Feasibility software for real estate development is a must for real estate development professionals. Feasibility software not only expedites the analysis process but also prevents human error from creeping in.
In this post we will explore the needs and benefits of feasibility software for real estate development projects.
What is Real Estate Development?
Real estate development is the process of transforming raw land or existing buildings into usable real property. It involves a variety of activities, including purchasing and managing properties, obtaining financing, making plans for construction and design, marketing the finished product to potential buyers or tenants, and more.
Real estate development can be a lucrative business venture; however, it requires an immense amount of planning and expertise to be successful.
The first step in any real estate development project is identifying land in a suitable location with potential for growth. Location plays an important role in determining the success of any real estate investment; therefore, it’s essential that developers conduct proper site analysis into local demographics, zoning laws, market trends and other factors that could influence the value of their project.
Once a desirable area has been identified then developers must conduct market research and detailed feasibility study.
Once a project is projected to be feasible, the developer should begin assembling resources such as capital (funding), labor (construction workers), materials (building supplies) etc., which will allow them to create their desired vision on that piece of land.
Next comes creating plans for what will eventually become the finished product – whether it’s residential homes or commercial office space – by working closely with architects who specialize in creating designs tailored to meet specific needs while also adhering to local building codes and regulations. After all the necessary permits have been obtained from city officials then work can finally begin on constructing whatever structure was planned out during this stage.
Once construction has started, comes marketing & leasing/selling - typically done through third-party agencies like brokers & agents who are responsible for finding interested buyers/renters willing to pay enough money so that developers turn decent profits from their investments over time.
All things considered there’s no denying just how complex yet rewarding real estate development can be when done right; not only do you get chance make your mark upon landscape but also potentially make some serious money doing so!
Most critical step for any successful real estate development is conducting a through feasibility study. A feasibility study helps you to analyze the viability of your project, identify potential problems and risks, determine necessary resources needed for the success and make informed decisions about whether to proceed with the project. It can help save time, money and other valuable resources by ensuring that the project has the best chance for success before investing.
Importance of Feasibility Study
A feasibility study can provide insight into the various aspects of a proposed real estate development by examining things like market size and trends, competition analysis, financial projections and highest & best use. By analyzing these areas closely upfront, investors can gain invaluable information on whether the project is worth pursuing.
The benefits of conducting a feasibility study extend beyond just financial considerations. It can help you to identify potential risks and challenges associated with your project and come up with strategies for mitigating those risks. A feasibility study will also provide an opportunity to refine the scope of the project, which may result in a more efficient use of resources.
At Feasibility.pro, we understand the importance of a thorough feasibility analysis when considering any type of real estate development. Our team has extensive experience in helping real estate developers analyze their ideas from every angle so they can be sure they’ve taken all the necessary steps.
If you’re looking for a reliable platform for conducting a thorough and accurate feasibility study for your real estate projects, look no further than Feasibility.pro. We have been working hard to develop the next generation of real estate feasibility software (more details to follow).
Why Excel is not the Answer?
It’s no surprise that Excel errors can lead to costly mistakes, but few people realize just how devastating these mistakes can be. In fact, a single Excel error recently caused a company to lose over $1 billion in potential earnings.
The company in question is Australia-based Qantas Airways, one of the world’s largest airlines. The problem occurred when an employee was entering data into an Excel spreadsheet and accidentally typed “billion” instead of “million” when inputting the projected revenue for their upcoming year. As a result, they overestimated their expected profits by 10 times what they made—a difference of more than $1 billion!
Another spreadsheet error led to Edinburgh hospital opening delay! An NHS Lothian-commissioned review found a "human error" in a 2012 spreadsheet with the specifications for air flow in critical care rooms. The mistake was missed in what auditors describe as a "collective failure".
These mistakes illustrate just how important it is to double check your work when using Excel. Even small typos or miscalculations can have huge repercussions if not caught early on. Fortunately for Qantas, the error was discovered before too much damage had been done; however, this incident serves as an excellent reminder that even experienced professionals need to remain vigilant while working with spreadsheets.
