User talk:Moreashok224

very structure belongs to its location and time. The prognosis analyses the plot/location characteristics with prevailing market dynamics and delves into various options to find out the one which gives highest and maximum development realization. Structure of prognosis:

Step-1: Subject-site assessment

Primary visits and surveys are made to and around the subject-site to get a feel of the area.

Drawing a catchment of the subject-site generally it is 5 km but depending on the site and development mix the catchment area varies Field survey of the catchment Regional profile of the catchment Land use distribution in the catchment and Infrastructure and demographic/population profile within the catchment Connectivity and accessibility Environment and topography as well as land gradient within catchment

Through analysis of catchment and influencing competition is imperative for ensuring success of your project.

Step-2: Assessment of Prevailing Market Dynamics

The second step involves detailed analysis of performance of the products within the catchment of the subject-site. This involves deeply analysing the market inventory, sales, price, volumes and offtake velocity of the market as a whole as well as competition level. This analysis would cover all the segments individually such as

Residential Commercial Hospitality Retail Other unconventional options

Using our quarterly updated data of the market, we asses the past trends and through the leading indicators future course of the market is also taken into consideration.

The primary supply data is collected by filed surveys.

Step-3: Ideal Development Mix, Product Mix and Fair Price Assessment

Under this process we analyse the performing and risky products. We also analyse the price and velocity (offtake percentage).

Demand drivers in the catchment for residential/commercial/hospitality options The best mix of if undertaking more than one option The most popular product in the catchment The best ticket size for each kind of product Gradation and Mapping of the competitive projects on the basis of their value offerings and price

This phase is extremely crucial in the overall success of a project as it determines the options of development mix. Depending upon the available FAR/FSI, suggestions are made to determine the options of development mix.

Step-4: Financial Viability

A detailed cashflow analysis is carried out to ascertain the best performing option and also to determine the timeline and phases of the development. A detailed financial-economic model to show scenarios with different outright and lease rates, etc. Detailed calculations shall include

Total Cost & Revenue Monthly Cashflow Peak Negative Cashflow Equity & Debt component Return on Investment Return on Equity NPV IRR

Sensitivity analysis to check the viability of the best option at various outright rates is given importance. And timeline of the suggested development mix is made.

Additionally we also carry out two specific services according to the need of the client

a) Product Viability Study

Is to ascertain that the envisaged development and product plan of the developers are correct or risky. The overall objective of the study is to analyse the competition and validate the envisaged product-mix at the subject-site. The typical approach goes like this:

Assesing market dynamics of specific product mix such as 3BHKs and 4BHKs in a specific region Assessment of its diffusion in the micro-market Product performance as per various cost brackets/ticket sizes (such as less than Rs 25 lac, Rs 25 lac to Rs 50 lac, over Rs 1 core etc) Demand and efficiency study of such flats on the subject-site and catchment Quality and profile gradation of competitive projects in the catchment Assessment of optimum price points to arrive at base feasible selling rates How much could be the absorption capacity and offtake velocity (that is how much time will a project take to get consumed)

Again the catchment area is determined depending upon the scope and profile of the study

b) Risk Reports

Risk Reports are carried out primarily to asses the state of the market and measure the price correction during oversupply scenario or default risks in the market. The approach followed is:

Firstly to gauge the market dynamics and price behavior To analyse the market trends with regard to demand, supply and price movements The scientific equations are established to determine the price patterns of the geography

Offtake velocities, market efficiencies, affordability, and the prevailing price metrics are used to ascertain the fair price and gaps and thereby prevailing rates and scope of corrections are determined. Overall report has four sections:

Assessment of the prevailing market Assessment of market risks Assessment of future outlook Gradation and Mapping of the competitive projects on the basis of their value offerings and price