What Is A Property?

What Is A Property?

The concept of “property” seems simple at first glance. However, depending on the application or context, defining “property” can become surprisingly tricky. This article explores why the definition is often debated and how various industries view “property” differently.

What Is a Property? The Basic Definition

In the most straightforward sense, we might define property as:

“A property is a piece of land or building that is owned or possessed by someone or something.”

Seems like a solid definition, right?

But as we dive deeper, we start encountering exceptions.

For instance, does a leasehold count as property? What about a shared office space or a mobile home in a trailer park?

The more we think about it, the more complicated it gets.

Eventually the conversation changes to just simply define everything as a property. That is definitely an option, but it has its own drawbacks. We explain why.

Why Defining Property Is Complex

When everything is labeled as a “property,” things can get muddled.

The challenge with a broad definition is that it makes understanding specific attributes harder, which can cause issues when integrating property data across platforms or use cases.

Attempting to obtain a deep understanding of a property when everything is a property would be difficult.

Let’s break down a few of these challenges:

  • Data Integration Issues
    Integrations to other data sets is extremely difficult taking this approach, as the definition is quite fluid and can lead to inconsistent results.
    For example, one data set may contain data on a granny flat and another on a main dwelling on the same parcel of land.
    An address match used to link the two data sets will mean attributes from the granny flat will be added to the main dwelling, which isn’t correct.
  • Over-classification
    Imagine you’re dealing with multiple addresses for the same building or property, such as an apartment building with different unit numbers—should each be considered a separate property, even if there’s only one main building? You could accidentally treat each address as a separate property, even though they all belong to the same main building.
    A broad definition could lead to over-counting properties, skewing your data.

Context Matters: Defining Property Across Industries

The way we define property depends heavily on the context. Here are a few examples:

  • In banking
    In mortgage applications, “property” refers to the real estate that is used as security for the loan. Banks focus on its value, legal ownership, and physical condition because these factors determine how much they can lend. This contrasts with other banking activities, where property may be viewed more generally as an asset without the same level of detailed scrutiny or long-term interest in its specifics.
  • In the legal context
    The definition of “property” often extends beyond just physical assets like land or buildings. According to the Australian Law Reform Commission (ALRC), property can be described as a bundle of rights—a legal construct that gives someone control over the use, enjoyment, and disposition of a certain asset. This means property doesn’t just refer to physical ownership but includes rights to lease, sell, or inherit that asset.
  • In vacation rentals
    On a website like Airbnb, a property could be anything from a private room to an entire villa, or even a yurt!
  • In hotels
    For accommodation platforms, each hotel itself may be considered one property, even if it contains multiple rooms for rent.
  • In government data
    Government data systems define property in different ways through a combination of spatial, legal, economic, and usage-based attributes to support various administrative, planning, and statistical functions.

There’s no universal definition of property, but aligning the term to the needs of your business and customers is critical.

Tips for Defining Property in Your Data

When defining what constitutes a property in your business, here are a few key things to keep in mind:

  • Avoid overly broad definitions
    The wider your definition of property, the harder it will be to capture detailed information. Try to be specific.
  • Ensure integration flexibility
    If you plan to use third-party property data, ensure your definition allows for easy data integration.
  • Align with common property concepts
    Typically, property data revolves around parcels, titles, addresses, or buildings. Ensure your definition aligns with one or more of these. For more in-depth guidance on property data, read our post on the differences between parcels, titles, addresses and addresses.
  • Carefully handle third-party data
    When integrating external property data, verify that the definitions are compatible or identify any differences early to avoid data issues.
  • Consistency is key
    Ultimately, the definition of a property will vary depending on your industry, business needs, and customer expectations. What matters most is consistency—once you define what “property” means to you, apply it consistently across all of your data handling processes. Inconsistencies can lead to misinterpretations and poor business decisions.

Originally published: 26 July 2023

Last updated: 23 September 2024

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What’s The Difference Between Proptech and Contech?

What’s The Difference Between Proptech and Contech?

In real estate and construction, proptech and contech have emerged in more recent years with the potential to disrupt and digitise.

These technologies are driving innovation across industries, yet they each serve distinct roles.

We uncover the nuances and distinctions between proptech and contech here.

