What is the purpose of a feasibility study in real estate?

The purpose of a feasibility study in real estate is to assess the viability of a project based on various factors. This process involves evaluating aspects such as financial, market, technical, legal, and environmental considerations to determine whether a project can realistically proceed. By analyzing these factors comprehensively, developers and investors can make informed decisions about whether to move forward with the project or explore alternative options.

A feasibility study is essential for identifying potential risks and challenges associated with the project, determining the likely return on investment, and understanding the required resources. It acts as a critical decision-making tool that helps ensure that all relevant information is considered before embarking on a real estate development project.