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21st Real Estate

USING SMART DATA AND AI TO REVOLUTIONISE REAL ESTATE TRADING

Since its foundation in 2016, 21st Real Estate has been one of Europe’s most innovative PropTechs. 21st is the first company ever to set itself the goal of digitalising the entire real estate transaction process. Innovative software solutions are allowing the real estate industry to make faster and better decisions. The Berlin-based PropTech with its online valuation tools has already valued more than EUR 1 billion of real estate.

Real estate transactions are executed faster than ever before. Especially today, low interest rates, supply shortage and investment pressure increase competition and therefore investment opportunities must be quickly identified in order to conclude good real estate deals. This can only be achieved through a precise and accelerate valuation. However, analysing property purchase offers may take several days, real estate portfolios even longer. Therefore, 21st Real Estate offers software solutions to create a competitive edge and turn days into minutes.

21ST TURNS BIG DATA INTO SMART DATA

Although there is an enormous amount of data in the real estate industry, these Information are rarely available and even less on demand. 21st Real Estate structures big data using artificial intelligence and transforms it into smart data. With its imported smart data, the 21st tools enable an automated execution of location analyses and real estate valuations on property and portfolio level. 21st Real Estate has geographically mapped 1.2 billion data points and over 60 million rental and purchase prices across Germany to generate a total of 2.3 million integrated data tiles. In regions with over 20,000 citizens, each tile covers an area of 200 by 200 metres, in rural regions 1,000 by 1,000 metres. Each tile contains information of up to 350 different parameters including social and economic data and building-specific information.

ANALYSE AND IDENTIFY PROPERTY LOCATIONS

Within seconds, 21st Real Estate is capable to conduct a location analysis of every address in Germany, even in areas where information and data are scarce. Using a wealth of raw data, 21st’s technology creates an objective location profile, which is then output as a standardised Smart Data Report in pdf format. This Smart Data Report contains innovative scores about location, attractiveness and demand like centrality, nature and local amenities. Also included are demographic data and rental and purchase price developments for residential which are calculated using machine learning algorithms. In addition, users can identify specific locations throughout Germany that exactly match their individual search profile and define investment strategies. For example, if developers or investors are looking for a suitable site to build a student residence, with the 21st tools they can create a search profile that links the travel time to the nearest university or college combined with the presence of bars, cafés and fitness studios or other factors. Then the system generates a heat map to display the closest matching locations.

INDIVIDUAL PROPERTY VALUATION

21st Real Estate provides a calculation tool to appraise real estate acquisitions and provides the user an initial assessment of potential property investments. In addition to specific building information and purchase price, a tenancy schedule in Excel format can be uploaded into the tool. Potential returns and other crucial KPIs are calculated using standard valuation methods. Depending on the investment strategy, the user can individually adjust more than 100 parameters within the calculation, such as operating expenses, capital expenditures or debt financing. Also, users can upload their own valuation methods into the tool.

PORTFOLIO ANALYSIS WITHIN A FEW CLICKS

21st Real Estate’s tools also enable the analysis of entire portfolios in terms of acquisition and performance analysis in a matter of minutes. The portfolio valuation tool identifies rent potentials, hidden opportunities and risks and offers a scenario analysis within the specially developed DCF calculation.  Thus, even real estate portfolios with a high level of diversification throughout Germany can be analysed within a few clicks.

Trading real estate like equities or bonds

21st Real Estate is already working with partners, including banks, insurance companies, chartered surveyors and construction companies to further develop its software solutions and gradually move closer to its vision of digital real estate trading. In future, real estate will be traded just like equities or bonds today.

Location assessment, portfolio analysis, profile score manager: 21st Real Estate’s business is based on generating Smart Data out of the jumble of Big Data using structuring processes and Artificial Intelligence. These data are imported into the company’s online tools allowing users to execute real estate portfolio, investment and location analyses.