Property Evaluation & Investment Made Easy

February 28, 2007	(1 votes, average: 5 out of 5)  Loading ...
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There have been many misconceptions regarding realty valuation and market rates.

But now a handy and reliable tool to evaluate a property and location for property investment is at hand in the form of RESSEX ( Real Estate Sensitivity index).

A synonymous of Sensex, RESSEX analyses price factoring in availability and supply versus actual demand and tracks price elasticity. It is the numeric representation of potential ad variation of real estate industry and covers almost every new real estate development (primary supply). It enables you to view market potentiality in macro perspective.

There are various misconceptions about real estates rates. The efficient rate is one that is absorbed by the market negatively. Ressex enables you to know the market efficiency, demand and supply and would also be able to track rate dynamics.

There is this Efficiency Index, which is the ration of average demand & average rate. In other words, it is demand elasticity and measures the impact on demand given an increase of decrease in real estate rates. Demand Index, on the other hand is average annualized sales of the primary supply where gestation period in sales has been taken as an indicator to estimate the demand. Supply Index measures annualize supply, where total supply of the individual building is distributed over the duration of the building completion. RESSEX can be a very helpful tool for real estate investment. The impact of price variation, interest rat variation, Chang in Govt Policies, etc can be measured through it. RESSEX also represent the relative grading of city, suburb, area, locality, etc.

RESSEX that represents the outlook of real estate industry will cater to consumers, financial institutions, banks, developers, mutual funds and FDI and also to government bodies.

It’s helps the consumers and investors to know the potentiality of the location through efficiency of the location is improving then there is scope of appreciation and vice versa.
Similarly for other segment of the industry including Developers, Funds Company etc. would also be able to know market efficiency and its local perspective along demand and supply situation. Ie given a price what is the impact on demand, to what extent gestation time in sale has gone up with the increase in price.

And for the industry, one will be able to know what has been the impact on the market due to policies, regulations and issues which have hampered the supply like Forest land, TDR Corridor, Environment Clearance, etc.

RESSEX us accessible to the public at propertyscience.com and considering that it will be updated from time to time, it can really prove to be an authentic and reliable tool for property evaluation and investment.

Submitted by Saumya
Source from Real Plus

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