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Real Estate Company Uses Data Science to Overcome Challenges

Business Case:

Ongoing residential real estate projects often run behind schedule leading to cost overrun. Controlling quality of work done by small contractors while meeting project cost and schedule remains challenging. Oversupply in the national and local residential real estate market has impacted demands from buyers, affecting all current projects. The company had to offer higher commissions to real estate agents who they rely on to bring buyers. Expensive promotional campaigns involving online and offline adverts were proving ineffective. They needed to rework the project proposals – amid rising cost of financing, lack of interest among investors and increased compliance requirements.

Solution:

Joon Solutions developed an analytics-based real estate model for each project location, based on detailed market research and organising industry information from numerous sources. Each of the analytics models involved over 300 parameters covering apartment and building design, buyer preferences, socio-economic developments, market dynamics, locality and neighborhood, accessibility, security, amenities as well as financial modelling for developer and potential buyers. Using advanced optimization techniques, our team identified the most probable business scenario. These findings were then used as the basis for deciding future courses of action.

Success:

Based on rigorous analysis carried out by Joon Solutions, the management team was confident of the recommended course of actions as a result, and adopted the appropriate technology to improve the business processes to match industry benchmarks, helping avoid delays in ongoing projects, improve work quality and project financing. The board was assured of improved returns from sales of units from ready possession and ongoing projects. This included improved sales targets, customer segmentation, focus on target buyers and strategies for engagement with the buyers. Regarding proposed/future projects, the company readily accepted the ‘optimised conceptual design’ including the project location(s), staggering of the project development, focusing on different consumer segments and reworking financing of the project(s).