such errors. However, such errors can surpass the limit especially when projects worth over $50 million are concerned.

Using BIM in real estate development and construction is a very effective way for avoiding design defect losses.

2. Investment Decisions

A real estate developer has to consider several investments for which a pragmatic cost analysis is essential. Once invested inland, a real estate developer has to consider the construction, administrative and operational costs of a built asset.

Managing so much information of high-budgeted projects becomes quite challenging; which leads to inaccurate management and investment strategies that in turn leads to disputes, re-planning, and delays.

3. Cost Overruns

Construction cost planners usually follow a thumb rule by adding 15-20% of the overall project’s cost as cost overrun.

Often due to lack of strategies, bad investment decisions, redesigning and rebuilding, the estimated cost surpass the project budget, leading to cost overruns. Using BIM in real estate development and construction is a very effective way for avoiding cost overruns.

4. Lifecycle And Maintenance

The lifecycle and the maintenance costs are often not incorporated in the post-construction strategy. This incurs unplanned responsibilities and additional costs to the building owners and the managers.

Poor maintenance of a built asset leads to carbon emissions, which brings sustainability concerns for a real estate developer.

We will discuss the benefits of using BIM in real estate and BIM for real estate and facility managers in the next section of this article.

Benefits Of Using BIM In Real Estate

1. Evaluating Project Costs

BIM in real estate plays a significant role in developing precise construction, operational, and lifecycle cost estimates. Using 3D Architectural, Structural, and MEP building Revit models, Building Information Modeling (BIM) can be used to achieve 4D, 5D, and 6D stages.

5D BIM for property development: It allows the generation of precise bill of quantities (BOQ), helping real estate developers to evaluate their expenditure
6D BIM for corporate real estate: It allows integration of asset information such as warranty and expiry details for assessing future maintenance costs
BIM for real estate and facility managers, in general, helps incorporate administrative and lifecycle costs for asset performance analysis.

2. Forecasting Risks

Project planning and on-site construction are prone to risks. Real estate developers need to forecast risks to take appropriate steps for mitigation.

Here Is How BIM In Real Estate Eliminates Risks Associated With Projects:

Using 4D Scheduling Services, allows real estate developers to plan construction timeline, risk management, and site operations
BIM virtual technologies help developers to collaborate with the design team more effectively, leading to a more coordinated design
Identify and eliminate possible defects in architecture, structure, and MEP designs using BIM Clash Detection Services.

3. Marketing and Advertising Using BIM In Real Estate

Real estate developers usually provide a fair price to their customers. However, due to the competition in the market, marketing and advertising become critical to attracting potential customers.

This Is How BIM In Real Estate Allows Developers With Marketing And Advertising:

Implementing BIM in real estate projects allows real estate developers to position themselves better than their competitors; as they are using the most advanced techniques for design development and project management
Realistic 3D rendering services of BIM models can be used as great marketing material on social media, posters, and other online platforms
Walkthrough of a built-asset with comprehensive architectural, interior, structural, and MEP details provides trust to the customers as they know what they are investing in
Using BIM Clash Detection Services to eliminate design errors brings trust for the timely and well-planned completion of a construction project.

4. Stakeholder Management

Beyond effective design development, marketing & advertising, and forecasting risks, using Real Estate BIM promotes collaboration and coordination between project stakeholders.

There are several cloud-based software such as A360/BIM360. That provides a common data environment (CDA) to BIM for real estate developers, architects, engineers, project managers, and other stakeholders for design development from the conceptual to the detailed design stage.

Using BIM 360, project stakeholders can review and comment on design development. The changes are easily recorded by the required project stakeholders using BIM 360. This provides better control over the project stakeholders and promotes effective management.

Future of BIM in Real Estate

The future of BIM in the real estate industry promises to be transformative, revolutionizing the way we design, construct, and manage buildings. BIM, a digital representation of a building’s physical and functional characteristics, is already making significant waves, and its potential is poised to soar in the coming years.

One key aspect of BIM’s future in real estate is its role in enhancing collaboration and communication among stakeholders. BIM enables architects, engineers, contractors, and owners to work seamlessly together, reducing errors and improving project efficiency. This collaborative approach ensures that all parties have access to up-to-date information throughout a building’s lifecycle.

Furthermore, BIM’s integration with emerging technologies like augmented reality (AR) and virtual reality (VR) is set to revolutionize property marketing and sales. Potential buyers can take virtual tours of properties, visualizing spaces in a more immersive and interactive way. This not only streamlines the decision-making process but also minimizes costly design changes post-construction.

Sustainability is another driving force behind BIM’s future in real estate. BIM can help optimize energy usage, reduce waste, and assess the environmental impact of a building. As sustainability becomes increasingly important, BIM will play a pivotal role in achieving green building standards and certifications.

The future of BIM Real Estate holds great promise. It will foster collaboration, enhance marketing efforts, and promote sustainable building practices, making it an indispensable tool in shaping the next generation of real estate projects.

Frequently Asked Questions - FAQs

What does BIM mean in Real Eestate?

BIM in real estate stands for “Building Information Modeling,” a digital approach to the design, construction, and management of buildings.

What is BIM in House Construction?

BIM in house construction stands for “Building Information Modeling,” a digital process that enhances the planning, design, and management of residential building projects.

What is BIM for Contractors?

BIM for contractors refers to “Building Information Modeling,” a digital tool aiding construction professionals in project planning, coordination, and efficiency.

What are the 4 stages of BIM?

The 4 stages of BIM are:

Schematic Design
Design Development
Construction Documentation
Facility Management and Operations.

What is BIM in Management?

BIM in management is “Building Information Modeling” applied to facility management, using digital data for efficient operation and maintenance of buildings.

How does BIM help Facilities Management?

BIM aids facility management by providing digital data for streamlined operations, maintenance, and decision-making, enhancing efficiency and cost-effectiveness.

BIM in Real Estate: 4 Benefits That Developers Can Leverage