Construction market research and feasibility study for a real estate development project
PMR Consulting & Research was approached by a company engaged in highly diversified activities in the area of industrial production. The PMR team was asked to conduct a construction market research and an analysis of the feasibility of a planned project.
Project objectives
Our client had unused property of an industrial nature. To optimise their activities, the client was considering turning it into a building intended for other purposes. The initial plans included the creation of a large modern space which would include apartments, as well as commercial and industrial premises. Before investing the client wanted to know whether this idea had a chance of success – and if so, under what conditions.
Project details
The starting point for our analysis was an analysis of three scenarios for potential development. Each was then carefully examined by several PMR experts – a civil engineer, two architects and two business consultants.
An overview of the possible use of the property was completed by an analysis of the construction market in the desired location, and an examination of the impact of market factors on the success of the client’s plan.
As a result of the study, we created a discounted cash flow model for each scenario and specific recommendations regarding development.
Project results
As a result of this project, our client:
- learned the value of the property after its conversion into a residential building,
- assessed the available options and chose the optimal development scenario,
- received detailed documentation which included an analysis of the construction and housing market, financial and technical evaluation of the planned investment, and initial development plans for the property.
In PMR, we advise and assist in the operations of your company
Construction Business Unit Director