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All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
1
LLUUXXUURRYY EESSTTAATTEESS FFOOCCUUSS GGRROOUUPP
PPRREEPPAARREEDD && CCOONNDDUUCCTTEEDD BBYY
AADDAAMM GGRREEEENNFFAADDEERR
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
2
Introduction
Cittadella, a luxury residential community in Mayagüez, is the process of
finalizing its strategic sales and marketing plan. As part of its plan, it undertook
three (3) separate focus group studies to help determine market acceptance of
its site and unit designs. Two separate site plans were presented and four
different home models. In addition, the project presented the main entrance and
the recreational facilities (see addendum).
The Cittadella focus group had several specific goals:
1) Determine if the “Hacienda” look and feel was well received by future buyers
2) Determine if the classical courtyard and balcony concept was deemed
valuable
3) Determine what key finishings and amenities were most desired by a luxury
residential buyer
4) Determine what lot sizes were deemed most luxurious
5) Determine what site plan configuration would be best received
Scope Of Market Study: The scope of this study is to identify current market trends and consumer
tendencies.
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Adam Greenfader Real Estate Broker
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Key Design Criteria: The key design criteria in this study are centered on specific architectural and
engineering elements that provide the greatest amount of value to the end user. As all
design elements have corresponding cost trade offs, we will try to prioritize said design
elements. The specific design elements fall into three main categories:
Community & site design
Exterior building design
Interior unit design & layout
It should be noted that AXYON participated actively in the design of the units with the
architectural firm of Carlos Lopez Atienza and Architect Jesus Trias. This participation
however had no material affect on the results of the focus group.
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Adam Greenfader Real Estate Broker
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Focus Group Research Sources This report and its conlclusions were compiled from the below noted sources:
1. Focus Group Questionnaire
2. Focus Group Discussions
2007 Economic Snap Shot
Since 2001, Puerto Rico’s economic growth (Average GNP) has been anemic - less than
2%. In 2006, consumer confidence reached its low point due to a government
shutdown. Significant living cost increases, a new sale tax, and the high cost of
petroleum have fueled a Puerto Rican exodus towards the mainland U.S. Real Estate in
particular has been affected by an inept land use plan (P.U.T.), a “moratorium” of
construction permits, and skyrocketing construction costs (15-25%).
The Real Estate crisis has been particularly tough on investment properties, 2nd homes,
and those projects in poor locations. Specifically, homes ranging from $350,000-
$700,000 have seen their absorption rates increase from 30 days to over 180 days
or more. Lastly, but not least, the majority of Puerto Rico’s financial institutions have
suffered dramatic losses due to accounting irregularities and the sub-prime loan fiasco.
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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Methodology
The methodology of the study was both quantitative and qualitative. In all three
studies a similar format was followed; the guests were received in a casual
cocktail setting. They were presented “boards” of models and floor plans.
Thereafter, there was a short verbal and PowerPoint presentation. The
presentation highlighted the project’s location, architectural design, project
philosophy, and key goals. The guests were served appetizers and were invited
to share their observations with the Cittadella team.
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Adam Greenfader Real Estate Broker
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Each focus group study averaged from 3-4 hours. There were a total of 54
people who responded to the questionnaire. The first study was held in San
Juan, and the remaining two studies in Mayagüez.
Margin of error
There were several questions that individuals responded more than one
answer. There will therefore be discrepancies in the total number of responses
on some questions. Six questions were eliminated completely because of
erroneous or unclear answers.
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Adam Greenfader Real Estate Broker
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Caveat Emptor
Most focus group respondents will give you their wish list when asked
questions without price considerations. Once pricing becomes an issue, the
consumer is more discriminating about what he/she is willing to pay for.
In the Cittadella study the price point issue was avoided. When asked about
value, the respondents were told “very luxurious homes.” They were given a
price per square foot range of $300-$500 S.F.
Target Market
The target market was selected from a group of individuals who reside in
Puerto Rico. The average age of the respondents was approximately 47 years.
