It can be a challenge to maintain a firm grasp on shifting values in ever-changing Commercial and Residential Real Estate markets, but the cost of a knowledge gap can be dramatic. For investors and organizations with significant Real Estate portfolios, a lack of insight into market values can lead to bad investments or money left on the table. A comprehensive Real Estate Market Analysis using new proptech solutions is critical for filling these gaps.
Real Estate Market Analysis, or the process of analyzing a property or investment opportunity to determine likely value and potential ROI, is crucial to long-term success when working in Real Estate. When performing such an analysis, you want to be data-driven, and given the spatial nature of Real Estate investment, you want the data that you are leaning on to be spatial data.
Most Real Estate Market Analysis involves gaining an understanding of the real-world circumstances around the geographic location of the property in question. Here are the top 5 new spatial data streams that you want to be incorporating as you start your analysis:
A key factor in identifying property investment opportunities is having an understanding of the attributes that make properties of a certain type more (or less) valuable. Often, a major contributing factor is the other businesses, infrastructure, housing, and more that surround the location we are analyzing. It is for this reason that integrating Point of Interest (or POI) data is crucial to analysis, critical when building a Market Analysis solution.
Varied POI datasets can also offer useful attributes which can allow for more granular insight when filtering by factors such as brand name, category (as above) and sub-category, opening hours, and much more. But evaluating distinct POI providers can be time consuming, while the analysis it is needed for can be time sensitive.
POI data is often a jumping off point for enriching with additional data for deeper analysis. Using a location data catalogue like CARTO’s Data Observatory can help you fast-track your journey towards this data, providing it at the spatial scale you need, and eliminating time consuming evaluation and data preparation steps.
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While visualizing POIs near a potential Real Estate investment opportunity can give you a baseline understanding of the area and possible audiences. Point of interest data isn’t providing definitive insights on the potential footfall and traffic that may impact this location.
Human Mobility data from a provider like SafeGraph or traffic information for the roads outside a location can provide a much deeper look at visitor patterns. For commercial Real Estate investment, this can help for predicting sales. For Investors examining a multi-tenant property, it is important to understand traffic, as it can impact desirability.
The above map showcases human mobility data in action, visualizing the aggregated origins and destinations of foot traffic past a local POI. Without this understanding, any Real Estate Market Analysis will be incomplete.
Any successful retail brand or new high rise apartment complex will be working towards a keener understanding of their perfect customer. Maybe they are marketing towards groups from a distinct income band, or at a certain educational level.
Demographic data, taken from sources like a census, can be introduced alongside the above-mentioned POIs and Human Mobility data to understand not just how many people are likely to walk by a prospective storefront, but rather who, in aggregate, those people are.
Aggregated credit card transaction data, generated by hundreds of millions of transactions every hour, is a goldmine of insight when used to enrich analysis. Leveraging a resource like Mastercard Retail Location Insights data, can be a major differentiator when building out a more complete Real Estate Market Analysis framework than your competitors.
This resource has data aggregated at a wide range of spatial scales, that contains details on average purchase price, purchaser origins, and built in demographics, and is filterable by multiple business categories. Putting it to use in your market analysis can add greater depth and detail to building business projections for a potential investment.
Last, but certainly not least, any holistic Real Estate Market Analysis should be leveraging existing housing and parcel data for a complete understanding of property values. This data is often publically available, but may be found in disparate locations, in varying formats, or at inconsistent spatial scales.
And having a resource like CARTO’s Data Observatory available can make introducing these datasets (and datasets from all of the above categories) into your Real Estate Market Analysis easier than ever.
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