Real estate Market Intelligence, Consultation & Research

 

Increasingly, rigorous market research is being seen as a necessary prerequisite to the successful and profitable construction and disposal of property developments. Only a thorough and detailed understanding of the market will ensure that new schemes compete with and complement existing developments rather than merely duplicating them.

The penalties of inadequate market research are heavy: projects are difficult to finance because funders remain to be convinced that there is a demand for the floor space proposed; completed developments stand vacant because the accommodation provided does not meet the design, site or location requirements of potential occupiers.
The property industry appears not to have absorbed this lesson. Consequently, it is suggested that the surveying profession needs to show much greater interest in property market research and analysis and this paper has been written in an attempt to widen discussion on the subject. The vehicle chosen is a consideration of the high technology market and, more specifically, the difficulties encountered in trying to define that market. It is hoped that a detailed rather than a generalized approach will better illustrate the practical advantages and limitations of market research.

A Definition: The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face.

Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry in general. It allows business owners to determine the feasibility of a business before committing substantial resources to the venture.

Market research provides relevant data to help solve marketing challenges that a business will most likely face--an integral part of the business planning process. In fact, strategies such as market segmentation (identifying specific groups within a market) and product differentiation (creating an identity for a product or service that separates it from those of the competitors) are impossible to develop without market research.

market research

Involves two types of data

  • Primary information.

    This is research you compile yourself or hire someone to gather for you.

  • Secondary information.

    This type of research is already compiled and organized for you.

    Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.

    Most of the research you gather will most likely be secondary.