There were more 36 male respondents and 18 females. The numbers reflect
both a quantitative difference as well as a cultural bias. A significant percentage
of couples filled out the questionnaire together but signed it with the male
partner’s name.
In order to adequately test the luxury product, high net worth individuals were
required. The high net worth individuals (annual incomes of $200,000 +) were
individually selected by the Cittadella team. For discretionary reasons, no direct
income questions were asked in the study.
However, all of the individuals who participated in the study were selected
based on three key factors:
1) Homeowners
2) Leaders in their respective industries
3) Capable of acquiring luxury homes.
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Adam Greenfader Real Estate Broker
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It is important to note that in the last two focus group studies a majority of
participants were medical doctors.
Conclusions
There appears to be a very strong approval for the proposed product. When
asked, “how much do you like the architectural style of the homes presented?”,
over 75% said “Very Much.” Similarly, the clients responded favorably to the
questions about the interior courtyard concept and large balconies.
When asked, “What is the number #1 reason you would move to a Luxury
home community?”, an overwhelming majority of respondents selected that the
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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ambiance was most important (56%) -more important than the home design
or the services offered.
In discussing ambiance, many respondents emphasized green areas, walking
trails, the recreational facilities, green spaces, and ample lots with large set-
backs to the street. Several slides during the presentation depicted park scenes
and street examples. In conversations with the respondents, these slides were
received very favorably.
In terms of house and lot sizes, 48% prefer homes that are 3,000-4,000S.F and
54% lots that are 2,000-4,000M2. The above noted responses are based on
the designs and photographs presented. It is our experience that open floor
plans with efficient space planning “appear” larger than homes with more
classical designs. Similarly, most of the respondents are seeking lot areas that
provide privacy – privacy from both the street and the adjacent neighbor. There
was no clear consensus if landscaping by the developer was a high priority.
As for single or two stories home models, the majority of respondents fell into
categories typical of their age and demographics. When asked, “How many
floors (levels) do you want in your next home?”, the majority (70%) responded
that they wanted a single story home. There seems to be a clear desire not to
walk up stairs in the 48+ age group.
In the last focus group, a supplemental question with picture was added to
reinforce this question (see question below # 32). The picture was added to
highlight that an elevator would be included in the two story home and that
there would be additional backyard space because of the two story model
configuration. The results were consistent with previous questions – single
story homes received 83%. The three car garage today is standard. Many of
the respondents want four garages. When asked, “How many cars do you want
to park inside your garage?”, over 81% choose either 3 or 4 cars.
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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There is also a trend towards increased services. There appears that the luxury
consumer does not want to hassle with maintenance and installation of a/c and
appliances. When asked “How would you prefer to have your luxury home
delivered?” , over 69% said “Ready To Move-In. ” This trend seems to
contradict the status quo or industry standard of delivering homes without
appliances and A/C systems.
As for community size, smaller still seems to be more luxurious. The majority of
respondents want to live in communities that are between 50 and 200 units.
In sum, it appears the consumer has high acceptance of the product. The
architectural style was well received. The respondents want maintenance free
living – both during the acquisition process as well as afterwards. There seems
to be a desire for large lots and homes that are at least four bedrooms.
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Adam Greenfader Real Estate Broker
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16%
28%
17%
28%
11% Under 35 36-40
41-47 48-55
56+
HHOOMMEE BBUUYYEERR QQUUEESSTTIIOONNNNAAIIRREE
The below noted questionnaire was filled out by 54 respondents after a brief presentation of the proposed Cittadella Projects. The respondents were told that their answers were confidential and that they would be able to confer with their spouses. The majority filled out the questionnaire in 10-15 minutes. We have included below both the original question, the answers received, and when appropriate a graph to highlight the answers. We have also taken the liberty to add comments to some of the answers. 1. What is your Gender? 18 Female 36 Male 2. What is your age range? 9 Under 35 15 36-40 9 41-47 15 48-55 6 56+ 3. What is your marital status? 40 Married 7 Single 7 Living with a partner 4. What kind of home do you own (principal residence)? * 35 Detached Single Family 10 Multi-Family (condo, mid-rise, walk-up) 5 Other N/A * Note: many clients own multiple homes and apartments.
