‘Location, location, location’ is the popular catchphrase of those who believe you can build and sell almost anything if the plot is in the right place. However, these days we believe that developers need to be far more focused on what they’re building and who they’re hoping to sell it to rather than just the location. In short, there needs to be a much greater emphasis on the sector they’re building in.
The developers bringing the most attractive proposals at the moment demonstrate a very high level of local knowledge and expertise at matching the right product with the right buyers in the right locations. In today’s market, where cash and the availability of mortgages are more restricted the most important thing is to establish not just who wants a property but who can afford it.
For example, there may well be a shortage of new flats in a particular location but if incomes in that area do not allow the first time buyers being targeted to fund a deposit then restrictive LTVs on mortgages will hamper sales. The real skill is to establish at the outset of the project which type of purchasers have the desire and the means to purchase and to design developments accordingly.