Location, location, location – a well-known mantra of real estate professionals; it reflects an understanding of the importance of location to the real estate market. Still, many real estate businesses do not fully understand how to maximize the benefits of location intelligence by using a GIS.
There is an upsurge of construction in Guyana at this time in both the residential and commercial sectors. Property owners, real estate developers, brokers, appraisers, marketers and international investors need to analyze investment possibilities in the most accurate way possible.
Location Analytics garner information from various sources in order to provide commercial and residential real estate operators with the information needed to effectively analyze market potential and trends required to meet customers’ needs.
Using satellite imagery, aerial photographs, flood maps, demographic data, points of interest data and business information along with the necessary software tools, real estate professionals can analyze data which they can then use to make better-informed business and investment decisions.
So how would clients benefit from GIS? Listings can be added to a map so that clients can visually determine the locations available for sale in any given neighbourhood and weigh the pros and cons of each location. A simple-to-use web-based user interface will enable clients to make selections based on their preferred criteria or location attributes. Those attributes might include closeness to schools, proximity to public transportation, price range, and number of rooms and bathrooms. In other words, using GIS, real estate companies can provide clients with visual information and by extension, quality service.
A commercial buyer on the other hand can evaluate available listings by examining competitor locations in relation to the listing, identifying market potential, and comparing sites with one another, both geographically and demographically. Points of Interest data, that is, named landmarks, ranging from public facilities to commercial buildings such as shops, restaurants, hotels and retail stores allows buyers to secure a full appreciation of the location’s amenities. If, for example, a business is considering relocating, sites can be evaluated based on their accessibility to customers or employees. Drive-time analysis aimed at assessing the number of employees within the shortest distances around the new location can also be undertaken.
Real estate brokers and appraisers can also use GIS to accurately analyze commercial properties and their attributes through demographics, aerial photographs, traffic counts, shopping center usage, merchandise potential and competitive influence. Real estate brokers and appraisers with these skills have a competitive advantage and are usually hired by multi-national chains to select new locations for their growing businesses. Location matters more than ever and GIS gives real estate professionals the information they need to make profitable decisions.
GIS tools are also relevant in the following additional aspects of the real estate industry:
- Appraisers can track land values
- Banks and mortgage lenders can conduct their own internal assessments
- Insurance companies can perform underwriting analysis
In all these cases, with the right data, expertise and GIS software tools real estate companies can analyse location, location, location coupled with other information for your business advantage.
GIS can use prior sales data to illustrate current market trends and create customized maps highlighting market perceptions. These results are useful in aiding investors so that they may be well informed while contemplating expensive decisions. Real estate brokerage is a service industry and quality service is linked to having the knowledge, the experience and the reputation. Smart clients want to know that they are working with persons who are well-informed about the area and its current real estate market trends. Even for a question as vague as, “what is happening in the real estate market in Guyana right now?” customers want a response. Using a GIS, a real estate agent could have a few maps prepared for such a moment showing real estate sales for a given period. The maps will indicate areas in which activities have increased or decreased thus allowing potential clients to gain insights into communities that are thriving as oppose to those on the decline.
In Guyana, GIS is not being fully employed in the real estate sector, perhaps because many are unaware of the value. The challenge then is for the innovative few to get ahead of the curve and be on par with their peers on the international arena by incorporating location analytics in their daily operations. The result? Better decisions and greater profitability. Using GIS may be just the competitive edge you have been dreaming of.
