Development of the Concept
Project Consulting consists in development of the concepts and evaluation of the real estate projects and includes the concept for the development of land for construction of cottage settlements, shopping centers, office buildings and residential complexes.
Development of a competent and knowledgeable concept at the early stage is the foundation of success of any project. The elaboration of the concepts of development projects, whether it is the concept of building a country village, residential complex, shopping or business center shall always be based on a particular algorithm, which consists of two parts:
• study of internal and external factors of the future project, based on which the analysis of the best territory use is performed;
• creation of the concept.
The project elaborated is the basis for further work on the development project from compiling terms of reference for design to promoting the project in the market.
1. Analysis of the territory potential
The primary object of any project in real estate sector is a certain territory. The development of any project begins with an assessment of the land site. At this stage one studies the documentation of the site (purpose, permitted use, cadastral plans, encumbrances and availability of public utilities); restrictions on development and analysis for compliance with the urban development plan, state of the territory at the time of study, analysis of the transport infrastructure of the district, analysis of the physical characteristics of the site, analysis of the territory environment and potential of its development. Based on the data obtained one shall form a judgment concerning the potential of the site and thus internal factors that can affect the future project become clear.
2. Concept development - analysis of the real estate market
The second phase of the work on the creation of the concept of the project is the analysis of the market. Based on the study and evaluation of the site one identifies the real estate segments for development within this territory. The analysis of the market segments includes the study of the demand\supply and analysis for compliance of supply and demand. Analysis of the supply is the definition of market capacity, segmentation of the proposals in the segment, studying the characteristics of potential competitors and analysis of the pricing in the segment. Demand analysis is the definition of capacity demand, segmentation of potential buyers (tenants), studying social characteristics and making a portrait of the potential buyer (tenant), study of the dynamics of demand on the ground of the sales dynamics of competing companies and study of consumer preferences.
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To get a full picture of the territory in question SWOT-analysis is conducted. It is performed by analyzing the potential of the territory and market analysts made earlier. Situational analysis in real estate sector (SWOT-analysis) is the study of the positive and negative aspects of internal and external factors that affect a hypothetical project. It is conducted at the evaluation of the concepts, land sites and real estate units based on the study of market factors and own features of the object under the study.
Having performed the SWOT-analysis one shall analyze the best usage, which determines the essence of the future project. Analysis of the best and most efficient use (best use) is applied within the real estate sector to determine the best of the possible hypotheses associated with the given territory. Best use analysis is based on “cutting off” the options of legal, financial and physical admissibility, maximum profitability and marketing effectiveness. The concept of development of the area shall reflect the market needs and opportunities for implementation to the maximum extent possible.
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