Is the project economically feasible?
A feasibility study systematically answers the core question of every project development: is the project economically viable given the prevailing market, cost and financing conditions? It combines market analysis, review of planning law, cost calculation and financing structure into a comprehensive picture.
We prepare feasibility studies for residential, commercial and mixed-use projects — as a basis for decision-making for investors and developers, as documentation for the lending bank, or as a foundation for grant applications and discussions with authorities.
The feasibility study includes:
- ✓Location and market analysis (demand, competition, prices)
- ✓Planning law analysis & use concept
- ✓Complete cost calculation (total development costs)
- ✓Financing structure & equity requirement
- ✓Income analysis & yield calculation
- ✓Risk analysis & sensitivity analysis
Feasibility Study
- Market analysis & location assessment
- Complete total development cost calculation
- Yield & risk analysis
- Bank-ready documentation
- Sensitivity analysis
Process of the feasibility study
Initial consultation & scope clarification
Coordination of project size, type of use, intended holding strategy (sale / letting / both) and the level of detail of the study. We provide an initial assessment of the economic feasibility.
Location & market analysis
Analysis of the micro-location, demand situation, competitive environment and current market prices for the planned type of use. Basis for the realistic income side of the calculation.
Planning law & use concept
Analysis of the planning law framework (development plan, § 34 BauGB), derivation of the maximum achievable volume of use and development of an economically optimised use concept.
Cost calculation & financing structure
Complete calculation of total development costs across all cost groups and preparation of the financing structure (equity / debt capital, interest, repayment, bridge financing). Break-even analysis and yield calculation.
Risk & sensitivity
Systematic risk analysis (planning risk, construction cost risk, marketing risk, interest rate risk) and sensitivity analysis across three scenarios: optimistic, realistic, conservative.
Request a feasibility study
We analyse the economic viability of your project — comprehensively, market-based, and with the level of documentation expected by banks and investors.
