Real Estate Market Research and Feasibility Study
Real estate development is a capital-intensive venture with high financial risk due to the volatility of outcomes if the variables and considerations in the project change. Market research and feasibility study for projects check the relevance and viability of such projects in order to anticipate risks associated with planning, the development process and marketability of the project; it puts relevant factors into account including economic, technical, legal, financial project scheduling considerations. This is important because we believe key to a successful property development is careful planing and exhaustive feasibility study.
Market research starts by exploring macro and microeconomic indicators. Economic indicators are used to forecast where the economy is headed and also foresee changes in variables that may affect the industry such as demographics. The market research also helps us understand the current trends in the real estate market in terms of property needs; understand current property rental and sale market, study the competition to compare and assess reasonable prices for the property. Our market researches use market data to determine the need and anticipated need in the market so as the developer can reduce marketing risk by offering a product ripe for the market at the correct price.
Further to advising the client on the need and price for the housing market, we anticipate risks and events that could delay the project and work on ways to mitigate and address those vulnerabilities at the conception of the project to avoid loss of money and time during the construction period.
Further to market research, we conduct a financial analysis. The analysis evaluates the project’s budget and other financial related contracts to establish its performance and suitability. We then use the analysis to see if the project is stable, solvent, liquid or gainful enough to warrant a capital investment and potential borrowing.