The performance of prices in illiquid markets such as real estate is a key tool for re-analyzing past portfolio values without repeating expert analysis for each asset, and for ascertaining the projected value of the asset in future.
Those performance models must take into account not just the macroeconomic and sector-specific situation of the assets of the region, but also the performance of assets with particular characteristics similar to those analyzed.
To update real estate portfolio valuations where there is reliable data (official valuation or similar) at a previous time. The system must take into account the particular characteristics of the asset, and augment the general indexes provided by public and private actors with aggregation at the geographic level.
To be user friendly, the system must be usable through an API that permits calculation of the performance of each of a portfolio’s assets and the range of confidence in the updated value based on the information provided for the asset.
The tool developed by Foqum can update valuations of portfolios of thousands of assets in less than 3 minutes, incorporating local aggregate indicators with analysis of the performance of values of assets with similar characteristics, and detecting and highlighting deviations between both types of indicator.
Tailored systems are 33% more accurate on value compared to general indexes such as the Spanish Housing Price Index (IPV).