Defining Proptech and Contech

Proptech

Proptech is the broad umbrella term encompassing all digital innovations that enhance and streamline processes within the real estate industry.

It covers everything from property management and transactions to marketing and customer engagement.

While its reach can extend to the construction phase of property development, proptech’s focus is on optimising the entire lifecycle of real estate—from conception to management.

Here are examples of startups and more established proptech companies making waves in real estate:

  • Archistar specialises in AI-driven architectural design and property analytics, helping developers and architects assess building potential.
  • Propic uses AI and machine learning to enhance real estate processes such as sales, property management and customer service automation.
  • Little Hinges specialises in digital property marketing solutions with virtual property tours, floorplans, virtual staging, global platform and an Insights portal.
  • Equiem provides tenant engagement technology for commercial real estate, focusing on improving communication and services between landlords and tenants.
  • CoreLogic, a provider of financial, property, consumer information services known for their comprehensive real estate data services, is also a leading player in AI-powered housing data and analytics.
  • AirBNB is well known as a short-term rental platform, however, Airbnb’s disruption and influence on the traditional property management and rental markets has defined its role in the proptech sector.
  • Zillow is a comprehensive platform connecting renters, buyers and sellers to facilitate seamless transitions into their dream homes.

Contech

While proptech may briefly address construction, contech is solely focused on the construction process, providing solutions that improves safety, efficiency and/or precision on the job site. In general, it refers to the technologies that directly impact the planning, design and building of structures.

Here are some notable contech companies making an impact on the construction industry:

  • Autodesk is known for their Design and Make Platform for planning, design, construction and project operation.
  • Procore’s cloud-based construction management platform streamlines every process from pre-construction to closeout.
  • Built Robotics has a mission to build the robots that build the world.
  • Rhumbix is a software company which consolidates and digitises field reporting workflows into one app.
  • Matterport is a spatial data company focused on digitising and indexing the built world with their all-in-one 3D data platform.
  • cmBuilder offers 4D construction site logistics with fast & easy cloud-based workflows, powerful sequencing simulation capabilities, and unparalleled real-time collaboration.

Key Differences Between Proptech and Contech

Scope of Application:

  • Proptech covers a broad spectrum of digital tools and platforms used across the real estate industry, including everything from smart property management systems to online marketplaces that simplify buying, selling, and renting properties.
  • Contech is focused on the construction phase of property development. It involves tools and technologies that assist architects, engineers and builders in creating physical structures, from advanced construction materials to innovative design software.

Target Audience:

  • Proptech primarily targets real estate professionals, including developers, property managers, realtors, investors, and tenants. Its tools are designed to enhance customer experiences, streamline transactions and provide valuable market insights.
  • Contech caters specifically to construction professionals—architects, contractors, engineers, and construction workers— with a focus on improving the efficiency, safety and/or quality of the construction process.

Technological Impact:

  • Proptech typically integrates technologies such as Big Data, Artificial Intelligence, Virtual and Augmented Reality, IoT and Blockchain. These innovations have the power to transform traditional real estate practices, offering smarter, more efficient ways to manage properties, conduct transactions and interact with clients.
  • Contech typically leverages technologies like Building Information Modeling (BIM), prefabrication, robotics, drones or wearable tech. These tools are generally designed to enhance and optimise the construction process, reduce risks and improve productivity on-site.

Proptech and Contech: Better Together

While proptech and contech operate in different domains, their intersection is where the magic happens.

Proptech’s digital solutions often complement contech’s innovations, creating a seamless flow from project planning and construction to property management and sales.

For instance, a real estate developer might use contech to design and build a property, then rely on proptech platforms to market, lease or sell the units.

Proptech and contech both offer powerful tools that drive efficiency, safety and profitability in real estate and construction.

By leveraging these technologies, professionals can navigate industry complexities with greater agility and success.

At The Proptech Cloud, we believe in the game-changing power of both proptech and contech.

Together, they’re reshaping the future of real estate—one innovative solution at a time.

 

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What is a Coordinate Reference System (CRS)?

What is a Coordinate Reference System (CRS)?

TL;DR

A Coordinate Reference System (CRS) is a framework that uses coordinates to accurately locate places on Earth’s surface.

In real estate, CRS is crucial for defining property boundaries, aiding in surveys, mapping, and even in property valuation.

