Comparative Market Analysis (CMA)
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Overview
Comparative Market Analysis (CMA) is the core process for factor-based parallel comparison of filtered and selected real-estate assets in Dubai. It automates the selection of properties that best match investor criteria, balancing potential returns against risk.
Preliminary Steps
- Filter properties by segment, building class, Cap Rate, low risk levels, and other criteria.
- Map evaluation: Identify attractive locations considering transport accessibility, flood risk, and traffic-accident exposure.
- Select comparables: Choose 2–3 buildings for detailed CMA.
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Define targeting parameters:
- Property type
- Property subtype
- Investment strategy
- Run CMA analysis in GeoAnalytics.
Comparative Market Analysis (CMA) in GeoAnalytics
Targeting Setup
Your chosen parameters form the inputs for the CMA algorithm, which selects the appropriate weighting matrix to score each comparable property. The goal is to maximize pre-tax profit (EBITDA) in line with investor objectives.
Weighting Matrix
GeoAnalytics retrieves dynamic weighting coefficients from the Smart Indexes API. Each property is scored on a 0–1 scale (or 0–100%) based on weighted metrics—including Cap Rate, ROI, and risk factors.
A perfect score of 1 (100%) indicates the best alignment with your criteria.
Results & Recommendation
The property with the highest CMA score and the highest projected EBITDA is identified as the optimal investment choice. GeoAnalytics presents a ranked list, complete with detailed metric breakdowns,to support your final decision.