During real estate investment, you shall find yourself with the challenge of coming up with the right real estate product for your investment, for a particular market, which includes:
- Coming up with the right property type for the investment, say Residential, Commercial, Hotel, or Industrial Property.
- Coming up with the right product ratio for a certain product type, say number of two (2) bedroom to number of three (3) bedroom ratio.
- Coming up with the right size (Floor Area) of your product, say size of two (2) bedroom or three (3) bedroom units, according to market supply and demand dynamics.
- Coming up with Finishes specifications for your product type, for a particular location and market.
The solution to this challenge is to conduct a Feasibility Study and Market Research at the onset of the project. The Feasibility Study shall inform you on the most viable property type for a certain market, as well as ideal product ratio in situation where you have a mix of various property types in a development, say two (2) and three (3) bedroom units.
The Feasibility study further informs on the sizes (Floor Area) of the various products, say ideal size of rooms, size of units, according to market supply and demand dynamics for that particular location, or target market, in comparison with other products in the market.
Finishes specifications are also informed by the Feasibility study, in relation to projected income or pricing for the investment, target market, competitive landscape with other products in the market, and market demand.
WRITER OF THE ARTICLE:
This Article is written by Buildafrique Consulting Group, Kenya multi-disciplinary consultancy, that offers END-TO-END DEVELOPMENT CONSULTANCY, REAL ESTATE, and PROJECT FINANCE solutions through specialized subsidiaries. Among our solutions includes:
- Feasibility Studies and Market Research.
- Project Finance and Capital Raising.
- Project Management.
- Investment Design Appraisal.
- Quantity Surveying.
- Construction Cost Consultancy.
- Physical Planning and Planning Permissions.
- Environmental Management and Impact Assessment
- Real Estate Development and Structured Investment Solutions
- Property Valuation
- Marketing and Property Sales Agency
- Property Management and Facility Management