The property technology company, Scoperty, hopes to make the property market more transparent with a price platform based on big data and algorithms. Around 1 million estimated residential property valuations in Hamburg have been available on the platform since November. The company aims to put a digital price tag on approximately 40 million residential properties across Germany by 2020. This comes against the backdrop of an increasingly costlier property market, according to a survey by the Statistisches Bundesamt. The price of apartments and houses across Germany increased by an average 5.2 per cent in the second quarter of 2019 over the same period in 2018, the survey found. The price of single and semi-detached houses in Germany’s seven biggest cities including Hamburg (increased 10 per) cent while the price of owner-occupied flat rose 8.6 per cent.
Digital property barometer to boost transparency and sales
The Munich-based Scoperty GmbH has published initial data on over 829,000 apartments and 140,000 single-family houses in Hamburg. “By providing estimates, we are creating more interactions between potential buyers and sellers than ever before. Not only are we making the market more transparent, we are also increasing the range of offers by enabling prospective buyers to submit non-binding offers for their favourite property to the owner based on the estimated values,” said Michael Kasch, Managing Director of Scoperty. The platform also provides online data on over 8 million residential properties in Munich, Berlin, Frankfurt and Cologne.
Platform based on big data and AI
The start-up combines online views of streets and facades with information from public and private sources. To achieve greater accuracy, owners can customize the data about their property. The price platform is based on data processed by an algorithm. The starting point for a transaction is no longer simply an offer, but the transparency and visibility of market data, which is intended to bring potential buyers and sellers together, Kausch added. Prospective buyers can make non-binding offers for properties that are not yet for sale, potentially initiating or accelerating a transaction. The platform is free for property owners, vendors and prospective customers. Scoperty earns revenue by mediating estate agents and funding. Founded in 2019, Scoperty GmbH is a joint venture of ING Bank N.V., the Swiss prophet PriceHubble AG and Sprengnetter GmbH, a property valuation specialist. Its managing directors are Dr. Michael Kasch, Sebastian Frenzel and Anika Andresen.