UNIVERSITY OF DAR ES SALAAM

COLLEGE OF ENGINEERING AND TECHNOLOGY (COET).

DEPARTMENT OF STRUCTURAL AND CONSTRUCTION ENGINEERING.

DEGREE PROGRAM: BACHELOR OF SCIENCE IN QUANTITY SURVEYING.

QS 368: REAL ESTATE MARKET ANALYSIS.

GROUP NO. 02.

PARTICIPANTS

S/N NAMES. REGISTRATION NUMBER.

01. KWEKASON, BELINDA A 2018-04-04246
02. MOHAMMED, ALLY 2018-04-04245
03. MWANKUGA, EMANUEL L 2018-04-11038
04. BISENDO, GODFREY C 2016-04-08664

QUESTION.

Discuss the concept of market disaggregation and the various data sources for market analysis with
references to Quantity Surveyors.
The concept of Market Disaggregation.

Market.

A place where goods and services are voluntary exchanged among different owners, it often
between buyers and sellers. It can be referred as a regular gathering of people for the purchase and
sale of provision and other commodities. It is the most primary of all economic and social
phenomena. In real estate market there are two types of market are considered, real estate space
market which is the market for the usage of real property and its often referred as the rental market
where tenants exchange rent with landlords for the right to use land and build space. And Real
estate asset Market refers to the mechanism for the voluntary exchange of ownership of real
property and often called the property market.

A real estate market analysis, also known as a comparative market analysis, is an analysis of
current market values of properties, comparable to a property you are looking to buy or sell. A real
estate market analysis should always be done, whether buying or selling a property, as it will help
to understand the current market, how much similar properties are worth, if it is an investment
property, how much you can charge for rent(Villegas, 2020).

Disaggregation.

Is the breaking down of observation, usually within common branch, into a more detailed level. It
involves differentiating or segmenting of a subject property from other properties based on their
differing product characteristics. Market disaggregation is a process involves separating different
users of services. A market that separates products into distinct groups.

Disaggregation, or differentiated marketing, involves segmenting a market into distinct

groups(Mack, 2019).The major advantage of disaggregation is it allows a company to selectively
target meaningfully different groups, thus increasing its potential sales(Mack, 2019).

Some of the major bases for market segmentation are as follows:

Geographic Segmentation: Geographic location is one of the simplest methods of segmenting the
market. People living in one region of the country have purchasing and consuming habit which
differs from those living in other regions.
Demographic Segmentation: Demographic variables such as age, occupation, education, sex and
income are commonly used for segmenting markets.

Psychographic Segmentation: Under this method consumers are classified into market segments
on the basis of their psychological make-up, i.e., personality, attitude and lifestyle. According to
attitude towards life, people may be classified as traditionalists, achievers, etc

Behavioristic Segmentation: In this method consumers are classified into market segments not the
basis of their knowledge, attitude and use of actual products or product attributes.

Volume Segmentation: Consumers are classified light, medium and heavy users of a product.

Product-space Segmentation: Here the buyers are asked to compare the existing brands according
to their perceived similarity and in relation to their ideal brands.

Benefit Segmentation: Consumer behaviour depends more on the benefit sought in product/service
than on demographic factors. Each market segment is identified by the major benefits it is seeking
(Chand, 2018).

• Market disaggregation on real estate

Includes classifying real estate markets according to different parameters. For instance locations,
type, customers and design. It allows real estate companies, investors and brokers to target specific
groups of buyers.

Why Market Disaggregation.

• Government decision. Revenue, acquisition, redevelopment etc.

Legislation is among the factor that can have sizable impact on property demand and prices. Tax
credits, deduction and subsidies are some of the ways the government can temporarily boost
demand for real estate for as long they are in place. Being aware of current government incentives
can help in determine changes in supply and demand and identify potentially false trends.

• Real estate customers. Choice residence, purchase, development, mobility etc.

