Economic studies and investment | The success of construction projects depends on several factors at the level of micro, macro and urban economy. In this regard, the following factors have a significant impact on the structure and methods of financing and investing in civil and construction projects, which has made the revision and evolution of these methods inevitable and necessary.

• Changes in economic indicators such as inflation, liquidity volume, inflationary stagnation, etc. (influential microeconomic indicators)
• Changing investment and purchase habits, people’s purchasing power, etc. (a collection of government decisions in domestic and foreign policies)
• Compilation of the budget, tax laws and monetary and financial policies

Relying on the experience and knowledge of managers and experts of economic studies of Atlas Toos construction projects as a specialized working group, this company is your strategic partner in the entire investment life cycle.
In this regard, the specialized department of financing and investment in construction and construction of Atlas Toos provides consulting and monitoring services for the implementation of new and distinctive methods of financing and investment in civil and construction projects.

Economic studies and investment

Economic studies of construction projects are a smart way to increase the assets of investors who are looking to add real estate to their assets. Therefore, a real estate investment advisor may be selected to help manage the process.In this role, the investment advisor performs economic analysis to ensure that the investment is a profitable financial decision for the buyer.

This may begin with a price, supply and demand analysis of the property type or location. The consultant then evaluates the marketability of the property to determine the profit in current market conditions. The results of this research are used to estimate the risk for the buyer and the potential return on investment. The advisor may also check the value of the property.

The success of civil and construction projects depends on several factors at the level of micro, macro and urban economy. In this regard, the following has a significant impact on the structure and methods of financing and investing in civil and construction projects, which has made the revision and transformation of these methods inevitable and necessary.Atlas Toos construction economic studies consultants are present with employers and investors for the development of real estate from the beginning to the end. These services include researching potential projects for development, conducting feasibility reports and performing competitive analyses.

Our abilities in the field of economic studies and investment

Explanatory plan of the construction industry

• Market Studies
• Technical Studies
• Economic Studies

Market Studies

• Knowing the project environment
• Studying effective applications and projects
• Investigating developments in the real estate trading market
• Summary of market studies and suggestions of users

  Knowing the project environment

• Knowing the location of the project
• Examining the demographic indicators of the project area
• Investigating the infrastructure and amenities in the project area
• Investigating the transportation and traffic situation in the project area
• Investigating project accessibility through major arteries and public transportation including metro and BRT

Studying effective uses and projects

• Examining the specifications, features, and facilities of prominent and competing projects and uses in the project area
• Market research and review of pricing policies
• Checking the price of similar uses in the region
• Investigating the location of key projects in relation to the project area
• Compilation of the price map of the region

Investigating developments in the real estate trading market

• Summary of market studies and suggestions of users
• Analysis of strengths and weaknesses, and opportunities and threats (SWOT) of the project
• Estimation of market segmentation and target market of the project
• Estimation of project supply and demand

Technical studies

• Project review
• Developing a sales plan
• Estimating project costs

Project review

• Checking the location of the project
• Level table and project levels
• Pictures of the project area
• Floor plan of the project

Developing a sales plan

• Estimation of sales strategy
• Estimation of the sale price of the project by class
• Determining the payment system

Estimating project costs

• Project land cost
• The cost of municipal permits, consultation and supervision
• Project construction costs
• Project financial costs
• The cost of equipping the sales office

Economic Studies

• An initial estimate of the macroeconomics of the project without considering the time value of money
• Estimation of the initial net square footage of different uses of the project (according to the square footage determined in the first part or the net square footage of architectural plans)
• Estimation of the initial gross area of the project
• Estimating the length of the project construction period
• Estimating project construction costs
• Estimated project financing costs (if any)
• Estimation of land price
• Estimating the sales revenue of the net square footage of different uses of the project according to the sales plan
• Estimating the total sales revenue of the project (according to the sales plan)
• Estimating the costs of studies, advertising and sales
• Estimating the total costs of the project (total costs of land, taxes, financing, construction, etc.)
• Estimating the net profit of the project
• Estimating the net profit of the project per one square meter of construction
• Estimating the rate of return on investment (ROR) of the project

Project cash flow output

• Cash flow of land price (in case of payment in installments)
• Cash flow of financing costs (if any)
• Cash flow of construction fees (in case of payment in installments)
• Balanced cash flow of construction costs (taking into account the inflation of construction costs)
• Total cash flow of project costs (project cash flow)
• Project cash flow estimation

Project cash flow (Cash In Flow)

• Supply percentages and sales plans by different uses of the project (including price increase periods)
• Cash flow of sales revenues by different uses of the project (according to the sales plan of each user)
• The system of receiving sales installments separately for each user (buyer payment system including advance payment percentages, installments, unit delivery, ownership transfer and document registration)
• Total project revenue cash flow (project cash flow)

Calculation of economic indicators of the project

• Net present value of project revenues
• Net present value of project costs
• Net present value (NPV) of the project
• The annual internal rate of return (IRR) of the project
• PI project profitability index (B/C ratio of benefits to expenses)
• Annual adjusted internal rate of return (MIRR) of the project
• The amount of initial capital that is required until the end of the work without stopping
• Calculating the break-even point of the project (Break-Even Analysis)
• Normal Payback Period (NPP)
• Dynamic Payback Period (DPP)

Analysis of economic risks of the project

• Launching the risk of expected price reduction
• Calculating the risk of price increases estimated for costs
• Sensitivity analysis of inflation risk and its effect on costs

Cost and methods of financing

• Development of investment and partnership models
• Introducing optimal models of investment and participation in the project