Reas - property in Poland, real estate market
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The Advisory Team supports developers in shaping their offer in a way that will optimally meet the expectations of the market, while ensuring maximum profit to the investor.
Within the two previous years we provided advisory services to such companies as: Bouygues Immobilier, Celtic, Espais, Fadesa Prokom, GE RE, ING RE, ORCO, Pirelli Real Estate, RED Development, Robyg, UBM, Yareal.
REAS experts advise both at the stage of investment planning and in situations where due to the evolving market situation it is expedient to introduce changes to the offer. Depending on the Clients’ needs, consultancy may involve the following elements
:

Analysis of location and its influence on the product

Location, location and once again location. Location determines to a large degree the segment of the market in which a residential project can be placed and constitutes one of the key criteria of choosing the apartment by the clients.

REAS conducts professional analyses of the location, allowing to assess the potential of the plot and define preliminary guidelines for the project which will bring the investor maximum return on the investment. Until now, REAS has prepared several hundred of this type of studies.

Competition analysis (Value For Money)

Value For Money (VFM) Analysis allows to define the strong and weak sides of comparable projects and their general competitiveness, taking into account factors significant for the client selecting an apartment (including the price, developer brand, location, implementation standard, apartment functionality). The results of VFM analysis are a trustworthy base for formulating guidelines concerning positioning, pricing strategy, the standard of implementation and marketing communication.

Definition of target groups and product positioning

REAS defines target groups for a specific project with respect to household type , combined with lifestyle preferences and financial status. Using buyers preference surveys and dedicated focus group studies, REAS analyses the key needs and expectations of potential clients.

Based on the conducted VFM analysis, focus group studies and the developer’s business plans, REAS defines the competitive position optimal for the business success of the project, including general guidelines for planning the product, price level as well as marketing and sales communication. 

Recommendations concerning the structure of apartments in the project (project mix) and implementation standard

The basis for defining the optimum structure of apartments is a correct assessment of the clients’ profile, their needs (number of rooms) and their financial possibilities (size). Using REAS unique methodology, the company models the structure of apartments, considering the number of rooms and sizes for the specific project.

Also based on the analyses of clients’ expectations and market norms, REAS defines the finishing standard of the building and apartments, allowing the developer to create a competitive offer while at the same time optimizing the budget of the project.   

Design consultancy

Functionality of the apartment is one of the key criteria taken into account by the client while acquiring the unit. Simultaneously it is one of the parameters which the developer can influence the most when designing the product.

REAS, basing on knowledge of daily project practice and residential market realities, supports the cooperation between the developer and the architect aiming at the optimization of the project in the context of sales success. REAS experts take into account such factors as: apartment and room areas appropriate for the given segment, the proportions and layout of the rooms, as well as communication arrangement of the unit and the whole building. The service usually takes the form of preliminary recommendations and later on an opinion about the solutions presented by the architect.

Pricing

Based on pricing analysis of competitive projects and clients price flexibility, REAS defines the achievable price levels. After analyzing the unique characteristics of specific residential units, REAS devises detailed price lists for apartments in the investments as well as for garages and storage rooms.

As the sale progresses and the local residential market changes, we prepare updates of the price-lists devised beforehand. 

Recommendations concerning the phasing of the investment

In the case of large projects, dividing the development into phases allows to minimize investment risks and financing costs. Phasing the project ought to take into account on the one hand the achievable rate of sales and on the other hand the technical conditions. REAS advises how to define the phases and optimum schedule – from the sales and building point of view –of implementing them.

REAS devises forecasts of sales rates (also in scenarios, accounting for various price levels and sales support programs) and defines the optimum division and moment for introducing successive pools of apartments to the market. 

Contact

Paweł Sztejter
Partner, Head of Development Consultancy
+48 22 380 21 00
pawel.sztejter@reas.pl