Having different kind of customers makes the real estate to disaggregate market so as to serve all
kind of people in the community. Such due to the fact that many people with low income lacked
housing, the national Housing cooperation established a project of constructing the low income
houses so as to accommodate all community.

• Investors. Where and/or which to invest.

Investors act as the sources of market disaggregation as not all investors can invest on large
investment or small investment and thus according to the choice of which investors can invest and
real estate marketing involves investing, it gives a range of investors to have choice on which and
where to invest.

• Service provision. Infrastructure or product marketing promotions.

Provision of services within a given area act as the drive force of the market disaggregation,
because the nature of the real determines the requires of the area, such as there some areas low
rising building are preferred from high rising building due to the nature and services that are
provided from the area that’s leads to the outcome of a certain area being of a required real states.

Criteria of Market Disaggregation.

• Homogenous

For the market to be considered segmented, similar characteristics must be similar to mark the
market. Such as the National housing residence houses, they provide houses with similar
characteristics in the same or nearby location.

• Heterogeneous

Land as a real estate property is unique however can have similarities, land should have identifiable
differences with respect to their likely. Their differences determines to which group a real estate
belongs. It ensures effective grouping of real estate according to their characteristics.

• Substantial

The segment should be big enough to be relevant. Such as location as in the real estate of different
location may differ due to topography of the area, also Design type the nature of the design
displaces a great different between real estate. The substantial criteria explains that the segment
should be big enough to be recognized
 • Operational

The segmenting dimensions should be useful for identifying customers and deciding on marketing
mix variables e.g. price, finishes. Because properties are made with purpose such as building made
for the use of Air condition as the means of ventilation differs from those which use electric fans
for ventilation purpose.

• Accessibility

This is the degree to which the segments can be effectively reached and served. Congested areas
are not easily reached also availability of services in a given area thus determine nature of a given
environment and their differences from the others.

Importance of Market Disaggregation.

• It allows selectively targeting meaningfully different groups.

For instance the development of low income houses, also development of high rising buildings
and low buildings.

• It fulfils the very different needs of its customers.

It gives out what a person needs and want. The enables them

• Helps in identifying the right market for the product.

By identifying the right market for the product ensure successfulness of the product to the market
and avoids possible challenges that might occur to the product on the market.

Data sources used in real estate analysis.

The national statistics, state and municipal planning agencies and demographic data provide basic
information on population and households and their characteristics (including current-year
estimates and ten-year projections). The national census publishes many statistical data:

The municipal planning agencies provide data on building permit, and on recent construction
information for individual municipalities. However, the building permit statistics do not indicate
whether multifamily units are intended for sale or for rent. No information on unit mix, size, or
pricing is provided.
The housing price statistics from Tanzania Building Agency (TBA), National Housing
Cooperation (NHC) tabulates housing starts and unit completions in the country. This provide
benchmarks for gauging absorption rates in new buildings.

Demographic and psychographic data from National Bureau of Statistics (NBS) used to provide
vital background information on a trade area’s population, households, household characteristics,
lifestyles, housing tenure, and income. The market analysts will need to translate these numbers
into purchasing power and estimates of supportable sales, to use local population and household
estimates and projections, applying them to estimates of per household spending from other
sources.

The current economic base and historic employment and unemployment rates from National
Bureau of Statistics (NBS), Ministry of Works, and the national census issue country-level reports
that include the number of employees and business establishments. These data can serve as proxies
for identifying the type of tenants in a country and their sizes. Information on top employers is
often compiled by chambers of commerce and by the local business press; both are also sources of
information on planned business expansions and closings.

Data on net absorption, rents, and occupancy can be obtained from Estate Agents, for individual
submarkets, and on a building-by-building basis, either from local consultants or from online data
sources such as Google.

Public sector economic development agencies and utility companies tend to be more active in
providing industrial market data than office information. They often maintain data on available
sites and can be useful sources for information on labor force availability and skills, training
programs, and financial incentives to spur development or reuse of vacant buildings.

