The analysis of the real estate market in 2022 is very different from the same analysis in 2000, and even more so in 1980. Everything has become much more difficult.
The main difficulties of analyzing the real estate market in 2022
First, in principle, the concept of “real estate market” has become too vague. The real estate market has become much more diverse, it is owned by different categories of people, it develops differently in each specific niche. She has a different pricing policy. The forecast is made and the risks are assessed in different ways.
Secondly, such a factor as time greatly complicates the task. Now you need not just to collect a sufficient pool of data and analyze them. But do it quickly, before the situation on the market changes and the collected data simply does not lose its relevance. Our turbulent time does not help a person in any way.
Thirdly, on the one hand, the Internet has opened up access to information and it seems that anyone can find out everything about absolutely any object. But is it? We see that there is still inequality and someone knows more, while someone clearly knows less.
Fourthly, especially in today’s realities, when the dollar can both rise and fall, prices change so quickly that only real professionals can make money in the real estate market.
Purposes of real estate market analysis
Analysis of the real estate market can be ordered by both individuals and companies. Their goals can be very different:
1. search for real estate for investment;
2. purchase and sale;
3. development companies can make decisions about the reconstruction, demolition and construction of a new building;
4. property management – what function will the purchased building have if it changes.
Marketing analysis of the real estate market
Marketing analysis of the real estate market begins with clarification. From the very first steps, it is important to clarify what interests you:
• analysis of the residential real estate market or
• analysis of the non-residential real estate market
If you are interested in the analysis of residential real estate, then here you can add a little more clarity. This will:
• analysis of the suburban real estate market;
• analysis of the secondary real estate market;
• analysis of the market for new buildings.
Or, if you are considering investing in non-residential real estate, then you can clarify among the following options:
• analysis of the warehouse real estate market;
• analysis of the commercial real estate market;
• analysis of the industrial real estate market;
• analysis of office real estate.
After you have decided on the category of real estate, you yourself or a specialist will monitor the market to identify the real estate that can be purchased. In addition to the analysis of the property of direct interest, if necessary, an analysis of its environment is carried out.
Also, the marketing analysis at the first stage includes the definition – where do you want to buy real estate – in which country? This may be the country where you live or abroad. Analyzing the real estate market abroad becomes even more complicated if you have never done anything like this before. The mentality of the people of another country, legislation – everything plays a role. We recommend contacting a specialist.
Financial analysis and planning
After the statistical indicators are collected, the analysis and assessment of the current state of the indicators is carried out and it is necessary to look at the dynamics of the indicators. This may take some time, from a month or more. All analytics is done with the help of special programs that are able to analyze a large database and issue a report. As a result, you get financial analysis and planning, on the basis of which it is quite easy to make a decision according to your goal. It is much more than just knowing the value or prices of real estate.
The determining indicators are most often the price of the object and the price of the transaction, the bargaining coefficient, the rental rate, the capitalization coefficient, the exposure period on the market.
Review, analysis, forecast from IC Invest
By contacting IC Invest for an analysis of the real estate market, you will receive:
• an overview of the property you are interested in, according to the goal;
• SWOT-analysis or PESTEL-analysis (analysis of the strengths and weaknesses of the studied market segment, its opportunities and risks, business climate, taxation problems, etc.);
• forecast of development prospects and other related opportunities with the researched real estate;
And if it’s quite simple, then you will get a complete analysis of the economic efficiency of the project.