A development lives or dies on its feasibility. Before a site is bought or a line is drawn, the feasibility answers the only question that matters: does this project make sense? Here's what that involves.
What a feasibility actually is
At its simplest, a feasibility is a model that weighs everything a project will earn against everything it will cost — and tests whether what's left over justifies the risk, time and capital involved.
What goes into it
- The revenue side — realistic end sale values for each dwelling, less selling costs.
- The cost side — land, construction, professional fees, finance, holding costs and contingency.
- Time — how long the project takes, because time costs money.
Static isn't enough — test the assumptions
A single set of numbers is a starting point, not an answer. A good feasibility is stress-tested: what happens if build costs rise, sales soften, or the timeline stretches? A project that only works in the best case isn't really feasible.
The danger of optimistic inputs
The most common way developments go wrong is optimistic inputs — a build cost that's too low, an end value that's too high. Garbage in, garbage out. Discipline at the feasibility stage is the single best protection against a bad outcome.
How we do it
Studio 72 feasibilities are built in Scout™ on conservative, lender-aligned assumptions, and no project proceeds without passing our internal review. It's how we make sure every opportunity genuinely stacks up before anyone commits.
Frequently asked questions
What is a development feasibility?
A model weighing everything a project will earn against everything it will cost, to test whether the result justifies the risk, time and capital involved.
Why do feasibilities go wrong?
Usually optimistic inputs — build costs set too low or end values too high. Conservative, evidence-based assumptions are the best protection.
Does Studio 72 prepare a feasibility for my site?
Yes — every project is modelled in Scout on conservative, lender-aligned assumptions and passes our internal review before proceeding.
This article is general information only and does not constitute planning, legal or financial advice. Every site is different — seek advice specific to your property.