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Property Monitor’s "dynamic" index to track Dubai property trends

PMDPI uses proprietary algorithms and machine learning to repopulate index and curb inaccuracies and misrepresentation

Property Monitor’s "dynamic" index to track Dubai property trends [representational image]
Arabian Business / CW archives
Property Monitor’s "dynamic" index to track Dubai property trends [representational image]

UAE real estate data and insights platform Property Monitor, which is a product of consultancy and chartered surveying firm Cavendish Maxwell and is accredited by the Royal Institution of Chartered Surveyors (RICS), has announced the launch of the Property Monitor Dynamic Price Index (PMDPI) - a real estate market index that covers property price movement in Dubai.

Through the PMPDI, Property Monitor will provide a macro-view of Dubai’s property prices keeping January 2008 as the base period. The indices take into account 42 geographic communities in the emirate.

According to the company, the PMPDI family of indices leverages historical datasets, proprietary algorithms, and machine learning to identify underlying trends in property values. 

The PMDPI also “dynamically” repopulates the index by incorporating datapoints or datasets that become available, thus, overcoming historical inaccuracies or misrepresentation of values and trends. 

This implies that the PMDPI will always reflect the most up-to-date information. The index also limits the possibility of distortion of data, by following a cleansing process that removes extreme values, outliers, atypical, and potentially erroneous datapoints from the dataset.

Furthermore, the 3-month rolling average permits the indices sufficient time to react to short-term price movements, but prevents misrepresentations caused by one-off events such as the release of a large amount of property supply into the market or unusual, high-value transactions.

The datasets will be used by banking clients, regulators, and property professionals who require accuracy and data integrity that goes beyond indices based on ‘asking prices’.

Commenting on the launch of the index, chief operating officer at Property Monitor, Zhann Jochinke, said: “In emerging markets like ours, additional information often becomes available when historical data is digitized, and when previously confidential datasets or those with limited access are made public. The Property Monitor Dynamic Price Index has been designed to dynamically reflect these additional datasets to provide the latest and most accurate view of the real estate market, which is a key pillar of the Dubai and UAE economy.”

Sharing her thoughts on the PMDPI, partner and head of Residential Valuation at Cavendish Maxwell, Sofia Underabi, said: “Key to its derived solution is Property Monitor’s understanding of local and international regulatory requirements along with the technologies required to align with the Fintech strategies of the region’s key sectors including banking and real estate. The new index family is a leap forward in this direction.”

The PMDPI will provide updates on a monthly basis, and release findings within the first working week of the month.

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