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REAL ESTATE MARKET ANALYSIS

A development company acquired a land plot in the suburbs of a regional center to build a residential complex of 400 apartments. Before launching the project, it was necessary to understand the real market demand and define the optimal concept for the development.

35%

Sales speed exceeded the market average

92%

Units sold at the excavation stage

18%

Higher price per m² compared to the initial concept

1 M

Additional profit generated through optimized apartment layouts

What Is Real Estate Market Analysis?

We study the demand for housing in a specific location, analyze competing projects, define the target buyer profile, determine the optimal apartment mix, and identify the ideal pricing range and value proposition for successful sales. This helps developers minimize risks and maximize project profitability.

Challenge

The developer had an initial concept for the residential complex: 30% one-bedroom units, 50% two-bedroom units, and 20% three-bedroom units, targeting middle-income families. However, the local real estate market was rapidly changing. Twelve competing residential projects were already being built in the area, and there was no confidence that the planned unit mix matched actual demand. A mistake in the concept could lead to slow sales and years of frozen capital.

Solution

We conducted a comprehensive real estate market study in the region. Our team analyzed twelve competing residential complexes within a five-kilometer radius, reviewing their pricing, planning solutions, sales dynamics, remaining inventory, infrastructure and positioning. This research showed that most competitors focused on standard two-bedroom units targeted at families, which created an oversaturated segment.
To understand demand, we processed two years’ worth of data from eight real estate agencies and online platforms, identifying which unit types were selling the fastest and at what price levels. In parallel, we interviewed more than two hundred potential buyers through phone and online surveys to understand their preferences, budgets, selection criteria and attitudes toward mortgages and investment purchases. The findings revealed that the market had shifted and was now driven not by families but by two fast-growing segments: young professionals aged 25–32 who preferred compact one-bedroom apartments, often financed with mortgages, and investors purchasing small units due to strong rental demand from students and young specialists.
Based on these insights, we recommended adjusting the project concept to significantly increase the share of one-bedroom units and reduce the proportion of two- and three-bedroom layouts. We also proposed focusing on compact, efficiently planned apartments and adding coworking and fitness spaces to make the residential complex more appealing to the updated target audience.
The developer implemented the recommended changes. As a result, the project launched with a sales pace 35% higher than the market average, reached 92% of units sold at the excavation stage, and achieved an 18% increase in price per square meter thanks to stronger positioning.

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