To prevent similar incidents from occurring in the future, businesses should consider investing in software which is less prone to human errors.
One of the best ways to ensure that mistakes like these don’t happen again is to use feasibility software. Such software significantly reduces the risk of human errors by the way of various checks and controls. Users cannot make any mistakes in the formulas as they are fixed and tested extensively.
By taking advantage of feasibility software, companies can save themselves from costly errors due to incomplete information, incorrect inputs, and formula errors. Not only will they have access to more reliable platform, but they’ll also gain valuable insight into how their strategies might play out if implemented in the real world. Ultimately, using feasibility software helps create better business decisions by covering all basics before moving forward with a new project—ultimately reducing losses associated with Excel errors down the line!
Feasibility.pro is a powerful real estate software solution that helps developers, investors, and asset managers to manage their property portfolios with ease. It offers a range of features that make it an invaluable tool for those in the real estate industry. Here are some of the top advantages of using Feasibility.pro:
- Easy to Use: Feasibility.pro has a user-friendly interface which makes it easy to learn and use even if you have no previous knowledge or experience in real estate feasibility software solutions. It also includes helpful tutorials and online help resources so users can quickly become familiar with its features and functions quickly.
- Comprehensive Reporting: Feasibility.pro provides extensive reporting tools which allow users to keep track of their properties, projects and investments. Its detailed reports provide accurate insights into performance metrics such as NPV, IRR, RLV, Development Profit etc., making it easier for decision makers to understand the current state of the project.
- Streamlined Workflows: By leveraging automation capabilities within Feasibility.pro’s workflows feature set; users can easily streamline processes such as sensitivity analysis, testing various options - saving them valuable time and effort when dealing with multiple projects across different locations or jurisdictions simultaneously.
- Flexible Pricing Solutions: With flexible pricing plans available on both monthly subscriptions and annual licenses based on user needs & requirements; Feasibility.pro allows customers access to cost effective yet comprehensive real estate feasibility solutions without having to invest large sums up front.
Feasibility.pro is an innovative software platform designed to make the development process faster, easier, and more efficient. It was created by a team of experienced real estate professionals with the aim of providing a comprehensive suite of tools for doing feasibility studies. The platform is built on top of open-source technologies, making it easy to use and extendable for any project.
The Feasibility.pro software has 4 modules:
- Standard Feasibility Module
It will be the most comprehensive real estate feasibility software ever. You can analyze real estate development opportunities with ease. You can conduct sensitivity analysis to manage your development risk.
You can evaluate the residual land value, calculate project KPIs including development margin, net present value, and internal rate of return
- Master Plan Feasibility Module
We have created world's first master plan feasibility module, using this you can confidently handle complex, master planned mixed-use development projects.
You can also do Master Infrastructure Cost Allocation and analyze by Phase, Land Use, Asset Type etc.
- Hotel Feasibility Module
A huge leap in hospitality development analysis, by using this module you can analyze all your hospitality development projects - hotels, services apartment, and branded residences.
- Mix Optimization Module
Your new superpower for test-fit and product mix optimization. You can optimize your product mix for the best return.
This module offers the most comprehensive tool for highest and best use analysis.
Ultimately, conducting a feasibility analysis by using Feasibility.pro software allows decision makers at all levels within an organization—from executives down through individual development managers - to have confidence that they are making informed decisions.
Overall Feasibility.pro simplifies the development process while still being flexible enough to fit any project’s needs - whether it’s small scale or large mixed use development requiring scalability and reliability.
We are offering a 15% early-bird discount to anyone who registers before the launch in Q3 2023.
Hope you enjoyed this post on Feasibility software for real estate development, let me know what you think in the comment section below.
About the Author
With a background in engineering and finance, have handled projects in varied geographies including UAE, Qatar, Oman, UK, Fast East and Eastern Europe
Responsible for delivering financially viable projects
200+ projects covering almost every real estate asset classes
Total area of completed and running projects is in excess 2,500,000 sqm
Talks about #proptech, #realestate, #canadarealestate, #realestateinvesting, and #realestatedevelopment
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