Whether an unrenovated old building in Leipzig, a detached house in Miesbach or an entire residential portfolio - our new tool "RIWIS Prospect" determines rental and purchase prices in just a few seconds. The algorithm is based on almost 10 million offer data that we have been evaluating since 2009. In many countries, by the way, such hedonic price models have long been established and recognised as a valuation method. Test it.
RIWIS Prospect is used by our clients to very simply determine the earnings potential for flats. The pricing model is based on data from property portals and additional market and location information from our RIWIS database. In addition to countless individual values, we have now also issued prices for portfolios with more than 20,000 residential units.
The core component of the application is a hedonic pricing model. This is an established method for determining the influences of individual properties on the value of a good. For residential properties, these are, for example, the price level of a market, the quality of the micro-location and its neighbourhood, essential building features and, of course, equipment features and qualities of the actual residential unit. As a result, the calculated purchase price as well as the rent can be output in five individual components: Market level, value of the location, quality of the property, equipment of the flat and, of course, the resulting total value. Outputted rents and prices always apply in the event of a new letting or sale at the current time.
Due to the complexity of the market, bulwiengesa does not rely solely on Big Data and complex algorithms, but combines data-based models with its many years of market expertise. In our experience, this is the best way to take regional and market-specific information and particularities into account.
Contact person: Björn Bordscheck, Division Manager Data at bulwiengesa, bordscheck [at] bulwiengesa.de