Supply, demand and absorption without misleading averages

Supply, demand and absorption without misleading averages

We measure competing supply, actual sales, sales velocity and how long that pace can be sustained to size the development and its cash flow.

Team experience since 2011Proprietary field researchMexico-wide assignments
A decision framework

What the analysis covers

Real estate absorption becomes misleading when it mixes submarkets, segments or periods that are not comparable. A historical average may conceal a recent slowdown, exceptional pre-sales or inventory that no longer competes.

INMO1 calculates net sales and absorption over multiple windows, reviews active inventory and distinguishes potential from effective demand. This supports a defensible sales pace rather than simply copying another project’s performance.

01

Active supply

Active projects, genuinely available units, phases, typologies, prices and substitute competition.

02

Effective demand

Buyers able and willing to acquire the product within the analyzed price, location and time horizon.

03

Absorption windows

Recent, medium-term and historical sales to separate trend, seasonality and exceptional events.

04

Months of supply

Theoretical time required to sell active inventory at the observed net pace, read by segment.

INMO1 · Method

How we work

Normalize

We separate comparable products by submarket, segment, floor area and price.

Clean

We remove cancellations, phase changes, unavailable inventory and duplicates.

Measure

We calculate net sales, absorption, aging and share across time windows.

Forecast

We translate the market into a reasonable pace for the development and its cash flow.

Decision

A recommendation that can be defended

The analysis supports phasing, target setting, capital scheduling and diagnosis of whether weak sales stem from the market, product, price or commercial execution.

Indicators are delivered with clear definitions so they can be updated and compared over time.

FAQ

Frequently asked questions

What is real estate absorption?

The number or percentage of units sold during a period. It should be calculated using cleaned inventory and sales within a comparable market.

Are absorption and sales velocity the same?

They are related, but velocity is usually expressed as units per period while absorption may also be expressed as a share of inventory.

What are months of supply?

An estimate of the time required to sell active inventory if the observed net sales pace continues.

Are potential and effective demand the same?

No. Potential demand meets demographic criteria; effective demand also has the capacity, intent and conditions to buy.

Why are listing portals insufficient?

They may contain duplicates, withdrawn inventory, outdated prices and advertisements that do not reflect actual sales or achieved prices.

Discuss your real estate decision with INMO1

An initial session helps define the asset, question, geography, timing and the most efficient scope.

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