CASE STUDY

Why isn't the best location always in the city center? Find out how DwellProperties found a better investment on the outskirts of the city.

Real Estate

About the client

DwellProperties is a boutique investment firm specializing in providing real estate investment advisory services to High-Net-Worth Individuals (HNWI) in Poland. The company focuses on comprehensive investment management and off-market properties—from defining expectations and sourcing and analyzing locations to executing and finalizing transactions.

A key differentiator for DwellProperties is its combination of expertise in data analysis, urban planning, engineering, and finance, all grounded in a values-based approach and long-term client relationships. Every investment decision is preceded by an in-depth analysis of the location, considering not only ROI but also the social context, the district's development prospects, and the alignment of the investment with the investor's values.

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Challenge

In the commercial real estate industry, there is a common belief that locations in the heart of major cities are synonymous with investment success. They guarantee prestige, high traffic, and constant access to customers. While often true, this assumption leads to intense competition, inflated purchase and rental prices, and, consequently, increased risk and lower investment returns.

How can you objectively evaluate and compare the potential of attractive but expensive city-center locations with properties situated on the outskirts?

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Solution

DwellProperties decided to combine its expert knowledge with location intelligence analysis, using the Placeme application to assess the potential of both locations.

Two groups of offers were analyzed:

  • properties located in the central parts of the city,
  • and an offer in a less obvious, residential location that seemed less attractive at first glance.

Using Placeme, the following were analyzed:

  • Traffic type and dynamics: The average foot and vehicle traffic in both types of locations were precisely measured, identifying key hours and days of the week.
  • Customer origins and paths: We examined where people visiting the vicinity of the analyzed properties come from. This helped us understand whether foot traffic is generated primarily by residents, office workers, or transit customers.
  • Competition and cross-visitation: We assessed the strength of local competition and whether the new investment has the potential to attract customers from existing locations.
  • Demographic profile and area development potential: We analyzed the demographic structure, the purchasing power of residents, and the pipeline of planned residential and infrastructure projects in the area.

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Results

The expert knowledge of DwellProperties, combined with reliable analysis from dataplace.ai, allowed us to view these locations in a new light, revealing the following conclusions.

  1. The cost of purchasing and renting property on the outskirts was many times lower than in the city center. This lowered the barrier to entry, minimized risk, and shortened the return on investment period.
  2. Combining lower initial costs with stable, high foot traffic resulted in a significantly higher projected return on investment.
  3. The analysis of planned investments confirmed that the area surrounding the peripheral location is developing dynamically, which guarantees a steady increase in the number of potential customers and the value of the property itself in the future.

DwellProperties proves that a true market advantage is built by combining experience and expert knowledge with precise data analysis, uncovering potential where the competition fails to see it. Placeme’s analyses gave DwellProperties the confidence to consciously walk away from a “safe” but expensive city-center location in favor of an investment with significantly higher profitability.

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