real estate depends on area priority and infrastructure development

1. PITER BISWAS
piterbiswas11@gmail.com

2. Location analysis (site and its
neighborhood)
Market research (demand and supply
dynamics)
Concept development (site planning,
master planning)
Financial analysis
Marketing and sales

3. Land has special characteristics compared to other economic
goods:
 the supply of land is fixed (with the exception of land reclamation)
 every parcel of land has a fixed location, which is a unique property
 and the use of a parcel of land affects the use and value of surrounding
parcels
 This last property, which is called an externality of land use, gives rise to
government intervention.
 The special characteristics, the externalities, and intervention make an
analysis of the land market rather complicated.
 Location analysis of a site cannot be separated from the life cycle of a
neighbourhood as it links site to the highest-and-best use
 Nature of the relationship among uses is determined by economic
functions
 The purpose of Location Analysis is to identify the characteristics of
location which affect the value and economic life of a specific property.

4.  The analysis of location requires a determination of desirability
and utility of the site and the degree and extent to which the site
shares the market for comparable and competitive sites in the
community.
 The analysis of location requires a forecast of the changes likely
to be experienced at the site due to probable future trends.
An appraisal of the present situation and knowledge of the
trends which affect the valuation of real property is necessary to
properly analyze the location.
The principle of change is fundamental to real estate appraising
and to the analysis of a location.
Value is created and modified by economic, social and
governmental changes which occur outside of the property itself.
It is necessary to predict the direction of the trend and determine
the future effect it will have on property values.

5. Micro market
demographics
Land
Availability
Competition
profiling
Catchment
analysis
Accessibility
and
infrastructure
Immediate and
perceived Demand and
supply scenario
Absorption
rates

6. physical and legal attributes of a property project are
evaluated in relation to location e.g. zoning, topography or
terrain, infrastructure, and skyline of the city.
the internal space planning of the site and its immediate
surroundings
the project’s characteristics: the relationship between the
site and its use and the total surroundings, over a given time
frame
the overall structure of an area within which the project lies
and the interrelationships within a community’s land use
pattern

7. Relationship between the surrounding
environment and a specific land use on a specific
land parcel over a given time.
a function of time as well as space.
Physical location: the geo-position of one site
relative to that of another.
Economic location: a site functions as a locus of
economic activity in association with other loci
within a dynamic urban fabric.

8. number of sides of a land parcel, a multi-sided parcel
is more suitable for retail, One-side parcel is more
suitable for residential
 functional layout of the facilities on site: ease of
ingress to and egress from the site , Placement of
structures and parking areas, key to the site’s
marketability degree of “friction”
 how well the site is linked to its environment.: traffic
flow inward or outward (goods, services, or people)
convenient access with a minimum of aggravation,
mode of transport for goods, overall access to the site
flow of traffic within the site: On-site “friction” can be
reduced by the placement and design of facilities,
which should ensure that the property has market
appeal, both functional and aesthetic.

9. site is physically fixed but economically flexible.
forces outside the land parcel alter the relationships of uses.
activities conducted on the site and the economic nature of the site
can change.
the placement of spatial attributes and layout
 The dimensions of the site, size and area, shape of the property
 Frontage, access and accessibility
 Placement of existing structures
how these attributes relate to specific functions begins with a
specific site within the context of specific use.
the locational characteristics of the neighbourhood and catchment
Connectivity and linkages to urban centers.
layout of basic amenities and facilities & general maintenance
requirements.
 highest best use as per market analysis or appraisal.

10. Demographic and social profiling of the area.
identification of the activities in the area.
study of the nature of the associations between these
activities.
analysis of the accessibility of the site to the surrounding
area.
evaluation of the impact of the total area on the site’s use.
economic activities in the neighbourhood or trade area
delineated by: physical, political, and socio-economic
boundaries.
time-distance relationships (travel times) to and from
common destinations.
Existing land uses to a major economic base study.

11. Population counts
Age profile
Spending habits
Average spending profiles (by product)
Social class
Nearby facilities (ATMs, Petrol Stations, etc)
Population projections
Counts of housing under construction
Thematically shaded maps showing, for example,
percentage population growth
Affluence profiles, matching locations to your most
profitable customer segments.

12. Gather data for specified shopping areas.
Understand peak trends and periods of Footfall.
Define the age and gender proportions of the
shoppers.
Provide solid data to support rental reviews.
Understand the consumer timing trends(daily,
weekly, and monthly).
Pinpoint high volume locations within the
shopping area.

13. Consideration must be given to economic trends of the
neighborhood, such as:
Industrial, commercial, agricultural and retail sales
activity.
Price and wage levels - purchasing power of individuals.
Employment.
Supply and demand for dwelling units.
Taxation levels.
Mortgage interest rates.
Building costs.
Population change.
Activity in the real estate sales market.

14. Degree of convenience or inconvenience involved in
moving people, goods, and services between different loci
of activity.
Degree of friction, or inconvenience, measured in terms of
time, cost, and aggravation. Accessibility is akin to negative
transportation costs.
↑ site’s accessibility ↓ cost to get to the site ↑ potential site
return.
Property values are more likely to increase in the future at
two types of locations:
Locations with favorable market fundamentals, that is, high
demand and low supply (market driven-value increase
potential).
Locations that are about to strengthen their locational
advantages due to new major developments and urban
transportation and infrastructure projects (development
driven value increase potential).

15. Highest and best use is defined as that logical,
legal, and most probable use which will yield the
greatest net income to the land over a sustained
period of time.
It is the most profitable, logical, and legal use.
The four standard tests for highest and best use
relate to that use which is:
 physically possible,
 legally permissible,
 financially feasible,
 and maximum productive.

16.  Innovations in Real Estate Design - ”The critical influence approach to effective
Work environments” by Diane Steigmeier 2008.
 Inside Gartner group Vol.XVII #7
 Core Net The Leader March/April 2009
 “Measuring the Added Value of Corporate Real Estate Management” by Anna-
Liisa Lindholm & Karen M.Gibler 2006
 Joshua Greenbaum, Principal Enterprise Applications Consulting Winter 2007
 www.ibef.org
 John M. Quigley University of California, Berkeley, USA or
quigley@econ.berkeley.edu.
 K. E. and Shiller, R. J. (1990) “Forecasting Prices and Excess Returns in the
Housing Market,” Journal of the American Real Estate and Urban Economics
Association.
 Green, R. K. and Hendershott, P. H. (1993) “Demographic Factors and Real
Estate Prices,” NBER Working Paper Series.
Reichert, A. K. (1990) “The Impact of Interest Rates, Income, and Employment
upon Regional Housing Prices,” Journal of Real Estate Finance and Economics.
 Justin Curlow justin.curlow@rreef.com
 Peter Hobbs peter.hobbs@rreef.com

17. Thank youThank you
for your kind attention and valuable time