5 November 2020, text: Mirjam Arnold, photo: PriceHubble
Founded in 2016, the PriceHubble PropTech start-up can point to some very successful growth figures in the European market. A PropTech company is a company that digitalizes procedures and processes in the real estate sector that were previously handled by analogue means. Asset managers and project developers can use PriceHubble's data to check portfolios for their optimization potential, while consultants and brokers can get a comprehensive location analysis and valuation for a specific property at the touch of a button.
PriceHubble has developed an automated valuation model (AVM) that combines various technologies such as big data analysis and forecasting algorithms. This makes it possible to arrive at a precise calculation of a property’s statistically most likely market price. However, the model not only takes account of the current and forecast market and rental value, but also considers other factors such as location criteria (e.g. accessibility or noise levels), plans for new construction projects nearby and socio-economic developments in the neighbourhood. This provides a basis not only for the statistically most likely market or rental price of a property, but also for a forecast of how it will develop.
According to Markus Stadler, COO and co-founder of PriceHubble, the company’s vision is based on a two-pronged approach: «Firstly, our aim as a guide is to contribute to greater transparency in the housing market. Secondly, our solutions based on our automated valuation model and digital property and location valuation aim to offer genuine added value for the requirements of companies along the ‘property’ value chain.» A trend towards integrated property services can also be observed across national borders: from searches and valuations through to financing, insurance and analysis of price trends. It’s precisely these interfaces that form the basis for PriceHubble's business model.
The Helvetia Venture Fund invested in the start-up for the first time in 2017 and also participated in the last financing round in summer 2020. In addition, a collaborative venture with Moneypark, as part of Helvetia's «Home» eco-system, was an obvious move and was developed quickly. Thus, during the course of their financing project Moneypark customers can access information on the value and future performance of their property.
A joint pilot project with Helvetia itself was recently implemented to establish a benchmark in the area of rents. Helvetia has compiled data on properties with the aim of calculating possible market rents. These data were then used as benchmarks for comparison with customers’ own rents. PriceHubble’s technology, coupled with the data and analytics approach, enabled a detailed analysis to be carried out. This would not have been possible in this form using existing resources. Markus Stadler is pleased with the smoothly functioning cooperation, which extends beyond such projects: «Helvetia is also a strong network partner for us in terms of new investors and business sectors». Helvetia is also keen to build on this cooperation, as Martin Tschopp, Helvetia’s Head Customer and Market Management, explains: «PriceHubble delivers a great deal of added value for us and there will be more joint projects in the future.»