Four use cases showcasing Archilyse “Analyse” applications

Based on the objective real estate analytics that Archilyse delivered, four real estate players were empowered to make better-informed decisions that led to optimised pricing, identifying unnecessary vacancies, data-driven support for sales and marketing processes and broadened target markets.

1. Price determination for existing and new units

More accurate real estate pricing based on objective quality values and real estate market data.

2-4% potential additional revenue gained by optimising and standardising price-setting processes

Pricing mistakes linger forever, reducing profitability

Setting the right initial asking price is crucial. Over or underpricing properties has long-lasting effects and heavily harms the potential and historical profitability of any development project or real estate portfolio.

Determining property prices manually and subjectively is an error-prone process and leads to inconsistencies.

Optimised price determination

In order to optimise and standardise their pricing process, our customer, a real estate portfolio management firm, has adopted the RentCalibrator to determine the asking prices of their existing and new units.

RentCalibrator price determination solution Archilyse PriceHubble

The price recommendations are derived from floor plan quality analyses, geolocation factors and market-determined variables

Using the RentCalibrator and, thus, accurately setting pricing based on objective floor plan quality values and broad real estate market data led our client to identify a 2-4% potential additional revenue.

Benefits

2-4% potential additional revenue

Optimising the price-setting process and applying it across their entire portfolio allowed our client to increase their potential revenue.

Increased accuracy

The automated pricing optimisation is based on objective floor plan quality factors and large real estate market datasets, eliminating the impact of subjectivity and human mistakes.

Process standardisation & know-how management

Adopting the RentCalibrator for the price-setting process ensures consistency from a historical perspective and across locations. All portfolio managers in a firm can rely on the same objective, data-driven, proven and accurate solution. Even with fluctuation within the team, the object-related know-how remains secured in the database.

Speed and efficiency at scale

Once the portfolio is digitised, setting and adopting prices for entire portfolios containing thousands of units can be accomplished in a matter of minutes.

2. Stir time to market: Reduce unnecessary vacancies

Shortened property absorption time, reduced vacancies, optimised prices.

30% reduction on vacancies

Vacancy risk: Identify red flags

In this case, our solution helped to identify the overpriced units. Throughout the analysis, the solution was able to show that on these units the client had a 30% longer vacancy period compared to the other units.

Overpriced units pose a risk of longer vacancy periods and higher tenant fluctuation, which translates into low profitability.

One of our customers, one of the largest portfolio managers in Switzerland, used the RentCalibrator solution to optimise the prices of the units in one of the sites they manage.

Average_time_on_market_of_units_with_calibrated_prices_is_30_percent_shorter_Archilyse

Benefits

Shorter vacancies & higher profitability

By identifying the red flags the client can now make better-informed decisions in regards to the pricing of the respective site, leading to shorter vacancies and thus higher overall profitability

3. Concise property analytics to support sales and marketing

Deep, data-based knowledge of the strengths and weaknesses of each of the objects in your portfolio.

Precise and detailed property information based on floor plan quality, covering a variety of performance indicators.

Answering the question: How much light is there in the basement on a summer morning?

A real estate agent and marketer had a potential buyer who had concerns about the daylight quality in the underground level of a 2-story apartment -with an atrium built to increase the daylighting performance-.

Objective and concise property knowledge

In order to objectively assess the situation and give a concise answer to their client, the floor plans of the property were analysed taking into consideration the daylighting -at different times of the day and in different periods of the year- and the skyview.

The daylight analysis quantifies the direct light irradiation at each point of the floor plan.

The lighting values of each of the rooms of the property at different times of the day were simulated, delivering objective values across the entire site including all apartments.

Archilyse daylighting analysis summer season

Daylight simulation values in the morning and at noon in the summer season.

Additionally, the skyview simulation served as a secondary performance indicator. The skyview analysis quantifies the direct view of the sky from each point of the apartment.

Archilyse skyview analysis

Heatmaps displaying the skyview values at each point of the apartment.

As an objective conclusion, the construction of the atrium had a positive impact on the daylighting conditions of the underground level of the property.

Benefits

Gain customers’ trust with concise property knowledge

Obtain precise and detailed property information based on floor plan quality, covering a variety of performance indicators such as daylighting, skyview, greenery view, water view, street view, mountain view and traffic noise levels.

Effective property targeting

Based on the characteristics of the objects and their appeal to different target customer groups, you can segment your portfolio and perform targeted sales and marketing processes.

4. Broadening target market through price differentiation

Price differentiation based on floor plan quality parameters.

>3% revenue increase derived from quality-based price differentiation

Differentiation based on advanced property analytics

Properties with similar layouts have different performance levels in terms of qualitative aspects such as daylighting or views that depend on the floor on which they are located, and their position in the building with respect to neighbouring buildings and geographically defined factors.

A student accommodation developer had a single price for all of their studios. After identifying differences in the floor plan qualities, it became possible to segment the studios according to their quality and work with more precise price differentiation.

Apartment differentiation based on lighting qualities_Archilyse

Heatmaps displaying performance differences between units with similar layouts.

Having defined new price categories allowed our client to broaden their target market and helped to identify an additional >3% revenue potential.

Benefits

Quality-based price differentiation

Advanced property quality analytics allow to differentiate and cluster -even seemingly identical- objects according to their performance in respect to a broad set of objective indicators.

>3% revenue increase

Object and price differentiation enabled a portfolio segmentation that broadened their target market, significantly raising their revenue.

Plug advanced property analytics and boost the profitability of your real estate business

 

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