Property Technology is the driving force for better real estate transparency
The lack of transparency in the real estate sector has always been an unsolved issue. Information or data on properties in the market are not as readily available or if there is information, it is often incomplete. Consequently, this will create inefficiencies throughout real estate transactions that can lead to a long wait when closing sales, mispricing, and higher fees.
Therefore, it is crucial for the real estate industry to develop a more comprehensive database to improve transparencies.
There is an Israeli start-up company named Skyline AI that is doing just that. Skyline AI claims to have the most complete database of the real estate market which includes stock-market performance, interest rates and financial indicators, commercial real estate analytics, city and district level data.
Skyline AI Co-Founder and CEO Guy Zipori said, “To give us the valuations, our machine learning algorithm checked more than 130 data sources and analyzed the information covering the last 50 years.”
This allows the platform to make algorithm-based predictions around real estate asset performance, price, rents and broader property market trends. With new technologies being developed, investors, tenants and property managers’ will have access to easily-manageable datasets, allowing them to make better-informed decisions.
Prop-tech has the potential to be the largest future contributor to real estate transparency by being able to collect, consolidate and publish publicly-shared real estate data. With the advancement of these Prop-tech startups, the information on the real estate market that was once not easily accessible could be made available to those who are involved in the property sector.
In the past 20 years of Jones Lang LaSalle publishing the Global Real Estate Transparency Index report, the level of regulation and availability of data has increased, resulting in a gradual increase in transparency.
Real estate transparency leads to an increase of city competitiveness as the real estate sector helps drive investment and new businesses into cities, rejuvenates communities, and provides an appealing space for residents to settle down and work.
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