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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0
5
10
15
20
25
30
Motivation To Move
Ambiance of luxury community
Unit layout and bedroom distribution
Support services
8%
61% 29%
2%
3bed / 2 bath
4 bed / 3 bath
5 bed / 4 bath
5 bed / 5 bath
7. What is the number #1 reason you would move to a Luxury home community? (Choose only 1)
30 (56%) Ambiance of luxury community (Landscaping, recreational facilities, amenities) 17 Unit layout and bedroom distribution 6 Support services (concierge, housekeeping, gardening, spa)
8. How many bedrooms and baths do you want in your Home? 4 3bed / 2 bath 32 4 bed/3 bath 15 5 bed/4 bath 1 5 bed/5 bath or larger
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Adam Greenfader Real Estate Broker
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70%
28% 2%
Single story
2 floors
2 floors +
0
5
10
15
20
25
30
Home Size
2,000SF or less
2,000-3,000SF
3,000-4,000SF
4,000 + SF
9. How many floors (levels) do you want in your next home? 38 Single story 15 2 floors 1 2 floors + 10. How many square feet would you like in your new home? 2 2,000SF or less 20 2,000-3,000SF 26 3,000-4,000SF 6 4,000 + SF
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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0
5
10
15
20
25
30
Home Size
900 M2 or less
900-1,900M2
2,000-4,000M2
4,000 M2 +
19%
37%
44%
2 Cars 3 Cars
4 Cars +
11. How many square meters (M2) would you like in your new lot? 1 900 M2 or less 19 900-1,900M2 29 2,000-4,000M2 4 more than 4,000 M2 12. How many cars do you want to park inside your garage? (choose 1 only) 10 2 cars 20 3 cars 24 4 cars or more
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Adam Greenfader Real Estate Broker
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94%
6%
Yes
No
0
2
4
6
8
10
12
14
16
18
20
Recreational Facilities
Basketball and Tennis Courts
Pool
Racquetball Court
Gym
Walking trails
Spa
Entertainment Center
13. Would you pay for your A/C system pre- installed in your home? 50 Yes 3 No 14. What A/C system would you prefer in your new home? (Choose 1 only)
34 Split units in all rooms 13 Central A/C in home 5 Install my own system 15. Please select the 1 recreational facilities you most desire in your new residential community? (Please select one only)
16 Basketball and Tennis Courts 12 Pool 2 Racquetball Court 16 Gym 20 Walking trails 5 Spa 10 Entertainment Center (billiards, ping-pong, Club house)
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Adam Greenfader Real Estate Broker
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48% 52%
Developer includes high quality brands
Buy my own appliances
0
5
10
15
20
25
30
Ceiling Height
8 feet
9 feet
10 feet
10 feet +
16. How often do you use the recreational facilities in your community? 21 Every week 9 Every month 10 Once in a while 7 Never 4 N/A 17. How would you prefer to acquire your home appliances (stove, refrigerator, washer dryer) in your new
home? (Choose 1 only)
26 Developer includes high quality brands 28 Buy my own appliances 18. What would be the minimum ceiling height that you would accept in a new home? (Choose 1 only)
2 8 feet 14 9 feet 29 (53%) 10 feet 9 More than 10 feet
Note: Many clients wrote-in that 10 feet is a luxury. 19. How would you prefer to have your luxury home delivered? (Choose 1 only)
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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6%
24%
70%
Shell Condition
Puerto Rico Standard
Ready To Move-In
3 Shell Condition (exterior windows and plumbing/electrical rough-in only) 13 Puerto Rico Standard (high quality bath & sanitary equipment only) 37 Ready To Move-In (premium appliances, A/C units, bath & sanitary equipment) 20. How important is having a double master (large guest bedroom) in your home? (Choose 1 only) 5 Very important 23 Important 15 Somewhat Important 11 Not Important * Note: that half the respondents think that a double master is important or very important.
