Client: Residential Developer

Country of Origin: Germany 

The Challenge

A Residential Developer engaged Datanalytika to assist in evaluating market expansion opportunities for a large construction project in the area of Akrotiri, Chania, Crete. The Developer deals in particular with the creation of luxury, high-quality residences,featuring exceptional aesthetic design, bespoke detailing, and state of the art amenities.

After seeing success in their initial investment in Apokoronas but growing frustrated with high land prices and competition for development sites, they requested Datanalytika’s assistance in identifying and determining an optimal and attractive area into which they may expand their existing portfolio.

In this study, Datanalytika was tasked with creating a market evaluation framework to assess properties that met their criteria, measure the return of investment opportunities and evaluate the expansion potential.

Solution

Datanalytika gathered data and information and performed an initial analysis of approximately 30 properties that met the specified budget and size criteria and created a prioritization framework of these properties to share with the client.

Together, three properties were chosen as finalists, and a more detailed analysis was performed to compare these properties with similar properties in Apokoronas and Agia Marina. These particular properties were chosen based on the analysis of data points seen to be strategic to the client’s business strategy such as distance to the beach, availability of local amenities, distance to the city of Chania, the percent growth in high-income households, and net migration, among many others.

A more unique and complicated task was that this client was seeking land plots close to existing villas and other high-end residential properties, and we utilized some complicated datasets including historic prices and prognostic data to estimate this at a market level.

The combination of these data points allowed Datanalytika to create numerous scenarios assigning different weights to construction potential, demographic and real estate factors in order to create a reliable priority ranking method of the three proposed properties based on their overall market potential for the Residential Developer.

Impact

The Residential Developer is now equipped with reliable and pragmatic research-backed data should they decide to expand into Akrotiri area, as they actively evaluate their business strategy.