Competition Analysis

Competition Analysis

With the ever increasing demand for housing and an amicable financing infrastructure, Real Estate today, is one of the most competitive sectors in India. It is extremely important for every developer to analyse the competition before one takes up a real estate project. An incorrect prediction of the competition for a project can mean losses to the tune of millions of dollras for both the developer and the real estate fund.

The competition analysis goes a step ahead of catchment area analysis which involves one-on-one assessment of the potential competition on the proposed development. The market competition is thoroughly analysed on various aspects and parameters to gain a better knowledge and understanding of the market. Along with demand-supply, price trends and ticket price analysis various other intangible aspects are also dealt such as design, product quality, specifications services and developer’s reputation in the market. Competition analysis can be performed on based on the project’s development class, location or value proposition. It helps the developer to determine the USP of the other projects and thus devise a marketing strategy for the proposed development.

The competition analysis adopts the following methodology:

  • Understanding the proposed development
  • Chalking out the competitor list and the key parameters for analysis
  • Determining both the current and future competition in the market
  • Conducting a through  field survey of the competition
  • Surveying brokers and prospective customers
  • Analysing the key metrics such as absorption, price trends, occupancy
  • Observations and final recommendations to determine the market strategy