ABSTRACT
This chapter highlights the importance of market research, emphasises why it must always be incorporated in every project and explains how it can enhance the success rate of the property developer. It discusses the differences between varying land types that further complicate direct market comparisons. The chapter highlights the relationship between the overall aggregate real estate market and the sub-sectors based on classifications of different land uses. It also examines the relationship between land use and geographic location to determine the exact sector of the real estate market to be the subject of market research. The chapter then discusses information as well as site-specific and strategic market analysis, forecasting and portfolio analysis. The models and associated formulas used for forecasting are usually closely guarded secrets but the underlying aim is always to reduce the number of assumptions to as few as possible. Reliance on facts and actual information is to be incorporated into the model as much as possible.
