Do you know your target group?
October 8, 2021
Truly knowing your target group is perhaps the most important part of being a successful residential property developer. Ideally, the target group will be kept in mind throughout the entire project, from the acquisition of the land until the sales process kicks off. In this article, we discuss the relevance of the target group through the journey of a newbuild development project.
Who are you designing your project for?
Already when acquiring new land and forming the living concept of your new development project you must consider the target group. In order to reach the sales potential and the desired return on investment for your development, it is vital to consider who would actually purchase your properties. Not fully understanding the needs of your target group when planning the construction could result in poor sales for the project, as you can risk missing out on important features that are vital to the potential homebuyers in the purchase of a new home.
The approach to a new project should always include consideration of the area you are developing in and who would live there. Is the area close to the city center or more remote? The location should give you a fundamental idea of who your target group is. A residential development close to a city center could for example be attractive to young people who do not own a car and would like to live close to their workplace and the many cultural offerings of a city. This type of location could also fit older people who prefer the central areas as it typically can offer better public transportation and other conveniences. On the other hand, more rural areas or outskirts of cities could draw families with children, as such areas often can provide more space. These people might be willing to live with more distance to certain amenities and their workplace, but prefer living within close proximity to kindergartens or schools.
Get a deeper understanding
To prepare in the best way possible, it might be relevant to conduct a survey or find another way to get in touch with people already living in the area as well as people willing to move there to get a deeper understanding of who they are and what they need. The information one would want to search for is information about their life situations as well as specific needs for a new home, such as preferred number of bedrooms, size of living unit, parking space preferences, and other facilities that help shape a residential development. Also, knowing how much the relevant people are willing to pay for a new home is helpful to set the right pricing strategy.
What does the market look like?
Analyzing planned and ongoing expansion in the area is vital to make the most of your development project. For example, if the area will get new facilities such as cultural offerings or improved public transportation in the near future, this would be highly relevant to consider in the target group decision. Furthermore, it is of importance to research other residential development projects in the area, if there are any, to determine what a new development potentially could offer that is unique compared to other developments.
Reach the relevant people through a digital strategy
When the target group(s) for the project has been identified and you have found your unique selling point, you have done a large part of the work. Then, the next phase begins, which is the strategic planning of how to reach the relevant people and market the properties in the most efficient way possible. You already have the foundation in place, which explains who the desired people are, but do you have the right tools to reach your target audience?
Creating a digital marketing strategy is a good step in the right direction. In today's digital world, most people have some kind of digital presence. The key is to reach the potential homebuyers at the right time and place with the right message. You can read more about creating a digital strategy for your newbuild development project here.