Market research provides information on different aspects of the market. For instance, suppose you are undertaking market research for the development of a residential project. You will need to conduct a thorough analysis of that specific area. In this article, we will demonstrate the type of market analysis needed for conducting market research.
Market research can be for highest and best use studies, feasibility studies/techno-economic viability studies, or general market research for residential project development. All of these types of research require market understanding, which will come from understanding the purpose of market research.
In this article, we'll go over a general market research strategy for a real estate project.
Two important aspects of market research are micro-market and macro-market.
The micro-market includes details about that specific area, which will have different primary and secondary market research from various sectors, either directly or indirectly. PESTEL analysis-political, economic, social, technological, environmental, and legal analysis-for a particular group will be included in the micro-market details. Macro-market research, on the other hand, includes detail that is economically driven and is analyzed from a global perspective.
Social infrastructure aspect
In general, market research necessitates information about the location and type of properties that are built. Social infrastructure is an essential component of any city; if a city lacks the necessary social infrastructure, any property constructed will not last because the main body of the city, which is social infrastructure, is missing.
There are currently places where residential and commercial properties are being developed, but due to a lack of necessary social infrastructure, building is lacking in terms of business. So, before investing in real estate projects, it is critical to comprehend the social infrastructure aspect.
Population growth and government institution presence
As a market researcher, what services are provided by government institutions in that locality should be identified, as Population growth and government institution both are proportional to each other; if a city is growing, it means government regulation and services are being provided properly; if the city is not doing well, it means government regulation and services are not being provided properly.
Market trends and On-going projects
Market trends are the foundation of any project; before investing in a project, every industry conducts a thorough analysis of market trends. Market trends provide specific information on market decline/growth, allowing one to determine the trend for investment, with market trends analysis of ongoing projects in the micro and macro markets is essential because it provides competitor data.
The most essential analysis is competitive analysis because it covers the majority of the project, which is to determine if we're willing to take the risk. It provides information on project capability, whether our project is viable or not, and can be determined in competitive analysis.
A critical analysis study is carried out to comprehend the truth of the project. In this analysis, the project's potential performance/Consumer affordability/future supply, absorption, and vacant property details should be examined. In reality, location and accessibility play a significant role in real estate; the property chosen for building should be evaluated in terms of footfall/absorption rate.
It is critical to comprehend the various perspectives of different organizational groups and various aspects of project, the following groups/aspects should be identified for a real estate project.
Mr. Prashant A. Gawali
MBA inConstruction Project Management