The client is one of the newest, fastest-growing, most successful, real estate developers in the country. Their portfolio ranges from condotels, condominiums, horizontal & vertical developments for both commercial and residentialuse
The challenge: How to make the best use of their extensive land bank to maximize the attractiveness of each real estate project that they will launch?
A property project launch needs to be optimally phased to when the local economy is at its strongest. Being able to think ahead, spotting emerging localities, and forecasting growth in the project locations are critical in determining whether a property type will be suitable to the area by the time construction is finished.
Using geospatial analytics and multiple curated government databases, Cobena conducted extensive research to assess which areas and developments will show the fastest growth and whether there was still untapped demand for the various project concepts under consideration by the client. Each of the client’s properties was then rated viz a viz the market potential and the concept being considered to arrive at the best fit.
Using Gateway, Cobena data analysts assessed current and potential sites by blending relevant socio-economic factors and creating 5 year forecasts for success drivers like population, neighborhood affluence, overall economic vibrance and ease of doing business .
This allowed the team to identify which locations showed the most promise in the short term.Other important considerations for the client included current level of traffic in each area, environmental risks and hazards (ie. Flooding, earthquake) as well as the comprehensive land use plan for each municipality. These were all taken into account when Cobena created the prioritization model for this client.
To determine the likelihood of success for each site, Cobena created interactive maps that displayed where the client’s landbank was located and where competition was (as well as projects expected to be launched in the short term).The result was a national heatmap that displayed a range of colors depending on the likelihood of success viz the intensity of competition in an area. Combining all data gathered, Cobena identified the most appropriate property type (horizontal, vertical development; residential or commercial property) for each of the areas under consideration.
In high potential localities, Cobena conducted site selection for highly attractive sites that were not yet known to the client.This formed the basis for further acquisitions by the client. Cobena also provided a Market Absorption Analysis for the best development mix for the top projects to increase the confidence of the sales teams in terms of which concepts would yield the highest uptake upon launch.