We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Are the Different Types of Property Market Analysis?

Helen Akers
Updated: May 16, 2024

A property market analysis can take a broad or narrow perspective, depending upon its intended audience. Some types of market analyses are done to address a specific question, such as whether a property investment will be financially rewarding. Real estate market studies may also focus on how property and land might be used. Depending upon the purpose of the market report, it may offer potential recommendations or simply state research findings.

One common type of property market analysis is a macro or broad assessment of environmental conditions. The value or market price of property is analyzed according to external factors, such as consumer income, the job market and buying trends. Even though this type of analysis tends to be broad in nature, it will usually focus on a single type of property. For example, a market study that involves a shopping center will focus exclusively on the unique trends that only affect commercial property.

Microeconomic research or marketability is a type of property market analysis that focuses on an individual segment's influence over price. Instead of examining a broad category of properties, a marketability study zeroes in on an individual property. For example, the pricing and potential buyers of a single piece of residential property will be speculated upon based on local conditions. The residence may be targeted at a specific segment of the market, such as first-time homebuyers, due to its size, neighborhood location, condition and features.

Some investors want to know if a particular property will help them achieve their financial goals. A feasibility or investment analysis is a type of property market analysis that attempts to predict a return on investment (ROI). For example, one investor might want to achieve a 15 percent return within five years.

A feasibility market analysis will attempt to take into account the proposed purchase price, future selling price and probable expenses. One of the biggest factors in a feasibility or investment analysis is risk. Potential risk factors include neighborhood decline, macroeconomic fluctuations, inability to locate suitable tenants, and natural disasters.

Another related type of property market analysis examines probable uses. In this type of analysis, research is conducted to determine how a piece of real estate might be best used. An example of a typical probable use analysis is how to develop vacant land. Investors may choose to build commercial or residential property on the land and seek the appropriate zoning permissions. Probable use analysis helps determine which choice would result in the highest return or financial reward from the investor's perspective.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Helen Akers
By Helen Akers
Helen Akers, a talented writer with a passion for making a difference, brings a unique perspective to her work. With a background in creative writing, she crafts compelling stories and content to inspire and challenge readers, showcasing her commitment to qualitative impact and service to others.
Discussion Comments
Helen Akers
Helen Akers
Helen Akers, a talented writer with a passion for making a difference, brings a unique perspective to her work. With a...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.