On the Need to Define an Analysis and Development Methodology for Real Estate Investment

Abstract

[EN] Investment in real estate is a very attractive way to generate passive income. It is usually perceived as a stable and secure investment. However, as with any other type of investment, it also comes with certain risks and challenges. The lack of a solid and structured methodology for real estate investment can lead to wrong decisions and therefore not achieving the expected return. The global market and the entry of investment funds have significantly changed the analysis and decision-making process, assimilating it to that of the financial markets. However, there are characteristics that make it different, and it is necessary to take them into account. On the one hand, the investment and divestment terms are long, which increases the associated risk. On the other hand, it is a market that is very sensitive to the ups and downs of the global economy, politics, social trends, demographics, etc., both globally and locally. It is therefore essential to define a methodology that takes all these variables into account. Today, the origin of capital in investment is very diverse. Funds raise money from investors all over the world. And, on another scale, the search for more profitable or stable markets for small investors, real estate crowdfunding platforms, investment vehicles, etc. also lead to the incursion of non-specialized investors. Both require professional managers who carry out a rigorous process in the approach and development of operations. All this is happening in a context in which Protech has burst onto the scene in a very powerful way, providing tools that modify access to investment, management, advertising and even the variety of the product. In this scenario, determining a methodology, with the help of new technologies, that allows all these variables to be introduced and serves as a guide in the investment process is essential to achieve the objectives and minimise the risks. For all these reasons, the possible use of big data as a tool for analyzing the needs of supply and demand is analyzed in order to determine the most optimal product using tools supported by artificial intelligence.