Market and Feasibility Analysis
Delineation of The Market Area
The market area is determined by:
employment opportunities
Analysis of Recent Trends
Housing demand within the market area
Economic factors behind recent trends
Determination of Future Demand
Past + Present market
Future Demand
employment opportunities
Income
Population
Household characteristics
Absorption rate
etc
Analysis of Potential Supply and Possible
Competing Projects
Financial Feasibility Analysis
Financial feasibility analysis uses information from the previous steps to evaluate whether a project can be delivered within a price range the target market can afford over the period of time it will take to plan, develop, construct and fully occupy the building or sell off all of the units
Costs
Revenues
Financial Ratios ROI
IRR (min 20%)
