The Traditional Market Challenge
In the real estate market, decisions involving millions of pesos have historically relied on intuition. However, Artificial Intelligence (AI) is now emerging as a transformative tool to redefine the evaluation of real estate investments in Mexico.
Accurately determining property prices, their profitability, and actual demand has been a significant challenge in this sector, marked by the lack of reliable and up-to-date information.
Three Key Pain Points in Real Estate Transactions
According to Fernando Loria, Director General of Dictum Knowledge, the three main challenges in real estate transactions are time, uncertainty, and asymmetry of data.
“Many properties are advertised today in Mexico, but the absorption index sometimes exceeds 365 days. This means there are neighborhoods where a house can take more than a year to sell. This is mainly because information is asymmetrical in this market,” Loria explained in an interview.
Currently, a developer can invest up to 50 million pesos in a project based solely on a ‘market feeling’, increasing risk and prolonging commercialization times.
Traditional Market Studies: Time-Consuming and Expensive
While market studies do exist today, obtaining a specialized one can take between one and three months, with costs ranging from 50,000 to 200,000 pesos. This limits access to accurate and timely information for decision-making.
AI Empowering Real Estate
Given this scenario, Dictum Knowledge, a company with over 20 years of experience in financial analysis software, decided to bring its expertise to the real estate world with the launch of Gnostum. This platform leverages AI to expedite and democratize investment analysis.
“The goal of these products is to close the gap between buying and selling positions. Considering that around 60% of real estate operations fail due to price disagreements,” Loria indicated.
With Gnostum, market studies are reduced from months to just 10 business days, with lower operational costs. The platform integrates dynamic dashboards that include absorption rate metrics, market comparables, projected cash flows, and regulatory zoning.
Data at Your Fingertips
To access the viability analysis and competitive landscape offered by Dictum, users only need to input basic information such as address, area, square footage, and construction type.
Gnostum’s calculator is available for mobile devices (iOS and Android) and computers with internet access, providing coverage in 65 neighborhoods of Mexico City, State of Mexico, Guadalajara, and Monterrey.
Dictum Knowledge aims to connect 2,000 real estate advisors to the platform during its first year of operation, fostering a more agile real estate ecosystem backed by AI-driven data.
Key Questions and Answers
- What challenges does the traditional real estate market face? The main challenges are time, uncertainty, and asymmetry of data. Market studies can take months and cost up to 200,000 pesos, limiting access to accurate and timely information.
- How does AI help in real estate investments? AI, through platforms like Gnostum, expedites and democratizes investment analysis by reducing market studies from months to 10 business days, integrating dynamic dashboards with crucial metrics, and making data more accessible.
- What information is needed to use Gnostum? Basic information such as address, area, square footage, and construction type is required.
- How does Gnostum benefit real estate advisors and the market? Dictum Knowledge aims to connect 2,000 real estate advisors to Gnostum during its first year of operation, promoting a more agile and data-driven real estate ecosystem.
