Aim and Objective of Property Feasibility Study

The aim of a property feasibility report is to conduct an in-depth analysis to provide a clear understanding of the potential return on investment for a proposed property development project. The report collates all the necessary information and data on various aspects of property development, including the type of property, location, intended use, target market, completion timeline, funding sources, and profitability. This information can help property developers make informed decisions about whether to proceed with a project and how best to execute it. The report provides invaluable insight into the potential of the project and helps to identify any challenges or limitations that may affect its feasibility. It helps to make a clear base of sound analysis to generate a good return on investment.

Features of a Property Feasibility Study:

• A property feasibility report also includes a comprehensive market analysis which helps to identify trends, opportunities, and potential challenges. This analysis can be useful for investors, buyers, and sellers as it allows them to make informed decisions about the market.
• The study includes a detailed analysis of the financial aspect of the project, including an estimation of the resources and finances required for the development. This helps the developer to arrange the necessary funding and make informed decisions about the project's budget.
• The study includes research on the administrative norms, permissions and restrictions imposed on the construction, development, sale, purchase, and leasing of the property in the specific area or zone where the project is located. This helps the developer to understand how to structure the project and bring it to smooth completion.
• The study includes research on the legal and regulatory requirements of the area or zone where the property project is located. This helps the developer to understand the statutory requirements and take them into consideration, making the project more credible and increasing its viability.
• The study includes an analysis of the natural, topographic, climatic, and socio-political environment of the area, and how it may impact the property development process. This helps the developer understand the project's potential environmental impact and make informed decisions.
• The study includes a detailed analysis of the site, including its valuation, costing, viability, future prospects, amenities, accessibility, and future area development.
• The study includes a detailed plan for the process of procuring the property, including different procurement options for the developer to consider.
• The study includes a schedule outlining the proposed time frame for the project, from start to finish. This helps the developer to structure the process in a more definite and practical format and allocate funds appropriately.

Different Levels of Property feasibility study:

A property feasibility study is a comprehensive analysis of a proposed property development project that covers three crucial levels:

• High-Level Property Feasibility Study: This level of the study provides an overall understanding of the suitability and viability of the proposed site for the project. It includes basic information on the properties of the proposed site, such as available floor space and height, and the type of property that can be developed. It also includes an analysis of the flora and fauna of the site area.
• Static Property Feasibility Study: This level of the study includes a more detailed analysis of the proposed site, involving professionals such as architects and consultants. It includes surveys to understand the property type suited for the proposed site and input from environmental consultants on any potential issues.
• Cashflow Property Feasibility Study: This level of study is conducted just before the purchase of the site. It includes a comprehensive analysis of the additional data collected from consultants and addresses concerns such as costs, time, and revenue. It helps to run sensitivity analyses to predict how the project may behave in different situations, and accurately predict changes that may occur due to changes in costs and revenue or if the project breaks the scheduled deadline.

Key Highlights:

• A property feasibility study is a comprehensive analysis of a proposed property development project that aims to determine the practical and technical feasibility of the project, as well as its potential profitability.
• The study includes key elements such as evaluating the viability of the project, assessing its financial viability, establishing a timeline schedule, identifying legal and regulatory approvals, analysing the potential environmental impact, summarizing statutory rules and regulations, collecting site appraisal details and assessing risks of over or undercapitalization.
• The aim of the study is to provide a clear understanding of the potential return on investment for the project and help developers make informed decisions about whether to proceed with the project and how best to execute it.
• The study includes features such as a comprehensive market analysis, a detailed financial analysis, research on administrative norms and legal and regulatory requirements, an analysis of the natural and socio-political environment, and a detailed analysis of the site.