Four use cases showcasing Archilyse “Analyse” applications

The objective real estate analytics that Archilyse delivered, provided these four real estate players with evidence-based data, enabling better-informed decisions that can lead to optimised pricing, identify unnecessary vacancies, provide additional data to strengthen sales and marketing or open up potential additional customer segments.

The cases and the results are client and project-specific but show how objective data delivered by Archilyse can be used to increase the efficiency of daily real estate processes.

1. Rental price determination for existing and new units

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

Identify potential additional revenue with optimised 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.

Benefits

2-4% potential additional revenue

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 between 2-4% potential additional revenue across their portfolio.

Increased accuracy

The automated pricing optimisation is based on objective metrics, 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

Optimised prices lead to shorter property absorption times and shorter vacancies.

Shorter vacancies

Vacancy risk: Identify red flags

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

For one of our customers, we compared the results of the RentCalibrator to the vacancy data of the analysed apartments.

In this case, the comparison showed that the overpriced apartments (compared to the recommended prices delivered by the RentCalibrator) had a 30% higher vacancy time compared to the remaining units within the data sample. Hence, the RentCalibrator not only provided market confirmed price recommendations but also helped to identify the red flags.

Average_time_on_market_of_units_with_calibrated_prices_is_30_percent_shorter_Archilyse

In this concrete project, the average vacancy period for the overpriced units was 293 days compared to the 205 days of the remaining apartments.

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.

Gaining customer trust with evidence-based, objective real estate data

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

Our customer, a real estate agent, had a potential buyer who had concerns about the daylight quality in the underground level of a 2-story apartment – and the influence of an atrium built in 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 and the sky view.

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 were simulated -at different times of the day and in different periods of the year-, 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 sk yview simulation served as a secondary performance indicator. The sky view analysis quantifies the direct view of the sky from each point of the apartment.

Archilyse skyview analysis

Heatmaps displaying the sky view 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, sky view, 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.

Quality-based price differentiation

Differentiation based on advanced property analytics

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

A student accommodation developer anticipated a “one fits all” price for all of their studios. Analysing the studios using Archilyse’s quality analysis it became clear that there was a significant quality range between the studios that also allowed for a much more differentiated pricing.

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

>3% revenue increase

In this customer project, the quality analysis and related ranking of the studios brought up a potential revenue increase by means of a quality-based price differentiation and correlated additional customer segments.

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

 

 

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