Use of GIS techniques in Real Estate business analyses.

Abstract

This project implements a systematic approach by applying potential customer data and spatial marketing techniques to identify a suitable location for a new retail outlet. GIS technology is used as a tool for analyzing the retail trade areas. This technology removes site selection blinders by identifying and illustrating the crucial factors for site selection within a geographic framework. GIS techniques are used to provide a basis for understanding, visualizing and quantifying the extent and characteristics of known or approximated trade areas. The analyses procedure used in this project takes into account household incomes and demographic characteristics based on: • Drive time analyses • Radial (ring) studies • Gravity models Map calculations were performed using vector data where household income and demographic characteristics were extracted. The extracted demographic characteristics for proposed sites were then assigned to a rank score based on a predefined rank score interval. The rank scores for different demographic characteristics were then combined to form a composite rank score. The site with the highest composite rank score was chosen as the best site for a new retail outlet. Based on the results of my case study, site number two was ranked as the most suitable site for a new supermarket.