There are different types of CRS, each serving specific mapping needs.

For property and urban planning, CRS ensures precise land registration, zoning, and infrastructure development, helping reduce disputes and enhance planning accuracy.

Imagine you’re taking part in a global treasure hunt or a real-life challenge like The Amazing Race, where the Earth itself is your game board. To navigate to your next destination, you rely on a giant map. But how do you know where exactly to go? You need a set of rules to interpret the map accurately and describe specific locations.

This is where a Coordinate Reference System (CRS) comes in.

Think of CRS like a universal language for maps, providing a framework for assigning coordinates (like X and Y on a grid) to different locations on Earth.

With this system in place, everyone can refer to the same locations using a consistent method, ensuring clarity and accuracy when navigating or sharing geographic data.

Let’s dive deeper into what a CRS is and why it’s essential for interpreting the world around us.

Coordinate Reference System (CRS)

A Coordinate Reference System (CRS) is a system that uses numbers to precisely pinpoint locations on maps or the Earth’s surface, ensuring everyone uses the same rules for describing positions.

By defining sets of coordinates and a standardised framework, it offers a consistent way to specify locations, making it possible for maps and geographic data to be accurately interpreted and shared.

A CRS typically includes a reference point, a set of axes, and a unit of measurement.

What is a CRS used for?

A Coordinate Reference System (CRS) is used to accurately represent, map, and interpret coordinates in a specific geographic or projected space. It enables precise location referencing on the Earth’s surface, ensuring that geographic data can be shared and understood consistently.

CRS is widely used in geography to study the Earth’s physical features, environments, and human interactions with these landscapes. It’s also crucial in cartography, where it ensures that maps are created with accurate geographic information, allowing for reliable navigation and analysis across various fields and applications.

Different Types of CRS

  • Geographic CRS: Based on a spherical or ellipsoidal model of the Earth’s surface, commonly using latitude and longitude coordinates.
  • Projected CRS: Maps the three-dimensional spherical or ellipsoidal Earth onto a two-dimensional plane, such as a map or a flat surface. Examples include Universal Transverse Mercator (UTM) and State Plane Coordinate Systems.
  • Vertical CRS: Specifies elevations or depths relative to a reference surface (e.g., sea level).

Some examples of commonly used CRS include:

Practical applications of CRS in property and real estate

Coordinate Reference Systems (CRS) play a vital role in real estate and proptech by providing a standardised way to accurately represent geographic locations. Here are some practical applications:

Property Mapping and Visualisation

  • CRS allows for exact delineation of property boundaries, and accurate property boundaries are essential for legal and planning purposes.
  • CRS can be used by proptechs to create interactive property maps, allowing users to explore listings in a spatial context.

Location-Based Services

  • CRS can be used to calculate distances between properties and amenities like schools, parks, or public transport for proximity analysis.
  • Create virtual boundaries, or geofences, around properties for targeted marketing or notifications.

Urban Planning and Development

  • Ensure new developments comply with local zoning regulations by accurately positioning them within zoning maps.
  • Precise spatial data derived from CRS can be used in the planning of utilities and infrastructure for new real estate developments

Property Valuation

  • Accurately analyse and compare property locations, boundaries and size, and their impact on value.
  • Determine a property’s elevation and proximity to flood zones for risk assessment and insurance purposes.

Virtual and Augmented Reality

  • Virtual property tours are possible with the creation of georeferenced 3D models of properties.
  • Overlay property information on real-world views using mobile devices for use in augmented reality applications.

Data Integration and Analysis

  • Combine property data with other geographic information like demographics, crime rates, or environmental data for comprehensive analysis.
  • Perform complex spatial queries to identify properties meeting specific geographic criteria.

As can be seen in these examples, by leveraging Coordinate Reference Systems, real estate professionals and proptech companies can provide more accurate, data-driven services and make better-informed decisions based on spatial relationships and geographic context.

Originally published: 4 October, 2023

Last updated: 12 September, 2024

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The Property Lifecycle

The Property Lifecycle

Discover the property lifecycle and how it brings together various sectors such as government, legal, construction, finance, and insurance, while connecting a wide range of professionals.

This infographic offers a high-level overview of the key phases and processes.

The Property Lifecycle Infographic

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Why Is It So Difficult To Parse Addresses?

