How do you analyse the market potentiality of a Residential Real Estate Project?

Your client / boss wants to set up a Residential Project at a particular city and wants your help to

understand the potentiality or say you are an analyst and you need to assess the potentiality of a

project at a particular location. How will you analyse on that?

 

The assessment shall entail the following:

  • Map location and demand attributes to new supply information
  • Survey of new supply over the next few years across real estate segments
  • Location assessment and analysis
  • Sample survey of demand for residential real estate in key catchments and corresponding micro markets

 

The approach has two phases :

  • Exploratory Research & Survey Preparation Phase
  • Survey & Analysis Phase

 

 

The broad steps of the Exploratory Research & Survey Preparation Phase are as follows:

  • Literature Study
  • Secondary Research
  • Qualitative Survey
  • Instrument Design

 

The broad steps of the Survey & Analysis Phase are as follows:

  • Quantitative Survey
  • Data Analysis

 

The activities related to the Exploratory Research & Survey Preparation Phase are as follows:

  • Qualitative discussion with prospective buyers
  • Visit to the site where the project is anticipated
  • Discussion with brokers, sales agents of competing projects in surrounding areas
  • Listing of most preferred amenities
  • Mapping primary factors for the project selection

 

The activities related to the Survey & Analysis Phase are as follows:

  • Quantitative survey of individuals interested in purchasing
  • Data Gathering & Analysis
  • Report Generation

 

The aspects that are studied in details are as follows:

  • Respondent Profile
  • Overview of the city
  • Location Assessment
  • Survey Findings
  • Developer profile
  • Market Sentiments
  • Supply of residential space

 

Splitting of Respondent profile

  • Ownership Wise
    • Rented
    • Family House
    • Self owned
  • Profession Wise
    • Service
    • Self employed
    • Business

  • Household Size Wise
    • One to Three
    • Four
    • Five
    • Above Five
  • Age Group Wise
    • 25-30 years
    • 31-40 years
    • Above 40 years
  • Basis Type of Property
    • Independent Houses
    • Villas
    • Flats/Apartments

 

Overview of the city:

  • About the city
  • Connectivity / Key Transport Infrastructure
  • Road (Key Highways)
  • Airport
  • Railway Station
  • Key Demographics
  • Total Population
  • Population Growth Rate
  • Population Density
  • Literacy
  • Demographics
    • Split of households by Family Size

  • Split of households by Dwelling room

  • No. of households by Household assets

  • Population Growth rate of Key Districts

  • Key Employing Industries

  • Tourist Spots
  • Key Residential Development areas

 

Location Assessment

  • Transport Infrastructure
  • Approach Roads

  • Key Utility Services
  • Schools/Colleges/Institutes
  • Hospitals/Banks/Malls
  • SWOT

 

Survey Findings

  •  Location Preference

  • Preferred Composition

 

  • Importance of factors while deciding about the purchase of the residential property
  • Importance of facilities in neighbourhood while selecting the location of residential property
  • Flat Amenities / Features – Current vs. Preferred
  • Complex Amenities – Current vs Preferred
  • Infrastructure Amenities – Current vs Preferred
  • Comfort level with different communities and preferred facility management services

 

Developers Profile

  • Consideration of factors while checking the developer’s profile

  • Awareness – Major Developers
  • Customer Perception of Major Developers
  • Primary Sources of information while searching for residential property

 

Market Sentiments

 

  • Did the respondent invest in residential estate earlier
  • How long did they invest
  • Types of investment made in residential property in the past
  • Have they sold the property or still hold it
  • How long will they wait before selling the property
  • Break up of preferred funding sources etc.

 

Supply of Residential Space

 

  • Lakhs Sq. Ft. to be built

 

  • Types of Residential projects popular with Builders
  • Key areas and Key Projects coming up
  • Key Competitors
  • Key Amenities Offered
  • Property rates and unit sizes in Key areas
  • Booking Levels
  • Land reserved for residential projects
  • Profile of key projects

 

 

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