Liase Foras Independent, non-brokerage realty research company
Liase Foras Independent, non-brokerage realty research company
Independent, non-brokerage
realty research company
highest & Best Use Analysis

Every structure belongs to its location and time. The prognosis analyses the plot/location’s characteristics with prevailing market dynamics and scan into various options to find out the one which gives the highest/ maximum development realisation.

highest Best Use Analysis

Step-1: Subject-site assessment

Primary visits and surveys are made to and around the subject-site to get a feel of the area.

  • Drawing a catchment of the subject-site. It is generally 5 km but depending on the site and development mix the catchment area varies
  • Field survey of the catchment
  • Regional profile of the catchment
  • Land use distribution in the catchment
  • Infrastructure and demographic/population profile within the catchment
  • Connectivity and accessibility
  • Environment and topography as well as land gradient within the catchment.

Though analysis of catchment and influencing competition is imperative for ensuring the success of your project.

Landuse Analysis
Geographical Context and Urban Development
Topographic Analysis
Impact of Infrastructure

Step-2: Assessment of Prevailing Market Dynamics

The second step involves detailed analysis of performance of the products within the catchment of the subject-site. This involves deeply analysing the market inventory, sales, price, volumes and offtake velocity of the market as a whole, as well as at competition level. This analysis would cover all the segments individually such as

  • Residential
  • Commercial
  • Hospitality
  • Retail
  • and other unconventional options.

Using our quarterly updated data of the market, we assess the past trends and through the leading indicators, the future course of the market is also taken into consideration.

The primary supply data is collected by field surveys.

Market Dynamics
Building use pattern
Cost Range Derivation
Phasewise Launch

Step-3: Ideal Development Mix, Product Mix and Fair Price Assessment

Under this process we analyse the performing and risky products. We also analyse the price and velocity (offtake percentage), taking in to consideration the following factors:

  • Demand drivers in the catchment for residential/commercial/hospitality options
  • The best mix, if undertaking more than one option
  • The most popular product in the catchment
  • The best ticket size for each kind of product
  • Gradation and Mapping of the competitive projects on the basis of their value offerings and price.

This phase is extremely crucial in the overall success of a project as it determines the possible options of development mix. Depending upon the available FAR/FSI, suggestions are made to determine the options of development mix.

Development Mix
Phasewise Plan

Step-4: Financial Viability

A detailed cashflow analysis is carried out to ascertain the best performing option and also to determine the timeline and phases of the development. A detailed financial-economic model is employed to show scenarios with different outright and lease rates, etc. Detailed calculations shall include:

  • Total Cost & Revenue
  • Monthly Cashflow
  • Peak Negative Cashflow
  • Equity & Debt Component
  • Return on Investment
  • Return on Equity
  • NPV
  • IRR.

Sensitivity analysis to check the viability of the best option at various outright rates is given importance. And timeline of the suggested development mix is made.

Revenue/Cash flow
Financial Viability

Sample Reports

Sample best use study and design brief for a plot in Mumbai suburbs Sample product assessment and urban design guidelines study Sample best use study in a tier II city Sample best use study for a plot located in the outskirts of the city
Offering a structured approach to prognosis
Subject Site Assessment
Subject Site Assessment

Physical survey of catchment, Land use analysis, Infrastructure (Present & Future), Connectivity, Demographic profile and economic density

Market Dynamics
Market Dynamics

Analysing the micro/road level trends of supply, demand, value of sales and other metrics across development profiles and product ranges in the catchment.

Price Determination
Price Determination

Prices across the products are determined on the basis of scientific theories. The prices so determined will provide optimum velocity to a project.

Determination of Development/Product Mix
Determination of Development/Product Mix

Development Mix is determined on the basis of present and expected demand in the catchment, based on our Magnet Theory.

Financial Analysis
Financial Analysis

Product Mix so determined is financially tested to analyse the impact of RoE, IRR, equity involved . The analysis will also involve Probability of Achievement of assumptions.