Real estate is one of those very few sectors which generally gets enormous amounts of consumer data through forms and brochures. With internet penetration reaching remote areas and real estate investors and home sellers searching for properties over the internet, stakeholders can identify prospective investors’ next moves in terms of buying or selling a property. The stakeholders can then use these data points to make better and forward-looking decisions.
Predictive analytics refers to a multidisciplinary field where sourced data, statistical algorithms, and machine learning techniques work in tandem in order to recognize the likelihood of a particular event. Whether it is for a client who intends to purchase a property or for a future investor, offering real-time insights on asset performance is essential for every real estate transaction. Predictive analytics in real estate not only enables agents and consultants to gauge through hundreds of properties simultaneously, but also provides a thorough understanding of pricing trends and market dynamics. This provides assistance in making informed decisions when looking at acquiring or selling off a property.
Moscow’s real estate market is booming, fuelled by record-low interest rates and a state-subsidised mortgage programme, prompting the central bank to consider ending a COVID-19 support measure to prevent a housing bubble. The city of 12.5 million people has seen its cost of living fall this year and it ranked outside the world’s 50 most expensive cities last year.
- Data cleaning
- Data analysis
- Data visualization
- Prediction using machine-learning algorithms
- Conclusion
Although new technologies like real estate tokenization have lots of advantages, they also come with their own set of risks and privacy concerns. Certainly, there are various challenges associated with the technology. Hence, instead of ad hoc adoption, predictive analytics-based tools should be deployed in a phased manner. Future direction of research may consider incorporating additional property transaction data from a larger geographical location with more features, or analysing other property types beyond housing development.
- Predicting property prices with machine learning algorithms, Winky K.O. Ho, Bo-Sin Tang & Siu Wai Wong
- Predictive Analytics in Real Estate
- Russian real estate booms
- Moscow Real Estate Prices
Petar Dimitrievski , March 2022