When beginning any real estate development, finding a suitable land parcel for construction is very critical. However, once you have shortlisted a few land parcels that suit your requirements, how do you decide on which land parcel to go with? The answer is simple whichever land parcel would give you the highest return, but arriving at this conclusion is a long and tiring process, involves multiple stakeholders – architects, financial analysts, and needs to be completed in a limited time frame.
Step 1: Permissible BUA
Analyzing the financial returns from a particular land parcel is a three-step process. Step 1 is to arrive at the maximum permissible built-up areas (BUA) on the land parcel considering all the regulatory constraints applicable – road widening, open area requirements, base and premium FSI or FAR available, etc.
Step 2: Possible BUA
Step 2 is to determine the maximum possible BUA on the land parcel. This is a complicated but crucial step as it optimizes possible BUA considering three factors – regulatory constraints like site set-back, height constraints, etc., design/ site constraints like non-developable areas, prime view zones, etc., and finally the business constraints that define the end use mix of the land parcel. Step 2 is primarily undertaken by architects, in-house or 3rd party with specific inputs on the business constraints from developers’ investment/ business team. Multiple optimal design options are prepared in Step 2 that maximum the possible BUA.
Step 3: Feasible/ Optimal BUA
Finally Step 3 is to determine the feasible/ optimal BUA on the land parcel by analyzing all the optimal solutions generated in Step 2 using the financial metrics and determining the one that gives the most returns. While local architects can quickly navigate through the regulatory constraints and can help the developers in determining the maximum permissible BUA (Step 1) within a day’s time that too for minimal or no cost, optimizing between regulatory, design, and business constraints to arrive at the maximum possible BUA (Step 2) remains a significant hurdle both in terms of time as well as cost. This iterative process requires close coordination among developers, architects, and financial analysts, often prolonging the feasibility analysis phase.
However, this is not all, while developers face the daunting task of evaluating multiple land parcels using the above mentioned 3-step process, architects have to juggle with ever-evolving project requirements through the analysis process on each of these land parcels. This iterative process often takes weeks and sometimes even months, causing frustration and delays. However, it can be effectively solved by leveraging AI
Archonet’s AI-powered Real Estate Feasibility
Checkout Archonet’s AI-powered platform for real estate feasibility and design, a groundbreaking solution to revolutionize the real estate industry (Click here for the demo). By leveraging artificial intelligence, our innovative platform would streamline the feasibility analysis process -specifically the Step 2 mentioned above, transforming weeks of deliberation into a matter of hours. We are building proprietary advanced algorithms in-house to navigate through the regulatory complexities while optimizing design layouts to meet ever-changing business needs.
One of the most compelling features of our platform is its ability to facilitate real-time collaboration among different stakeholders. Developers, architects, and financial analysts can collaborate seamlessly in virtual environments, ensuring alignment and efficiency at every step of the development process. For instance, the designer can feed all the necessary regulatory and design constraints on the platform and save the version, and the developer can use the saved version and dynamically change the project mix – for example the proportion of residential to commercial or within residential say 2BHKs vs 3BHKs, based on any new market signal. Thus, with just a click of a button, teams can share insights, iterate on designs, and make decisions in real-time, a stark departure from the fragmented communication channels of the past.
Moreover, our platforms offer architects a powerful tool for generating optimal layout options in the initial stages of design. By leveraging AI-generated designs, architects can explore a myriad of possibilities within a matter of minutes, select specific options that align with their design ideology or serve as benchmarks for efficiency comparison specifically on the developer’s side. With AI-generated designs boasting an average efficiency improvement of 5-10%, architects can confidently explore new frontiers of creativity and innovation.
Beyond Just Feasibility
But the impact of our platform extends beyond feasibility analysis and design optimization, it is poised to positively impact every facet of the real estate development lifecycle. From market analysis and investment strategies to risk assessment and customer relationship management, our platform would empower all the stakeholders in the real estate space to unlock new opportunities and drive success in today’s dynamic real estate market.
Archonet represents a transformative force in real estate development, offering developers and architects unparalleled capabilities to navigate complexity and drive success. By streamlining feasibility analysis and design optimization, it empowers stakeholders to unlock new opportunities, enhance collaboration, and ultimately, shape the future of real estate. As the industry continues to evolve, Archonet stands as a testament to the power of innovation, paving the way for a future where possibility knows no bounds.
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