Application of family life cycle concept in determining potential segment for housing projects

Abstract

This paper highlights the importance and demonstrates the application of a segmentation strategy, based on the concept of the family life cycle, in real estate market analysis. Each stage in the family life cycle has its particular preferences regarding locational attributes. Neighbourhood characteristics can, therefore, reveal which segments should be the target of marketing campaigns. In order to increase the chances of a building successfully meeting the user’s requirements and therefore of achieving quick sales, its spatial conception, facilities and leisure attributes must be orientated to satisfy these different segments. To confirm this hypothesis and to exemplify the method presented, two high rise apartment buildings, in the city of Florianópolis, Brazil, are evaluated. The compatibility of their architectural attributes and the identified needs of respective potential marketing segments (according to the study of the locations) is verified. The results of this analysis, based on how fast the apartments were sold, confirm the effectiveness of the method.