Are you planning to change your product to meet the demand transformation?
DT: The Fincase analytical department has launched a comprehensive study that will analyze real estate market changes related to coronavirus: the dynamics of market indicators based on big data and new consumer preferences. We will also conduct expert interviews with the market leaders. Based on the results of the study, we will understand what data is needed to improve the system.
According to Knight Frank, in recent months, the situation of uncertainty has led to a rush in the market of high class housing (A- and B-classes). In these segments, sales growth was 10% and 40%, respectively. Among upscale residential complexes, investment-attractive properties are those with a small volume of supply, unique in terms of location and product. The obvious advantages of such housing further underline the importance of the characteristics brought to the fore by the pandemic. For example, the ability to walk in your own square, water and air purification, apartments with terraces and bay windows. Security, privacy, limited access, provision of the necessities directly at the location are the characteristics that will only increase the attractiveness and cost of the premium housing over time.
Another example is that after self-isolation it is important to have an isolated yard or a park area nearby, which can directly affect the cost. As soon as we get the confirmation of this hypothesis, we will add it to the adjustments when comparing analogues. In doing so, the adjustments for current indicators may change, and their value may become lower.
Our task is to study the market from the point of view of demand, identify new factors, update data with this in mind, and, based on this, change the algorithm for calculating the estimated cost.
The results will be the basis for scaling our product, so that the user gets the most reliable information and makes the right investing decision.
What is the main trend of the real estate sector in the new reality?
MB: One of the main trends in the real estate market is the security of agents, owners and clients. Virtual real estate valuation is becoming a common practice and is unlikely to become obsolete after the self-isolation measures are lifted. In the international market, not only the viewing itself, but also the transfer of money and signing contracts online is a common practice. But that's not all. The need for security is reflected in the real estate itself. Landlords are required to equip their offices with the ability to work remotely and track contacts at the workplace. Now people ask to convert the well-loved openspaсe into individual cubicles to isolate employees from each other. Another criterion for increasing the cost of real estate is the availability of robotic cleaning and disinfection of premises.
Combining such knowledge about the object, current market information and our technologies allows us to give a very clear idea of the actual cost of real estate now and in the future, and most importantly, to determine at what time it is best to start the marketing of each object, that is, when this object will have the highest demand.
While some areas may require a rethinking, eventually, the interaction of the real estate industry with technology should serve as a catalyst for further development of the entire industry.