Sales Tech blog

From Idea to Construction: Crafting the Concept of a Residential Complex

Exploring the inner workings of a development company, from conceptualizing a new residential complex to its operational launch and handover to the management company. We kick off a series of publications on this theme.

Leonid Ovchinnikov, Founder & CMO of SalesTech, shared insights with on the development of the residential complex concept, emphasizing that development truly begins with conceptualization.

While some colleagues may argue that a development project starts with selecting a land plot for construction, and they have a point, the distinctive approach of SalesTech and Enhance Development, our collaborative partner, lies in considering concept development as a tool for choosing and evaluating the land plot for construction.

This approach enables us to assess the potential of a land plot, considering projected financial indicators: sales forecasts, price levels, required investment volumes, and profits.

The research method encompasses several key stages:

Land Plot Analysis

The initial step involves a detailed analysis of the designated construction site. We scrutinize its location, size, geometry, and topography, studying local features, the natural landscape, and exploring infrastructure, residential structures in the area, and transportation accessibility.

The aim is to comprehend how our project can integrate into the existing environment, its potential for development, and identifying the location's strengths and weaknesses. Additionally, using targeted advertising tools, we assess potential demand for new apartments in this location.

Competitor Analysis and Pricing Strategy

Moving forward, we delve into the competitive landscape and real estate pricing in the region. Studying competitors' strategies, pricing, and value characteristics, we formulate our competitive advantages, determine an optimal pricing strategy for our apartments, allowing us to position our project effectively in the market. Understanding price dynamics and trends influencing future prices is crucial.

At this stage, we establish pricing features for the future residential complex, including price range, installment terms, discount policies, and a schedule for price increments during construction. These data are essential for constructing the project's financial model.

Positioning of the Residential Complex

We examine how potential competitors position their residential complexes, their class, and the value characteristics emphasized in advertising campaigns. Subsequently, we conduct a creative session to create or find a Unique Selling Proposition (USP) that forms the basis of a unique positioning. We test all these elements on real clients at our sales centers.

Following the analysis, we create a positioning matrix for residential complexes in the region. This allows us to propose a positioning strategy that will enable the future complex to compete successfully.

Target Audience Research and Customer Segments

We utilize the Jobs-to-be-done model to segment potential buyers, analyzing their needs and preferences. This helps us identify key segments of our audience and develop proposals that best meet their demands.

This approach allows us to define key client segments, identify their goals and motives for real estate purchase, factors influencing their choices, and propose value characteristics in the project that align with the needs and expectations of future apartment buyers and complex residents.

In conclusion, the formulated concept provides recommendations for the architecture, content, and infrastructure of the complex, apartment layout, engineering equipment, and more. These proposals will serve as the basis for the Technical Assignment for designers.

Additionally, based on the gathered data, we develop a financial model for the project, allowing us to determine key financial indicators and forecasted construction results for the residential complex on the plot.

At this stage, the developed concept allows us to evaluate the plot for development as a developer's project. Future project participants can make more informed management decisions based on the forecasted data.

We will continue refining the concept in the future. Designers will develop the architectural concept, a brand for the future residential complex will be created, and a marketing and sales strategy will be devised. These, however, are topics for upcoming publications.