As Magicbricks.com (MB) continuing on its path to empower users with information and advice on all property related matters, has collaborated with the world renowned Indian Institute of Management, Bangalore (IIMB) to create a reliable and usable index that will gauge the mood and sentiment of buyers – whether they are end users or investors.
This joint initiative between IIMB and MB will create a reliable and trustworthy determinant termed as the MB-IIMB Housing Sentiment Index. Sentiment plays a significant role in driving markets; and this Housing Sentiment Index (HSI) will gauge and quantify the buyers’ mood or consumer sentiment and link this back to actual real estate performance.
Speaking about this joint initiative, Sudhir Pai, Business Head, Magicbricks.com stated, “THE MB IIMB HSI will determine how buyers and investors view the market, which in turn, influences their purchase decisions and aggregate demand. The index is likely to become an early indicator of how markets would perform in the future. Read alongwith PropIndex, which reports extensively on quarterly market performance, this should help all stakeholders to better understand past as well as potential future real estate market performance.”
Prof. Venkatesh Panchapagesan, Head of IIMB-Century Real Estate Research Initiative, IIM Bangalore explained, “We are very pleased to collaborate with the market leader in the online real-estate space to create this innovative index. While there is no direct measure to assess market sentiment, the MB IIMB HSI will use various proxies to compile composite sentiments from active homebuyers in markets across the country. As part of this effort, IIMB will conduct nationwide surveys to create two indices- a Sentiment index and a Sentiment Strength index- to gauge buyers’ view of future home prices. These surveys will be conducted with the help of Magicbricks.com.”
With access to the largest aggregated user base in real estate in India, Magicbricks.com is in the unique position to provide a reliable data set, which is representative of the actual universe of Indian real estate buyers.
Magicbricks.com has a considerable arsenal of sophisticated tools to measure and track real estate market performance, through pioneering platforms, like the PropIndex, Property Pulse, and GuruTalk. The MB IIMB HSI will uncover another layer of clarity and further enhance transparency in the real-estate space.
Property portals are incredibly rich sources of consumer data, every activity on the site from where they arrive to how long they spend on the site, to where they eventually leave the site and to where they then go on the web is a pointer of incredible insight into the property market as seen from property shoppers. Add to this the raw data that can be collected on each listing that bring to light trends in inventory, supply, price indication as well as pace of property transactions and marketing activity and you can see the opportunity that this data holds.
The challenge for portals is to be able to bring insight and perspective to this rich data and that is where a partnership like this brings value. Naturally partnering with a academic institution provides creditability and stature, it also provides a rich source of talent, students who are interested in such analysis and can provide fertile ground for interns and future employees.