21. How important is additional storage space in your home? (Choose 1 only) 25 (47%) Very important 23 Important 4 Somewhat Important 1 Not Important * Note: store continues to be a hot button. Many respondants like the additional covered parking for storage.
22. How important is a walk-in closet in every bedroom? (Choose 1 only)
21 Very important 16 Important 14 Somewhat Important 2 Not Important 23. How important is having a Jacuzzi bathtub in your master bedroom? (Choose 1 only)
13 Very important 9 Important 13 Somewhat Important 15 Not Important * Note: Many older couple report not wanting a Jacuzzi but prefer alternative bathing such as an out door shower or hot tub in the
master balcony.
24. Please select the top 1 home finishing for your new home? (Choose 1 Only)
All Rights Reserved ® Cittadella Focus Group Study
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21%
25% 8%
2%
21%
8% 5%
10%
Floor tiles
Security features
Interior wood doors and frames
Lighting
Energy saving features
Granite counter tops
Bathroom sanitary equipment
Kitchen cabinets
55%
45% Yes
No
13 Floor tiles 15 Security features 5 Interior wood doors and frames 1 Lighting
13 Energy saving features 5 Granite counter tops 3 Bathroom sanitary equipment 6 Kitchen cabinets
25. Would you pay more to live in a community that has concierge services? 28 Yes 23 No 26. What service would you want available “pay per use” in your community? (choose 1 only )
4 In-home chef
4 Child care (babysitting)
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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6%
7%
29%
2%
25%
8%
16%
5%
2%
In-home chef
Child care (babysitting)
House keeping
Vehicle cleaning
Handyman
Spa treatments
Personalized security guard
Medical care
Driver
53% 36%
11% 0% Very important
Important
Somewhat Important
Not Important
18 House keeping 1 Vehicle cleaning
15 Handyman 5 Spa treatments 10 Personalized security guard
3 Medical care 1 Driver
27. How important is energy efficiency (Green Building) for you new home? (choose 1 only ) 28 Very important 19 Important 6 Somewhat Important Not Important 28. How important is it for you to have an electrical generator & cistern included in your new home? 43 Very important 4 Important 6 Somewhat Important Not Important
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81%
8% 11%
0% Very important
Important
Somewhat Important
Not Important
75%
21%
4% 0%
Very Much Much
Somewhat Not
29. How much do you like the architectural style of the homes presented? 40 Very much 11 Much 2 Somewhat Not 30. How much do you like the interior court yard concept? 36 Very much 12 Much 4 Somewhat 1 Not
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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68%
23%
7% 2%
Very Much Much
Somewhat Not
36%
39%
19%
6%
Very Much Much
Somewhat Not
31. How important is the front porch (gallery) concept to your definition of luxury? 19 Very important 21 Important 10 Somewhat Important 3 Not Important
All Rights Reserved ® Cittadella Focus Group Study
Adam Greenfader Real Estate Broker
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0
2
4
6
8
10
12
14
16
18
20
Community Size
50 or less
51-100 units
101-200 units
201-300 units
300+ units
34. What is you ideal community size? 7 50 or less 20 51-100 units 19 101-200 units 5 201-300 units 1 300+ units THIS SECTION IS PRESENTED AS COPIED DIRECTLY FROM THE RESPONDENTS ANSWERS. 35. What would you like to change in order to make the community and home designs even more attractive?
- No piscina en Casa Club., o tiendas en casa club, proveer varias canchas de tenis y gazebo en ellas.
- Cambiar según lo presentado, no lo haría. Pero entiendo que mantener la vegetación
siempre al día sería un éxito. Haría un poco más pequeñas las dimensiones para mejor comunicación.
- More green areas.
- El proyecto es muy bueno, se debe incorporar la topografía al mismo y el uso del
peatón deber ser primordial.
- Design is incredible for the high-end consumer.
- Seguridad, facilidad comercial cercana y mantenimiento areas comunes.
- Make amenities where the members of the community can relate to each other. Security is very important.
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