Why Is It So Difficult To Parse Addresses?

Precise address data is fundamental to a multitude of services.

The ability to accurately dissect and interpret address components is important for the accurate delivery of mail, managing customer databases, integrating geographic information systems and more.

This blog explores what address parsing is and why it presents such unique challenges.

Discover the intricacies behind making sense of seemingly simple address data and why getting it right is more complicated than it first appears.

TL;DR

Address parsing involves breaking down addresses into their individual components (like street name, city, state, and postcode/ZIP code) to make them understandable for computers.

It’s challenging due to variations in address formats, international differences, ambiguous elements, complex building details, and lack of standardisation.

Despite these difficulties, commercial address parsers achieve high accuracy, and emerging machine learning techniques offer potential for developing custom solutions.

What is Address Parsing?

In essence, address parsing is breaking down and identifying the individual components of an address to make it more understandable and usable for computers. This process ensures that each part of the address is correctly identified, interpreted and standardised for greater accuracy in subsequent applications.

Let’s take a letter that you receive in the mailbox.

On the front, there’s a block of text with your name, street address, city (or suburb or town), state, and postcode (or ZIP code). All these combined tell the postman where to deliver the letter.

Now, let’s say you have a robot assistant, and you want to teach it to understand and organise this information.

You’d instruct the robot to recognise the different parts of the address: This part is the person’s name. This is the street they live on. This part tells us the city, and so on.

Address parsing is like teaching the robot to recognise and separate these individual parts of the address. So, instead of seeing one big block of text, the robot (or computer program) sees the address as different pieces of information:

  • name,
  • street,
  • city,
  • state, and
  • ZIP code/postcode.

This helps computers and software understand and manage addresses more efficiently, just like how you can easily tell apart the street name from the city when you look at the address on a letter.

Why is Address Parsing Difficult?

Address parsing is difficult because addresses vary greatly in format and structure, both within and across countries. Ambiguous elements (e.g., “St.” for “Street” or “Saint”), complex building details, misspellings and multiple languages add to the challenge.

Additionally, addresses often change due to renaming or updates, and there is very little standardisation in how people enter addresses.

These factors make it hard to create a parser that can accurately interpret all possible address variations.

These are some examples that demonstrate the complexity involved. 

Example 1

Address = 64 YORK STREET SYDNEY NSW 2000.

  • 64 = Street number,
  • YORK = Street name,
  • STREET = Street type,
  • SYDNEY = Suburb,
  • NSW = State,
  • 2000 = Postcode

Done, why do people tell me it is difficult….?

 

Example 2

Address = 6/64 THE BOULEVARDE STRATHFIELD NSW 2135

  • 6 = Unit number
  • 64 = Street number
  • THE = Street name
  • BOULEVARDE = Street type
  • STRATHFIELD = Suburb
  • NSW = State
  • 2135= Postcode

Wait, the street name is “THE”?
It should be the “THE BOULEVARDE”!
Boulevarde is a street type as well, but not in this instance! We need a rule for that!

 

Example 3

Address = WTC BLDG A / TWR 4 MATTHEW FL LEVEL 1 18-38A SIDDELEY ST, DOCKLANDS VIC 3008

This address is significantly more difficult to parse than previous examples, however the address still includes many prefixes that can assist with parsing.

It is not uncommon for many of these prefixes to removed to look more like this address:

Address = WTC A / TWR 4 MATTHEW 1 18-38A SIDDELEY ST, DOCKLANDS VIC 3008

Without the BLDG and LEVEL prefixes, we now have additional complexity to deal with.

