The feasibility and viability study is crucial to ensure the success and sustainability of any project, either individual or public, for you to succeed in construction, especially in the construction industry. To prevent various forms of abandonment in the construction of estates and public buildings, Feasibility and Viability help ensure the project’s completion by first estimating the expenditure and projected income or benefits. This tool is essential to help with meaningful development.
A feasibility study determines whether the project is feasible at a desired location, but feasibility studies involve technical and legal analysis and take into consideration relevant law, financial, and other pertinent areas. The question is- Can we construct the project? In contrast, a feasibility study is used to determine the likelihood of a single investment or project being able to meet a set economic and financial minimum, while a viability study addresses the longer term future of the business. Together, these works help developers derisk, source, and avoid costly failure.
Feasibility and viability studies give the developer a focus on a strategic plan of what to develop, estimating the market demand, the cost of construction, the funding, and the cash flows that are expected to occur. Without those tests, investors are confronting too many hidden risks that could lead to financial loss or the abandonment of some projects.
The Estate Surveyors and Valuers contribute to existing literature on feasibility and viability studies through the following functions: Market Analysis: Estate Surveyors and Valuers analyse supply and demand patterns, market rents, and absorption to evaluate whether there is a market for the proposed development. Cost and Value Analysis; From this valuation analysis, Estate Surveyors and Valuers present cost and value estimates for project cost, land cost, and anticipated return on investment, which corresponds to such financials.
Pitfalls and Risks; Risks and threats, just as you already have identified, Estate Surveyors and Valuers write down the various risks like bad location, legality, lack of funds, and so forth. They write out solutions or strategies to tackle those risks. The monetary involvement is also important in ensuring a successful project; the financial analysis is sorted out by deploying valuation techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback on investment are employed by Estate Surveyors and Valuers to assess the financial viability of a project.
Estate Surveyors and Valuers render services as consultants to developers, financial institutions, and government bodies to guide them in making investment decisions.
The importance of sustaining development to the operational level is paramount to society and the nation at large. The adoption and use of Feasibility and Viability studies can help improve our national life by ensuring the completion of projects at profitable margins. The tool is not just for individual projects but also for healthy urban communities where cognitive resources are invested effectively and integrated to ensure that communities’ requirements and regulations are met. A major facilitator of real estate investment in Nigeria and in other emerging economies is the high degree of risk associated with su’ knowledge drives project proposals, thereby attracting finance must be properly packaged to attract investors or financiers.
In conclusion, Feasibility and viability studies are critical as they fill the space between a great idea and an actual project. Professionally, in valuation, market analysis, and in claims of investments, what that involves, and that’s their professional information, and that’s what estate surveyors and valuers do. Through your collaboration, you mitigate the risk, boost investor confidence, and cultivate sustainable development outcomes. Consequently, no serious project can be implemented without the involvement of the Estate Surveyors and Valuers.
Fadulu is a Lagos-based Estate Surveyor and Valuer.
