The Iranian housing market is in a chronic downturn, unrealistic expectations of sellers, and lack of transparency in transactions. In the meantime, startups such as Elo Malek are trying to provide a more accurate picture of market reality using technologies such as artificial intelligence.
On the sidelines of the Inotx Exhibition, we discussed with Sayed Aria Hosseini, Digital Marketing Expert in Elo Malek, about the solutions of this platform, the type of wall cooperation, and the challenges on the housing market digitalization route.
What does “Malik” do?
“We provide services at Hali Malik that their aim is to facilitate transactions, without directly involved in the process of buying and selling,” he explains. That is, we offer products that users can get into the transaction with more accurate information, not to be the part of the transaction ourselves. “
How does smart pricing work?
Hosseini explains about the structure of this tool: “We have three types of pricing systems. One of them is fully based on artificial intelligence and operates for a moment. The other two models are done by experts, both in person and online. “
“Our intelligent pricing is based on data collected from the entire country,” he said. “These data are analyzed along with the parameters that the user selects to provide a reasonable price for the property.”
What are the factors involved in pricing?
Hosseini noted: “We consider about 1 to 2 parameters for pricing each property. For example, the new price of that neighborhood, called Base Price, materials, facilities such as elevators and parking, floor, lighting, location (upright or downstream), previous transactions in that area, and of course the percentage that the seller adds as its expectations. “
Hosseini continues: “Some parameters are qualitative and some are a little. Real estate consultants usually have local information but not on a large scale. “By analyzing urban and national data, we provide analysis that is very difficult and time consuming at the individual level.”
Where did it start? Wall cooperation
“Our cooperation with the wall was starting in June,” he says. First, as a plugin alongside ads, our system examined whether the announced price was fair. The data has gradually increased, and now we offer this system in addition to the wall. “
According to Hosseini, only 5 % of Tehran was covered, but over time they reached 2 %, and now the city of Tehran, Isfahan and other major cities are covered by the system.
“Suppose a house uses a house on the wall and doubts it is fair,” he said. Instead of asking a few pricing consultants, he can get a precise and clever price. “This tool is very efficient for buyers.”
“Even if the seller is priced higher because of personal expectations, our tools show a real price range,” he said.
Traditional market resistance; Important Technology Challenge
According to Hosseini, the traditional market is still resisting technology entry. “We see this guard in many parts,” he said. But like what happened to online ad sites, one can hope to increase public acceptance over time. “
Hosseini says of the possibility of complete digitalization of the real estate market: “Yes, this process is possible. For example, some of the documenting steps are now online. “If the transparency of the transaction chain increases, the market can move to completely online.”
The gap between the ad price and the real price
One of the key points of the conversation is the gap between prices recorded in ads and the actual price of transactions.
“We made an analysis in October, indicating that the average price of the ads was about 2 percent higher than the actual trading price.”
“The last official deate to the transactions we have is July or August 1, provided by the central bank,” he said. After that, no data was released because it created the housing market for collapsing. “
Hosseini points out that a clear picture of the market downturn shows: “In August, in Tehran, 6,000 ads were recorded, but only about 3,000 actual transactions were made. It means less than 2 %! “This reflects the market of downturn.”
Elo Malik’s mission: Reduce price gap, creating transparency
If we can be the price reference that the seller and the buyer accept, we can help reduce the bubble. If there is a basic price that everyone accepts, the seller cannot raise his desired price without logic. This means transparency and helping the market exit from the recession.
Finally, Aria Hosseini emphasized the role of data in the future of the real estate market: “If we can have real trading data, we can predict with a higher accuracy in which areas the price difference and the actual price is more. Currently, our accuracy is about 2 % and we only have 2 % difference. “But with more access to information, this precision is higher.”
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