Challenges with Address Parsing

  • Variability in formats
    Addresses can be written in numerous formats.
    For instance, “123 Maple St. Apt 4B” and “Apt 4B, 123 Maple Street” represent the same location but are formatted differently.
  • International differences
    Different countries have different address structures. What’s common and straightforward in one country might be unusual in another. For instance, some countries might include districts or regions in their addresses, while others don’t.
  • Ambiguous elements
    Some parts of an address can be confused for others.
    For instance, “St.” could be short for “Street” or “Saint.”
    Without context, determining the correct interpretation can be tough.
  • Complex building details
    Addresses can have complex unit numbers, building names, floor numbers, and so forth.
    Parsing these details correctly, especially when they’re in non-standard formats, can be difficult.
  • Misspellings and typos
    People often make mistakes when entering addresses. A parser needs to be robust enough to handle and possibly correct common misspellings or recognise when an address might be invalid.
  • Multiple languages and scripts
    In multilingual countries or regions, addresses might be written in different languages or scripts. Parsing these requires the program to be aware of multiple linguistic structures.
  • Historical changes and inconsistencies
    Cities change, streets get renamed, postal codes get updated. An address parser needs to be updated regularly to account for these changes, or it should be robust enough to recognise and possibly map outdated addresses to their current counterparts.
  • Abbreviations and Synonyms
    There are multiple ways to refer to the same thing in addresses. For example, “Avenue” might be written as “Ave,” “Av,” or “Avnue.” A parser must recognise all these variations as referring to the same concept.
  • Lack of standardisation
    Unlike some data types where a strict format can be enforced, addresses are often entered by users who have no idea about the backend system’s preferred format.
  • Embedded information
    Sometimes, addresses can contain extra information that’s not strictly part of the address but is crucial for delivery, like instructions or landmarks.
Address block on a letter

Is Accurate Address Parsing Possible?

Most commercial address parses achieve parsing accuracy at a rate of 97/98%+.

They achieve this through constant development, testing and refinement of their software over many years.

Is it possible to build your own address parsing solution and achieve similar results?

Maybe.

New capabilities and accessibility of machine learning algorithms mean self-developed address parsing solutions may be able to produce results that are acceptable for your use case. But it is worth noting, the solution won’t be easy to develop and there will be inaccuracies. You should carefully weigh up the effort to develop an address parsing solution vs buying a solution off the shelf.

 

Address Parsing Software Providers

Australia:

  • Geoscape Australia: Provides geospatial data solutions, including address parsing and geocoding for Australian addresses.
  • Precisely: They offer global solutions, including for Australia, in the realm of data quality and address management.
  • Equifax Australia: Offer address cleansing and geocoding solutions.

USA:

  • SmartyStreets: Offers address validation, geocoding, and parsing primarily for the U.S. but also internationally.
  • Melissa Data: Provides data quality solutions, including address validation, correction, and parsing for the USA and other countries.
  • Pitney Bowes: Global solutions, including for the U.S., in data quality and address management.

Canada:

  • Canada Post: Their AddressComplete solution provides parsing, validation, and autocomplete for Canadian addresses.
  • DMTI Spatial: Offers Canadian geospatial data solutions, which include address parsing and validation.

UK:

  • PCA Predict (Loqate): Provides address lookup, validation, and parsing solutions predominantly for the UK but also globally.
  • Allies Computing: Their PostCoder web service offers address lookup and validation for the UK and other countries.
  • Royal Mail: They have solutions for address validation and parsing for UK addresses.

It’s worth noting that many of these providers offer services for multiple countries, not just the ones listed under their respective headers. For example, a company that provides services in the USA might also cater to UK or Australian addresses.

When considering an address parsing provider, it’s essential to check if they cover the specific regions and countries you need, and if they offer the depth of functionality (e.g., address validation, geocoding, etc.) that your project requires.

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How Proptech Is Revolutionising Real Estate

How Proptech Is Revolutionising Real Estate

Real estate, the world’s largest asset class, valued at a staggering $7.56 trillion, has long been a sleeping giant when it comes to technological innovation. But now, it’s waking up. Recent years have witnessed an unprecedented surge in proptech.

What is Proptech?

PropTech is short for Property Technology which, as its name suggests, is the dynamic intersection of property and technology.

Broadly, it refers to the innovative use of technology in the real estate industry and covers a wide range of tech solutions and innovations aimed at disrupting and digitising various aspects of the real estate sector, including property management, leasing, sales, construction, investment and others.

Proptech tackles key issues in how we use and benefit from real estate. It’s already streamlining processes and transactions, creating new opportunities, addressing pain points, cutting costs, enhancing connectivity, productivity and boosting convenience for residents, owners, landlords and other stakeholders.

Why the Surge in Proptech?

Several key factors have contributed to the rapid rise of proptech. The COVID-19 pandemic significantly accelerated the need for virtual, no-touch experiences, driving technological innovation across the sector.

