Micromarket growth for a real estate tech player

Context

Company: Co-living accommodations, real estate technology

Problem statement: 

A large co-living company wanted to expand and grow faster. They required support over long-term period to help identify the right location and right type of assets to establish for market expansion. The challenge was the insufficient data and insights to undertake the decisions that involve large capital deployment. Creating supply in new markets is a daunting task requiring significant investment of knowledge building, network building, offline presence, market insights, and strategy formulation for the micromarket. They wanted a consulting partner to bridge the gap, identify the right location and design the right assets so that they can focus on execution. Praxis worked with the co-living player for over 4 months to help scale up their supply across 60+ micromarkets across 10 cities. We worked closely with their on-ground supply acquisition team to create bandwidth and speed through market insights and strategic inputs

Our Approach

• Assessed the demand for co-living in each micromarket and carried out a deep dive into residents’ key selection criteria and pain points
• Analyzed the nature of supply of accommodation in each micromarket by understanding characteristics related to the type of property, offerings, pricing, and terms of contract
• Studied the economics of supply across competition players
• Understood demand and supply trends, mapped the gap, and designed the supply for the client’s market entry

• We helped the client to identify the right clusters to expand into a city by conducting a detailed economic analysis and enabled them to prioritize entry into the micromarkets with the highest potential
• We developed an ideal product type along with a price range for the product for a successful market entry
• Our client launched 40+ micromarkets in a 3-6 month period successfully, thereby consolidating leadership position in the market and gaining significant market share

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