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Real Estate: Strategic Evaluation
When a real estate developer -- present in the industry for thirty years -- operating in the north-eastern states of India faced a dilemma on the evaluation of options to optimally use a multi-acre land and how to proceed with the same, it was an opportunity to bring in fresh perspectives and an improvised understanding of the true potential.
The real estate developer had been managing government and private projects of massive scale for a while. In the light of the changing regulatory and economic landscape in India, the client was concerned about missing out on opportunities. With prior experience primarily in the areas of hospitality and healthcare, they were looking to diversify and had a few predetermined options -- restaurants, sports center, and shopping complex -- on which they needed insights and recommendations. After research and analysis at multiple levels, we showed the clients huge untapped potential in the additional options they had not considered initially: Theme Park, IT Park, Educational Institute, and Logistics Park.
From the listing of potential options to conducting market research to analyzing the cost of design for the recommended options, our structured approach left no stone unturned in giving a detailed evaluation of the options. On a broad level, the steps we followed are listed below:
Site visit and client engagement to have a broad understanding of the current scenario and a detailed understanding of the client’s vision, and planning subsequent steps accordingly;
Primary and secondary research to develop a base for further research;
360-degree market research with a well-defined methodology -- covering locals, traders, teachers, trainers, government authorities, lawyers, et cetera -- to have a proper understanding of the demographic requirements, opportunities and gaps, downsides, among other factors;
Competitors’ analysis to identify the untapped potential as well as live case study of different strategies;
Evaluation of synergy of the options under consideration and client’s strengths, weaknesses, and vision;
Feasibility analysis from varied perspectives: financial, regulatory, economic, political, legal, and design; and
Strategy roadmap to highlight the key steps in the development of different options.
Our recommendation, vis-a-vis the client's initial plan, showed a marked higher-than-expected return on investment.