Interviews with local bank economists, chambers of commerce, and public sector economic
development agencies help the analyst identify office and industrial tenants who have indicated
that they plan to expand or leave the area. Conversations with office brokers can provide insight
into the types of firms that are locating in particular submarkets, and what they are looking for:
size of spaces, age of buildings, amenities, and features. Lease announcements in the real estate
press can also be valuable in pinpointing the types of locations that are attractive to different types
of businesses.
The trends in local markets can be reviewed using data from local chambers of commerce, tourism
and economic development agencies and various trade associations. The Private consulting firms
specializing in travel market analysis and tourism studies are also useful as sources for
industrywide trends. Information on new supply can be obtained from local convention and visitors
bureaus or planning and economic development agencies.

Sources of Supply Information and Their Limitations.

Numerous information sources are available to help market analysts get started in examining the
supply side. Some cover area or submarket trends and provide little information on individual
properties, while others focus on property-level information.

Brokerage Reports.

Summaries of current and historic market conditions (inventory, rents, occupancy rates,
absorption) are available for many larger areas and their submarkets. Global brokerage and
investment advisory firms such as Cushman & Wakefield,CB Richard Ellis, Colliers International,
Grubb & Ellis, Marcus & Millichap, and others provide these data for the biggest markets in
different countries.

Global brokerage firms have sizable research staffs that are responsible for monitoring inventory
and performance trends. Information is updated quarterly, and some firms provide year-end
summaries. Brokerages use this information as part of their marketing packages when representing
properties offered for sale. They are able to combine area trend data with information on individual
comparable buildings. Some brokerages cover only office and industrial properties, while others
add retail or apartment data.

Consultants, Associations, and Trade Media.

Organizations that represent real estate professionals can be useful sources of information on
supply trends at the national level. The organizations representing property niches ranging from
manufactured housing to timeshare resorts. Some trade associations conduct surveys and sponsor
research efforts that help market analysts better understand consumer and user preferences.
Directories, and Lists.

Directories of apartment complexes, office buildings, or industrial parks (published in magazine

form and usually available online) provide an inexpensive way to get started, providing basic
information on individual buildings. Economic development agencies often have lists of available
blocks of space in privately owned commercial buildings. Agencies charged with promoting
tourism or booking conventions and meetings will have lists of hotels in their jurisdiction and
descriptions of their facilities, as well as information on publicly operated convention venues.
These sources list the names, phone numbers, and locations of apartment complexes and may
provide information on the types of units offered and amenities featured. Although listings can
provide a road map for the market analyst, additional information must be obtained through field
visits or telephone interviews.

Census Bureau.

As indicated previously, the census counts form the basis for most demographic estimates and
projections. Because conditions can change dramatically between census years, market analysts
must use more current demographic estimates. The information generate a sample of households
regarding household income, educational attainment, and other social and economic
characteristics.

Conclusion.

Although market disaggregation has benefits, it can be costly. To divide consumers into
meaningful groups, a company needs data, such as what customer surveys and focus groups can
offer. Once a company learns, for example, the various buying preferences of its target market,
then it can categorize buyers into different segments. But such market research can be expensive,
especially if a company lacks expertise and needs to hire a market research firm
REFERENCES

Chand, S. (2018).Market Segmentation: 7 Bases for Market Segmentation | Marketing

Management. (Retrieved April 7, 2022, from
https://www.yourarticlelibrary.com/marketing/marketing-management/market-segmentation-7-
bases-for-market-segmentation-marketing-management/27959)

Mack, S. (2019).What Is Marketing Disaggregation?.(Retrieved April 6, 2022, from

https://yourbusiness.azcentral.com/marketing-disaggregation-25465.html)

Villegas, F. (2020). Real estate market analysis: What it is & How to do it. (Retrieved April 7,
2022, from https://www.questionpro.com/blog/real-estate-market-analysis/amp/ )