by THO
Propstack, a real estate data analytics provider, and Singapore-based firm AlphaGeo that is into geospatial artificial intelligence, have joined forces to provide investing solutions for India’s real estate market, including forecasts on how climate risks such as floods, heatwaves, droughts, sea level rise, typhoons among others can affect a property’s long-term value.
This joint venture will provide global institutional investors, real estate developers, brokerages, banks, insurers, government agencies and others with a comprehensive toolkit to assess real estate transactions including due diligence and risk analysis, financial modeling and valuation, site selection and acquisition strategy, Propstack said in a statement.
Through this tie-up, Propstack clients will gain access to AlphaGeo’s headline location risk and resilience scores for major Indian cities, the companies said in a statement.
“Predictive location analytics driven by geospatial data empowers investors and developers to undertake more rigorous risk assessment and site selection,” said AlphaGeo founder and CEO Parag Khanna.
“Geospatial data is revolutionizing the way you approach real estate investments, providing insights that were previously out of reach. Imagine being able to visualize extreme weather patterns or understand how climate change might affect a property’s long-term value. We are excited to integrate our market leading transactions data with advanced geospatial analytics to create a holistic view of any given property,” said Raja Seetharaman, co-founder of Propstack.
Geospatial data analysis for property investment
Real estate in India is heavily concentrated in major urban centers. The sector comes under pressure from interest rates, liquidity, tech disruptions, demographic shifts and climate stress.
Businesses and investors therefore require data and forecasts to support leasing, lending and underwriting, it said in a statement.
Insights on leasing could include projections on climate hazards that will mean shorter lease periods, modifications and impairments, while new climate regulations (such as carbon taxes) can increase maintenance and insurance costs, it said.
Geospatial data can also be utilised to project lending patterns, borrowers in climate-vulnerable regions or industries often struggle with creditworthiness, posing a financial risk to lenders as the probability of default rises. This data can also provide an analysis of underwriting, the insurance liabilities will rise as climate volatility damages properties, interrupts businesses and forces write-downs in investment value, the companies said in a statement.
