An assessment of a proposed property development project’s viability, incorporating market analysis, financial projections, legal considerations, and environmental impact studies. For example, prior to constructing a new apartment building, developers often conduct this assessment to determine whether the projected rental income will offset construction costs and generate a profit.
Such an analysis serves as a crucial tool for investors, developers, and lenders, mitigating risk by providing data-driven insights into the potential success or failure of a project. Historically, these detailed reports have evolved from simple spreadsheets to complex models incorporating sophisticated analytics, mirroring the increasing complexity of the property market and financial instruments used to fund development.
