This document provides insights into residential and commercial real estate. For residential real estate, it notes that investment decisions are often emotional rather than purely rational, and influenced by familiarity with a place. Investors typically look within 10-20 km of familiar areas like their current home. Luxury real estate is usually for self-use initially, with investment and yields coming after. Commercial real estate insights indicate that malls are viewed more as entertainment than just shopping destinations, and value-added services can provide revenue beyond store rents. The motivations for home buying depend on life stage, with different priorities for families with young kids versus those with older or adult children.
6. KEY INSIGHT
Investment radius not more than 10 km-20 km of
familiarity – in same city!
If investing outside current city, it would be a familiar city and not a city
where buyer has no family, friends or familiarity
7. LUXURY REAL ESTATE
Key Investment Payoff – Appreciation
Key Investment Criteria – Self Use
value of current house cannot be less than the one being considered for
purchase, if it is then self use becomes key criteria and not investment
8. LUXURY REAL ESTATE
Luxury real estate first use is always self use
Investment and yield come after self consumption
10. WHICH MOTIVATION IS STRONGER
DEPENDS ON YOUR LIFE-STAGE
Budget
LocationSize
Home buying
behavior
cycle
FADS FOLKS
FINKS
THE KEY’S PROPRIETARY MODEL – KEY HOME BUYING LIFESTAGE CYCLESM
- FADS, FOLKS AND FINKS
11. WHICH MOTIVATION IS STRONGER
DEPENDS ON YOUR LIFE-STAGE
Budget
LocationSize
Home buying
behavior
cycle
FADS FOLKS
FINKS
FINKS – Families with no
kids, or with infants/toddlers
(pre school) – will never
stretch their budget as that
is limited and finite
FOLKS – Families with older school going kids – They shall
not budge from their chosen location as the location is close
to the kids’ school – hence this segment shall never
compromise on the location
FADS – Families with adult
kids – college going or
working (unmarried) –
cannot compromise on the
size of the apartment – as
their requirement is of more
number of rooms
19. Category Clutter
Destination
Potential
Hi
Lo
HiLo
Lifestyle
Westside
Chroma
Footwear – specialist chain
Crossword
Landmark
Luxury Spa
Gym
Club
High end liquor and wine shop
Home Décor and furniture
Modern Retail Departmental Store
Big Bazaar
Shoprite
International Labels – entry level
A/X, Gap, Zara
Food Court of Specialty Restaurants
Indian Designer
Ritu Kumar/Ensemble
Apple – I-store – gadget mall
Car Showroom
BEFORE RESEARCH
Sans consumer feedback – IN YELLOW ABOVE
Assumptions before research
20. Frequency
Excitement
Hi
Lo
HiLo
Cosmetics
Bags and Purses
Home Decor
Footwear
Jewelry
Western Wear
Furnishing
Casual Indian Wear
Electronics
Books and Stationery
Gifts
Perfumes
Children’s Clothes
Grocery
EXCITEMENT BAROMETER
RELEVANT CATEGORIES
– AFTER RESEARCH