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3 essential steps to determine the feasibility of a real estate development project

3 essential steps to determine the feasibility of a real estate development project

Development project: Conducting a real estate development feasibility study for your construction project can be a real challenge. But with the desired guidance and tips, you can make a significant investment in your project without making mistakes.

So, what is real estate development?

Is it a company? Or rather: place an order that will make your business worthwhile! And for that, a real estate feasibility test is mandatory.

Before any construction project is undertaken, a comprehensive feasibility analysis is essential to analyze whether the project is financially and technically feasible within the working capital accumulated.

But there are different forms or methods to carry out such a feasibility analysis. To do that, you need to follow a three-step guideline that will help you achieve your goal with the minimum of fuss!

Step 1: Conduct extensive market research

For any kind of building or construction project, it is critical that you make sure you actually want the type of project and the resources available at the time. In addition, real estate should appeal to your intended customers and be within your investment range.

The first and foremost is to familiarize yourself with the type of neighborhood you are dealing with. After that, check out the services and immunities that would entice your buyers to your proposed project.

It is an essential step of market research, who are you approaching a local real estate agent and researching the best-selling areas in the neighborhood. Also take a detailed note of your real estate development feasibility study.

Step 2: Consult with a professional real estate development team

Always keep in mind that real estate development is not a sole proprietorship! you must be part of a team of special is an expert who will guide you through the entire feasibility process. Due diligence is required at every step, as failure of any part can cost you the entire project.

Some of the members of the team you should consult with include:

Real estate accountant

Consultation on the best structure to purchase as a property and to discuss the text implications during the development of a project, it is in your best wish to keep the property accountant in good faith.


Pointless to say, but still worth remembering - an architect is a crucial piece in the whole puzzle! So build a bond with him / her.


While you are conducting a property development feasibility study, a lawyer will assist you to keep an eye on all restrictive covenants and facilitate the markup process for you!

Real estate agents

They help you determine the value of your construction project and also ensure that the rental income is finalized after the start of the project. Among other things, there is the bank representative, surveyor along with other professionals who actively participate in the successful implementation of your proposed project.

Step 3: It's time for numbers!

When figuring out the profitability of your construction project, it is essential to keep track of the numbers as this is one of the core aspects of your feasibility study. Some of the aspects to consider are:

    Construction costs
    Professional and municipal fees
    Purchase price of the project undertaken
    Marketing and financing costs
    Holding and additional costs

This is a crucial step in your real estate development feasibility test, turn off the best brain to find out how much you can receive as expected returns! It is advisable to consult a professional planner from the first step to assess the feasibility of your project. Also, you would get the necessary help every step of the way, such as whether you have enough profit in the deal to continue with your project or to go back. This is all the information you need to know from now on!


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