Potential Use Study

In real estate business development, one path to success lies in anticipating opportunities before they manifest themselves. This is where potential use analysis comes in, an innovative approach that goes beyond conventional market research.

Potential use studies are fundamental to real estate development by providing a strategic view of the opportunities and challenges in a given area, these studies allow real estate developers to obtain the tools necessary to anticipate and adapt to the emerging needs of an area, with a greater return on investment.

Beginning with an in-depth analysis of the sociodemographic characteristics of a specific area, this method offers a unique perspective by merging market analysis with a detailed understanding of local particularities. In this article, we explore in depth what a potential use study entails, how this approach can unlock latent opportunities and provide strategic insight for decision-making in project development. 

Crucial Steps for a Successful Study

The study analyzes various components ranging from geographic characteristics to the mobility of the area, sociodemographic aspects, local economic trends, current regulations, and other relevant factors. These elements are intertwined and a detailed understanding of these points is of significant importance, as their results not only influence the projection of the project, but also indicate the direction it should take for a successful execution.

Detailed Analysis of the Property and its Surroundings

A fundamental part of this study involves not only understanding the internal characteristics of the property, but also immersing oneself in the surrounding context. Understanding the particulars of the environment becomes essential to making informed decisions, as the property does not operate in isolation.

It is strongly linked to what is happening around it and is directly affected by present and future events in its environment. This holistic approach provides us with a complete picture, allowing us to anticipate potential external impacts, reduce risk and take strategic action to maximize the potential of the property in its broader context.

Market Demand Assessment

A potential use study not only asks what is needed in the area, but also explores untapped opportunities and understands the specific desires of the area, with the possibility of absorbing the unmet market. Rather than just satisfying present demand, the potential use study seeks to anticipate and
create solutions for future needs, taking a strategic and long-term growth-oriented approach.

Case Studies: Coliving Interlomas

Coliving Interlomas, located in the east of the State of Mexico, exemplifies the effectiveness of conducting potential use studies. This project was developed near one of the most prominent universities in the region, anticipating a high demand for student housing. 

With a population composed mainly of seniors, where the demand translates into large housing, there is a counterpart of floating population, which is composed of university students, who demand another type of housing, which is not being offered, which means an important market opportunity. 

The traditional offer consists of adapted housing, designed for the family nucleus, with spaces such as TV rooms, kitchens that make coexistence difficult, and even rooms with study areas, which do not meet the specific needs of students, who are looking for interaction with other residents.

The innovative proposal of Coliving Interlomas challenges the conventional norm, adapting to new ways of living that arise from a thorough analysis of student needs. Spaces for leisure, recreation, contemplation and rest are not simply physical structures, but the tangible result of a thorough understanding of student demands and expectations.

Frequently asked questions:

How long does it take to perform a study?

The duration can vary, but the average analysis takes about 6-7 weeks.

What are the main data sources used?

Sources include demographic data, government sources, legal records, market analysis, field visits, interviews and analogous cases. 

Is it necessary to hire a professional to conduct the study?

While it is possible to conduct preliminary research, the expertise of a professional ensures a more accurate and complete assessment.

 

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