Big Data and Real Estate Market

Identifying the best areas to invest in, knowing what type of property is in demand in each area, whether you are looking for more rentals or sales, homes or offices, or in which segments of the population there is more demand for each type of property, is part of what can now be analyzed using modern Big Data techniques.

Friday, August 30, 2019

The real estate market is not alien to the new reality focused on analyzing large volumes of information and making business decisions based on data.
More and more alternatives are available to developers, consultants, real estate investors and real estate marketing agencies.

For example, as the real estate portal infocasas.com.uy points out, "... Developers no longer drive projects based on what they "think" can be profitable. Today they have accurate data to detect market trends and demand needs. A developer can know exactly which are the best areas to invest in, what type of property is in demand in that area, if you are looking for more rentals or sales, housing or offices, in what age group there is more demand for that type of property."

"... Data analysis gives much stronger forecasting power than a decade ago. The ability to anticipate change enables investors to plan their investments based on objective data and not perceptions, reducing financial risks and obtaining higher returns. You don't have to be a great investor to harness the power of Big Data projection." See full article here.

In CentralAmericaData we have developed feasibility studies of real estate projects using data mining techniques, both in cities in Central America and in Mexico.

One of our clients, a real estate development company, needed to evaluate the feasibility of a vertical housing project in a city in Central America. Using public and private sources of information, we prepared a study that included: analysis of the commercial and industrial environment; population and demographic characteristics, floating population, commercial and industrial environment, and vehicle fleet, trends and preferences of people seeking to buy residence, inventory, absorption rates, characteristics of demand and analysis of available housing supply.

Based on the information, different feasibility scenarios were presented, which included a sensitivity analysis and the modeling of demand according to price per square meter.



More on this topic

Heat Maps for Real Estate Investments

December 2021

Mobility analysis and geomarketing techniques have become key factors in the real estate investment process.

In the process of searching and selecting areas for the acquisition of a property for real estate development, investors focus on finding those with the highest expected return on investment.

Location Analytics in the Real Estate Market

September 2021

This analysis enables real estate companies to make data-driven decisions on issues that define the success of a real estate business, from acquisitions, leasing, investments to marketing campaigns and operational processes.

Location analytics provides an unprecedented vision of the real estate market, analyzing real-time mobility data such as foot traffic, makes it possible to know the updated prices of economic areas and properties of interest, the development of construction processes, to optimize the real estate agents work routes, identify risk areas, etc.

Predictive Modeling: The New Real Estate Journey

August 2021

Predictive analytics has transformed the real estate industry due to its powerful ability to deliver fast and accurate actionable insights. This has largely come about through the advent of Big Data and Geographic Information Systems (GIS) that harness the intrinsic power of real estate data.

Predictive analytics tools take this analysis to the next level to predict future outcomes based on how past and present events occurred. Consumer demographics, housing trends and property price history are some of the areas where predictive analytics represent a huge opportunity for the industry.

Geospatial Data for Real Estate Market

June 2021

Through solutions based on the analysis of satellite photos and machine learning models, it is possible to optimize the process of identifying the best land uses and analyze the areas where a construction project will be developed with a high level of detail, in order to find the optimal location and minimize investment risks.

The accelerated growth in the availability of data and the solutions and technologies being developed to take advantage of it is directly impacting all industries, and the real estate and construction industry is no exception.

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