Residential Market Study

Objective

To study the metrics of a residential financial model such as absorption, pricing, price increases in order to improve the reliability and preciseness of the predictive model.

Oportunidad

Develop a study that covers the following objectives:

Identify the physical attributes of the project, the zoning restrictions, and the location of the project

Identify the market area

Measure the demand

Identify the current and future supply

Measure the balance between supply and demand

Identify the competitive set of the project

Determine the absorption or selling time of the projects

Conclude the selling prices of the units and price increase

The type of project for which this type of report is designed is for a vertically constructed condo project (low rise or high rise) that may have multiple phases or towers. These are often found in master planned communities (higher income) and within macro projects (low-income housing) in Latin America.

Solution

Develop a market study with the following steps:

– Interview with the client and related parties

– Document request

– Property inspection

– Market data research

– Analysis and production of report

– Presentation to the client

Entregable

Analysis of the Project

Location

– Physical Attributes

– Zoning Analysis – and Restrictions

Market Demarcation

– Market area

Demand Analysis

– Demand Drivers

Supply Analysis

– Existing Inventory, Planned

Supply and Demand Equilibrium Analysis

– Oversupply, Undersupplied

– Market Cycle Identification