Investment Score Methodology
What is HomeRadar Investment Score?
HomeRadar Investment Score is an analytical indicator designed to help users compare real estate projects using a consistent set of project-level and market-level factors. It is a comparison tool, not a recommendation to buy, sell or invest.
A higher score means that, under the current HomeRadar model and available data, the project appears more attractive in the selected analytical scenario. It does not mean the project is risk-free or suitable for every buyer.
What the score may consider
Factor group | What it means | Risk-safe interpretation |
Estimated rental yield | Model-based relationship between purchase price, rental assumptions, occupancy and costs. | Indicates scenario attractiveness, not guaranteed return. |
District demand | Relative market interest, tourist visibility, rental activity and buyer demand signals. | A district-level assumption, not a prediction for a specific apartment. |
Price positioning | How a project price compares with selected market references or district expectations. | A comparison input, not an official valuation. |
Developer data signals | Observable portfolio information such as completed projects, active projects and market presence where available. | Not a legal audit, certification or statement about reliability. |
Liquidity potential | Potential ease of resale or rental based on location, unit type, project profile and demand indicators. | An analytical estimate, not a promise of resale or rental success. |
Review points | Factors that may deserve additional due diligence. | Not an accusation, legal conclusion or statement of wrongdoing. |
How inputs are normalized
Different projects have different price ranges, districts, completion timelines, unit mixes and developer profiles. To compare them more consistently, HomeRadar may normalize raw inputs into comparable scales. Normalization helps reduce the effect of incompatible formats and makes ranking more readable.
For example, net yield, occupancy, developer score, price positioning and district demand may be converted into model-friendly values before being combined into a final score.
Scenario-based scoring
Investment attractiveness depends on the buyer’s strategy. A project that looks strong for short-term rental may not be the best option for capital preservation, family use or low-risk ownership. HomeRadar may therefore use strategy types or scenarios such as rental income, balanced investment, capital appreciation or lifestyle-led purchase.
What the score does not mean
· It is not investment advice or a personal recommendation.
· It is not a guarantee of rental income, resale value, occupancy or capital appreciation.
· It is not an official property valuation.
· It is not legal, tax, financial, engineering or construction due diligence.
· It is not a statement that a developer or project is safe, unsafe, good or bad.
Why scores may change
Scores may change when prices, rental assumptions, occupancy assumptions, district data, developer portfolio information, completion timing, market conditions or methodology weights change. A score is a snapshot of the model at a given time, not a permanent label.
How users should interpret score ranges
Public label | Suggested meaning | Safe wording |
Strong model fit | The project performs well under the selected scenario. | May be worth closer review if it matches the buyer’s goals. |
Balanced profile | The project has both strengths and trade-offs. | Should be compared with alternatives and verified independently. |
Selective fit | The project may suit a narrower buyer profile or specific strategy. | Requires careful review of assumptions and personal priorities. |
Additional due diligence recommended | The model identified factors worth checking more carefully. | This is not a negative conclusion; it is a prompt for further verification. |
Recommended buyer checks
· Verify current price, availability and payment terms directly with the developer or seller.
· Check legal documents, ownership status and contract terms with a qualified professional.
· Review actual construction progress and completion timeline.
· Compare rental assumptions with real unit-level competition, building quality and management fees.
· Stress-test the investment case with lower occupancy, lower ADR, higher costs and delayed resale scenarios.