The real estate market has slowed down. How can real estate investor improve their operations in uncertain times and improve their positions before the market recovers? Data and the right tools bring real estate investors benefit and sustainable growth. It’s worth starting to get ahead of the competition now.
The real estate market has slowed down recently due to the uncertainty in the market, caused by coronavirus, war and inflation, as well as the rise in interest rates. However, the dip is likely to be temporary.
In quieter times, smart real estate investor spends their time preparing for the recovery phase in the future by optimising their portfolio. Data offers an efficient way to develop a portfolio, believes Chief Revenue Officer Juha Puotila from CHAOS architects.
“The cost of a bad decision can be high. Good decisions can lead to savings and even profit. With the right tools, better decisions can be made.”
The average real estate investor spends a lot of time searching for data on the Internet to support decision-making. Rent and square meter prices are only part of the amount of information that a real estate investor needs.
In the best case, services that combine many data sources offer all the necessary information from the same place. Puotila reminds that when purchasing the service, you should pay attention to how up-to-date and accurate the data is, as these may vary depending on the provider.
“In addition to rent levels and square meter prices, the most advanced services offer information on rental trends in areas. With this real estate investors can check how the market trends in the area are developing and how the current situation compares to history,” says Puotila.
CHAOS’s location intelligence platform is a modern tool for real estate investors. The data it provides brings continuity to the everyday life of real estate investing. With the help of the platform, the investor can get to know the area and its market in advance. And with the help of comprehensive information, productive business decisions can be made and risks can be reduced by focusing only on projects that are more profitable in terms of risk classification.
Using CHAOS brings a clear time saving to the real estate investor’s everyday life and improves the sales completion rate significantly.
“The cost of a bad decision can be high. Good decisions can lead to savings and even profit. With the right tools, better decisions can be made,” Puotila reminds.
“Using data will help real estate investors grow and position themselves better when the market wakes up. If you wait now and jump in when the market has recovered, you can be sure the playground is already crowded.”
In addition to making good decisions, using data also brings new opportunities for sustainable growth; with data provided by CHAOS, it is also easier to assess the sustainability and environmental impact of buildings.
Sustainability is a big and complex concept, especially in the construction industry. Many have gotten lost in the jungle of LEED, BREEAM and RTS environmental certificates, sustainable development goals and ESG. WithCHAOS, the impact of operations on sustainability can be evaluated.
“CHAOS offers the investor the opportunity to look at the property’s surroundings as part of the analysis. Services, accessibility and even the demographics of the area all affect how responsible and productive the investment is in the long term,” reminds Puotila.
When the market quiets down, it’s the best time to grow your future project portfolio or analyse your current portfolio. With CHAOS, a shrewd investor can check, for example, how rents in different areas react to the market in general and which areas are more successful in a challenging market situation.
The biggest advantage is the combination of diverse data sources.
“CHAOS makes it possible to use, for example, demographic data to target marketing at a very early stage,” says Puotila.
If the real estate investor’s goal is to grow, according to Juha Puotila, it’s worth investing in it now to get ahead of the competition:
“Using data will help real estate investors grow and position themselves better when the market wakes up. If you wait now and jump in when the market has recovered, you can be sure the playground is already crowded.”
CHAOS residential market is the most important tool for a real estate investor. You can use CHAOS to view rent levels and trends in a certain area and then evaluate the development of the market in the area.
Enrich the residential market platform with demographic data and service information – or analyse the area’s services and accessibility, considering your target audience.
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