Glossary
Feasibility study
Also called: feaso, development feasibility
A feasibility study is a financial model of a development showing expected revenue, costs, finance and profit. Lenders and investors use it to assess whether a project makes sense and how sensitive it is to changes.
An example
Before buying a site, a developer prepares a feasibility study with the expected sale prices, construction cost, fees, finance and holding costs, then tests what happens if prices fall or costs rise.
Why it matters
The feasibility is the starting point for any development finance conversation. Lenders will test its assumptions against their own valuation and QS report, so realistic inputs build credibility.
Points to check
Use realistic, evidence-based inputs for sale prices and costs, and record the source of each assumption. Run sensitivity tests on lower sale prices, higher construction costs and a longer timeline. Lenders and their valuers will test your feasibility against their own assumptions, so be ready to explain any differences. The feasibility calculator lets you model profit, margin and residual land value, with all results shown as estimates only.
Try it: Development feasibility calculator