REAS provides assistance to the boards of developer companies and investment funds in their strategic decision making. In particular we support them in their assessment of the market’s attractiveness and devising corporate strategies of entering and expansion in new geographic areas and market segments.

REAS founders’ participation in establishing a free developer market in Poland since its very outset in the early 1990s, as well as its systematic monitoring and analyzing, contribute to understanding and accurate forecasting of processes at work on the residential markets in post-Communist countries.

The grounds for strategic decision-making are provided by market analysis, which enables company management’s preliminary appraisal of its attractiveness. The scope of such analysis is individually tailored to the company’s needs, yet it typically includes the following:

• general characteristics of the market in its regional context: size, maturity, market cycle, etc.
• demand drivers (economic, demographic, political, legislative, etc.) in mid-term and long-term perspectives
• land market, secondary market, and housing rental market
• housing prices and their dynamics
• land costs, construction costs, margins
• standards of the offering, its quality, and finishing
• difficulties the developer may encounter in the investment process (administrative procedures, their transparency, employment structure, land availability)
• general appraisal of the market’s attractiveness in its regional context.

The starting point for the next phase of strategic planning is analysis of the company’s objectives and potential, including, among other factors, its strategic objectives, financial capabilities (own equity and external financing availability), susceptibility to risk, experience in the real estate market, residential market and its individual segments, as well as company’s image.

Based upon the foregoing analyses, we define the market areas and the most beneficial positioning of the company on the market. The strategy considers the following:

• geographic range of operation
• market segments
• scale of business and individual projects
• positioning, i.e. company-specific characteristics (price, quality, technology, prestige)
• strategy of building background for company’s business (land portfolio buildup, acquisition of existing companies).

After the company decides on the operating strategy, REAS will assist in its implementation by means of:

• consulting at the stage of land portfolio building – due diligence analyses and valuations of sites
• consulting at developer companies’ M&A – due diligence analyses of companies, appraisal of their know-how and land assets
• marketing strategies for developed projects and consultancy at their design stage
• financial consulting – feasibility analyses, business plans, financing acquisition
• development process management
• marketing and sales management.

Kazimierz Kirejczyk
President of the Board, Head of Research & Knowledge Management
+48 22 380 21 00
kazimierz.kirejczyk@reas.pl