Market Research



Apply quantitative and qualitative methodologies to test the validity of project assumptions and discover new insights to increase appeal, velocity and profitability.

Developers tend to implement market research during various phases of a real estate development.  Secondary research, the collection and analysis of available data, is typically a significant component of the feasibility study.  Continually updating secondary data through the sales phase helps the development team keep current with changes in market conditions.  Available data can be adequate to establish a general market perspective; however, primary research methodologies such as interviews with consumers and real estate agents, focus groups, and surveys are often required to more accurately access the validity of project assumptions.  Architectural design, unit mix, common area space allocation, amenities, and price represent some of the project categories that can be tested with primary research to ensure that the project is properly positioned to capture market share.

Market research can be very cost effective when integrated into the overall sales and marketing plans.  For example, web registrants generated during the pre-launch awareness campaign can be used as the research sample; this is a simple method to leverage the advertising budget to support research.  Also, marketing initiatives such as promotional events and outreach to real estate agents can be excellent opportunities to include market research.  Incorporating research as a component of overall project marketing and promotion effectively lowers research costs through leveraging promotional and advertising expenditures.  In addition, the growth of web survey applications significantly reduces traditional data collection costs.

Web survey applications include functionality to administer simple surveys or advanced question sequencing required to support complex conjoint analysis.   Web survey applications also include built-in reporting features that automatically produce tables, charts, and graphs.  Once the survey goals and objectives are clearly defined and the questionnaire written, the survey can normally be launched within a week.  In addition to larger scale periodic surveys, short web surveys are ideal to include as a regular feature on the project website.  This form of continual collection of market input keeps the pulse of buyers; provides dynamic consumer input on product and marketing questions throughout the project; and, when survey questions are of interest to buyers, publishing survey results will encourage repeat buyer visits to the website.  While quantitative data supports statistical analysis to identify preferences, tolerances, trends from data sets, conducting qualitative research adds the human connection to data.

Qualitative research methodologies are especially effective tools to understand consumer perceptions and gain subjective insights.  Many researchers prefer to implement qualitative research prior to quantitative as a means to write the survey questionnaire.  Alternatively, adding qualitative methodologies after a quantitative study can add clarity to the data analysis.  As with all forms of research, qualitative participants must be carefully screened to ensure that their comments are representative of the demographic and psychographic buyer profiles.  Qualitative research can also be cost effective by pulling participants from the prospect database and tapping into knowledgeable real estate agents.  Formal focus groups conducted by a moderator and observed by clients behind a two mirror are often the method people associate with qualitative research.  The formal approach may be merited; however, other qualitative methods such as more casual one-on-one encounters, conversations with small groups, or focus groups with direct interaction between the client and respondents are very effective methods.   Face-to-face interaction between research participants and the development team can establish greater empathy with prospective buyers and be a catalyst for insights that may not have been as apparent when viewed behind the two-way mirror or on video.

Research, when properly designed and implemented, will improve the knowledge base  of the entire development team throughout the feasibility, design, and sales phases of the project.  Incorporating secondary and primary research into the overall marketing plan, leveraging the advertising and promotional expenditures, and using cost effective web-base survey tools makes research more affordable and thereby better utilized to ensure the sales success of the project.