For too long the real estate industry has taken investment decisions on a case-by-case basis; based on segregated information and personal networking, which is usually gathered and studied by consultants. This process is financially and resource consuming for organizations; moreover, insights produced in a case-by-case model easily become outdated in a constantly changing ecosystem.
After facing one of the greatest pandemics of our time, we can now argue that decisions based on outdated data and personal knowledge is not sustainable. We need to look forward, detect trends and understand how the world and the citizens are changing.
The Covid-19 crisis has been a wake-up call for many of us and now more than ever it is important to back up decisions with data. The conflicting information media is providing in the middle of today’s crisis, makes real insights more valuable than ever.
Living in uncertain times makes many companies in the real estate industry wonder how to make the right investment and divestment decisions. What happens to the value of my properties? Which properties should I get rid of? Where is it good to invest now? are all questions that CHAOS indexes can help you with.
By combining historic, traditional and non-traditional data variables, CHAOS Indexes provides real estate investors and city developers with neighbourhood-level insights to identify business opportunities and make data-driven decisions. CHAOS indexes don’t only offer insights by combining your internal data with data from the urban environment, but also makes utilizing information about crowds behaviour and needs in decision making possible.
CHAOS helps customers manage their portfolio by providing action-driven insights of the catchment area at a submarket level.
We have put together some examples of how to utilize the CHAOS Indexes to make investment and divestment decisions.
Increase your knowledge about a location by combining submarket level data regarding your own projects and assets with processed urban data and crowd insights and identify the best new investment opportunities by recognizing for example: 1) empty plots to purchase and develop 2) existing urban areas with potential to invest in its development 3) suitable locations for specific development projects.
Read about how CHAOS helped the City of Helsinki outline the foundation for implementing urban forecasts for the city’s development decision-making.
Forecast future renovation needs by understanding how the demographic needs and behaviour in the area are changing. By identifying the demographic and urban trends in terms of traditional and non-traditional variables you can modify your offering to better meet the future needs of that area and raise the value of your commercial and residential properties.
Read about how we helped KONE to identify new modernization needs based on traditional and non-traditional variables.
Lastly, to understand where to invest and divest it is crucial to identify how attractive an area is to live in. For this, CHAOS has put together the CHAOS Attractiveness™ Index which identifies which areas are gaining or losing appeal. Attractiveness is considered a combination of different aspects of an urban environment that contribute to the well-being, convenience and sense of belongingness of the resident.
Want to discuss more how we can support you in investment and divestment decisions?
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