Technological advancements with practical applications in real estate have also played a crucial role. Examples of innovations include:

  • Virtual Reality (VR) and Augmented Reality (AR) enhancing property viewing experiences.
  • Artificial Intelligence (AI) and Machine Learning (ML) providing data-driven insights and personalised recommendations.
  • Internet of Things (IoT) enabling smart home features and efficient property management.
  • Blockchain Technology allowing fractional property ownership, offering new ways for buyers and sellers to connect and potentially cutting costs by removing intermediaries out of the transaction process.
  • Drone Technology offering virtual tours and aerial views,

Increased connectivity and the availability of real estate data, have improved customer experiences and enabled faster, more informed decisions in real estate transactions, planning and development.

Regulatory changes have also revolutionised the way real estate operates.

Regulatory changes serve as a catalyst for proptech innovation. By creating new challenges and setting higher standards, regulations drive the development of advanced technologies and solutions that help businesses comply, operate more efficiently, and enhance their services. This continuous push for innovation ensures that the real estate industry evolves to meet modern demands.

The pressing issue of housing affordability has spurred creative approaches to real estate ownership and investment too. Proptech and financial technology (fintech) are democratising property investment, making it more accessible through crowdfunding platforms, fractional ownership, and Real Estate Investment Trusts (REITs).

The potential for disruption and innovation in the real estate sector has attracted significant investor interest. Corporate venture capital units and accelerator programs further support and fast-track proptech startup funding.

Proptech’s Potential to Reimagine Real Estate

Proptech has gained significant traction in recent years as real estate professionals and investors recognise the potential of technology to disrupt.

According to PropTechBuzz, hundreds of Australian proptech startups are leveraging the power of advanced technologies like big data, AI, AR and generating over $1.4 billion of direct economic output.

Yet, we are only on the cusp of proptech’s true potential.

Signs show that this fledgling industry has yet to reach its pinnacle.

A recent Deloitte survey Global Real Estate Outlook Survey of real estate owners and investors across North America, Europe, and Asia/Pacific reveals:

  • Many real estate firms address years of amassed technical debt by ramping up technology capabilities. 59% of respondents say they do not have the data, processes, and internal controls necessary to comply with these regulations and expect it will take significant effort to reach compliance.
  • Many real estate firms aren’t ready to meet environmental, social, and governance (ESG) regulations. 61% admit their firms’ core technology infrastructures still rely on legacy systems. However, nearly half are making efforts to modernise.

Barriers to progress still exist.

A survey of 216 Australian property companies from 2021 by the Property Council of Australia and Yardi Systems show that

  • There is the perception that solutions must be specially developed or customised (34%).
  • 26% of respondents see changing existing behaviours as the biggest obstacle to overcome, followed by cost (23%) and time constraints (11%).

The Future of Proptech

The future of proptech is looking bright.

As new technology, trends, and other contributing factors converge to accelerate innovation in the real estate (and its neighbouring) sectors, new ideas take flight and promise to disrupt traditional processes.

Proptech brings exciting benefits, boosting the real estate industry’s digital presence, productivity and enhancing experiences for everyone involved.

It fosters innovation and automation, adding convenience, efficiency, transparency and accuracy to administrative and operational tasks.

Additionally, proptech holds the promise of better access to data and analytics and the integration of sustainability practices.

As technology continues to advance and consumer preferences evolve, proptech is likely to play an increasingly prominent role in shaping the future of the real estate industry.

Proptech revolutionising real estate

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The Three Primary Methods of Real Estate Data Integration

cLearn the three primary methods of real estate data integration—geospatial relationships, title matches, and address matching—to improve accuracy, insights, and decision-making.

What’s the Difference Between GDA94 and GDA2020?

Geodetic datums, or geodetic systems, are often used by proptechs. Here is a rundown of everything you need to know about the different geodetic datums we use and reference in Australia.

Alternative Data: What Is It, Who Uses It And Why It Matters

Discover the powerful intel alternative data can offer. Learn why businesses and investors are turning to non-traditional data sources for deeper insights and smarter decisions.

What Is A Geohash And How Is It Used?

Discover what a geohash is, how it works, and its real-world applications in mapping, logistics and data analysis.

What Is A Cadastre?

Learn how cadastres capture property boundaries, ownership details, and values, and see how technology is transforming them with 3D models, GIS and digital platforms.