THE DEVELOPERS
Infrastructure Developers
Land Developers- Master Developers
Project Developers
DEVELOPMENT CYCLE/
PROCESS
DEVELOPMENT PROCESS
1. Land acquisition & Consolidation / Plot Selection
2. Licensing process & Zoning
3. Predevelopment Surveys
4. Product Identification
5. Project Scheduling
6. Product Design & Budgeting
7. Marketing material preparation & project launch
8. Inventory Creation & management
9. Sales
10. Project Tendering & procurement
11. Cost Management
12. Construction Management
13. Project Handover and Facility Management
1,2-PLOT SELECTION &
ZONING
Plot Identification
Property Title Search via legal cell and Revenue officials
Verify at government offices/ master planner records
Verify Infrastructure
Road
Electricity & Broadband
Sewage
Water connection
Verify Development Restrictions from
Zoning restrictions: F.A.R, Setbacks, Height, Ground Coverage,
Use
Environmental concerns
Heritage authority
Coastal authority
3-PREDEVELOPMENT
SURVEYS
1. Topography Survey with Utilities ( over & under
ground)
2. Hydrological Survey
3. Geotechnical Survey
4. MARKET SURVEY- Two sides: customer & supplier
via
Specialist agencies- CBRE, JLL, COLLIERS, CUSHMAN, etc
Business development team
Direct sales team
Channel Partners ( agents)
Self verification
3A- SUPPLIER
( COMPETITION) SURVEY
Products Range available in market ( with design & specs)
Products in launch stage
Current inventory
Absorption rate
Facilities/ Features being provided by each
Competitors USPs
Negatives- public perception
Identify
Monopolies/ Oligopolies/ cartels
Entry Barriers
3B-CUSTOMER SURVEY
CUSTOMER.CONSUMER
Three sale to reach Customer to Consumer: prelaunch, launch,
handover
market size and share
marketing channels
sociographics (e.g. beliefs and attitudes, interests, lifestyle factors).
customer demographics (e.g. age, gender, income, education)
needs and expectations
Attitudes: towards you and your competitors
household composition
professional groupstraders/employees/ industrialists/ private/
government
Self paying/ home loan
Salaried/ retired
3C COMPETITIVE STRATEGY
Choosing POPs and PODs
Cost- volume driven, frugal, efficient for commoditized
product
Differentiator- Product features(USPs), channels, image,
services, customization
Niche- Boutique Player
Production concept- cost strategy
Product Concept- quality strategy
Marketing Concept- sense & respond
Societal marketing- community based.
4 PRODUCT IDENTIFICATION/
MARKET POSITIONING
Survey data analysis
GAP IDENTIFICATION
Market Segment identification/ decision
Product market positioning- based on
Developer brand,
Geographic location,
Target Segment
PRODUCT MIX & PLACEMENT
Product Mix
Eg: Residential
Studios
1BHK
2BHK
3BHK
4BHK
Penthouse
Placement: class separation
Floors
Separate towers
Sale Risks & Strategy
Slab
towers
PRODUCT SPECIFICATIONS
Target Consumer Preferences
Product Target Position
Cost
Durability
Availability
Strategic Partnerships with vendors
Part of Product Features
Eg:
Windows- Wooden / UPVC/ Aluminium
Flooring: Italian Marble/ Indian Marble/ Vitrified Tiles/ wooden
Caution
Clarity is must, never mix, start a fresh is feasibility test fails
PRODUCT PRICING
Pricing objective: survival, max profit, market share
Demand
Costs: fixed & variable
Competitors costs, prices & offers
Unit Cost= variable cost+ fixed cost/ units area( prorate basis)
1. Developers wish!
2. CAPM method ( capital asset pricing model)
Target Profit: Rf + industry beta( Rs-Rf)
Rf: risk free return
Beta: indicator of risks
Rs: Return from stock market
Eg: Target= 9%+1.7(17%-9%)= 22.6%
Target Price= unit cost+ R X investment/ unit area
PROJECT SCHEDULING
Design Schedule
Launch schedule
Sale schedule
Approval schedule
Procurement Schedule
Construction schedule
Target Completion/ Handover
REVENUE BASED AREA
ANALYSIS
Primarily three Kind of Areas in every Project
1. Direct Revenue areas: residential units, hotel
rooms, office, shops, parking
2. Indirect revenue areas: restaurants, cafes,
meeting rooms, parking
3. Loads: areas which are must for functionality, but
do not earn any direct revenue : corridors,
lobbies, parking
Generally, Higher the load area, higher the luxury
quotient.
FEASIBILITY ANALYSISCASE STUDY
SPACE PROGRAMMING
SITE AREA ANALYSIS
PARKING ANALYSIS
PROJECT COST
REVENUE & PROFIT
6-PRODUCT DESIGNDESIGN MANAGEMENT
Consultants : search, prequalification, short
listing, interviews
Contracts: Design Briefs, obtaining quotes,
negotiation, and contracts
Design Management: Technical reviews &
guidance to consultants team
Budgeting
7-MARKETING MATERIAL
3D pictures
Animation /videos
Interactive aps
Branding Strategy
Brochures
Advertisements
8-INVENTORY / STOCK
Inventory creation- based on product design
Identification of attributes
Pricing of attributes ( adds approx. 3% over base
price)
Strategy over Parking, facility management, etc.
Product Release strategy
Sale Contracts involves legal, planner, accounts,
sales, etc.
Software used- Oracle, helps in MIS
This is primarily handled by Customer Relations
Department (CRM)
RESIDENTIAL
Unit Types:
Studio, 1bhk, 2bhk, 3bhk, 4bhk, penthouse
Unit Components:
living, dining, kitchen, bedrooms, dressing, washrooms ( toilets),
balconies*, powder room, Prayer room(Puja), Store, gym, family
lounge, home theatre, etc.
Unit Sizing: width X length= Carpet Area
Built up Area= Carpet Area+ Wall Area ( % over carpet area e.g..
13%)
Unit Area= Built up Area+ Balcony area*( add as % over built up
area - e.g. 16-20%)
*Balcony area is free of FAR area subject to conditions
Common Area:
lift, stairs, corridors, lobbies, utility areas (water tanks,
STP, electrical substation, IT rooms, solid waste
management areas )
*Basement service areas+ roof areas are free of FAR.
(add as % over Total Unit Area e.g. : 20% FAR area + 5%
free of FAR area)
FAR area consumed= unit area X unit numbers +
common area FAR
Important from approval perspective- cannot exceed allowable area
Total built up area= FAR area+ Area free of
FAR( balconies, basements, roof utilities+ PARKING
area)
Important from cost perspective
ORGANIZATION STRUCTURE1
Land / Business Development
Liaison/ Coordination
Planning
Design Management
QS/ Contracts
Procurement
Construction Management
Facility Management
ORGANIZATION STRUCTURE2
Legal
HR
Accounts
Funding
IT
Sales
CRM- Customer Relationship Management
Inventory management
Direct Sales
Channel Partners
