What a feasibility study analyses in this sector
- Highest-and-best land use
- Unit mix & price list
- Sales / leasing absorption
- Development cash flow
- Profit margin & return on equity
Examples of real-estate projects we study
Residential projects and gated compounds, mixed-use towers, office and commercial buildings, warehouses and logistics parks, build-to-rent housing, and tourism-oriented real-estate developments.
What does a real-estate feasibility study analyse?
- Land and highest-and-best use: permitted building parameters and the use that creates the most value from the land.
- Market and demand: sale and rental prices in the area, competing projects and target buyer segments.
- Unit mix: unit types, sizes and proportions that match demand and purchasing power.
- Costs: land, design, construction, infrastructure, marketing and government fees.
- Absorption: how many units can be sold or leased per month and how long it takes to market the whole project.
- Cash flow: a timeline of construction spending against down-payment and instalment collections, identifying the funding gap.
- Return indicators: profit margin, internal rate of return and return on equity.
Key risks in real-estate projects
The main risks are rising building-material costs during construction, slower-than-planned sales, licensing delays, and collections that do not keep pace with spending — which can create a cash shortfall even when the project is profitable on paper. The study therefore focuses on monthly cash flows and on scenarios for sales speed.
What to prepare before the study starts
It helps us to know the location, size and legal status of the land, the approved building parameters such as height and plot coverage, the use you have in mind — residential, retail or office — the land cost or current value, the financing available, and whether you plan to sell the units or hold them for rent. Any preliminary architectural designs let us estimate construction costs and the unit mix more accurately.
How SCOOP helps
We analyse the market and competing projects, recommend the unit mix, price list and payment plans, build a financial model that shows funding needs through each development phase, and prepare the study for partners or real-estate lenders.
FAQ: feasibility studies in the Real Estate Sector
Why does a real-estate feasibility study focus on cash flow?
Because a project can be profitable overall yet run short of cash if construction spending runs ahead of down-payments and instalments. The cash-flow schedule shows how much funding is needed and when.
Does the study propose payment plans for buyers?
Yes. We propose payment plans that match the market’s purchasing power and show how each plan affects collections and the project’s funding needs.