Land development feasibility study is a bit different than property development feasibility, and it is mostly used to assess the best option for a land subdivision.Consider a scenario where a developer (master developer) acquires a large piece of land with the purpose of sub-dividing it and selling to smaller developer. Usually, master developer provides infrastructure and utility to the newly created plot boundary. To assess the profitability of such venture, the master developer conducts land development feasibility study. In any project requiring property development, the most important factor is the land. It is particularly important to ascertain the potential of the land. The potential of the land relates to many areas like the geo-stability of the land, its socio-political value, market value, and its growth prospects, and so much more. A land development feasibility study provides all the relevant information to ascertain the practical and commercial viability of the selected land or plot.
What is Land Development Feasibility Study?Land development feasibility study is an analytical and systematic insight and study into the viability criteria of a selected plot or land. A land development feasibility study systematically collates all information and data on all the factors that make a plot or land worth investing in. It is a study of the potential of the land about how the land adds value to the property project, and how suitable it is for the proposed property development. The purpose of the land development feasibility study is to collect and study data to help the property developer to ascertain:
- Commercial viability of the land
- Geo-stability of the land
- Social value and environment of the land
- Future growth potential of the land
- The value a piece of land adds to the project
- Suitability of the land for the proposed property development undertaking
- Probable challenges that the land poses
- The rules, regulations, and zonal laws around the land
- The advantages the land offers
- The flora and fauna and natural environment of the land like forests, rivers, vegetation, animal profile etc.
Objective of Land Development Feasibility StudyThere are many areas of a piece of land or plot that need to be researched upon, before embarking upon building a property on it. A good land development feasibility study helps to determine the suitability and the readiness of a piece of land for a proposed property project, whether for commercial use or personal use. It ascertains:
- How to maximise the advantages the land offers
- How to minimise damages and risks
- How to fortify and protect the project and property against environmental hazards like cyclones, earthquake, storms, floods, blizzards, extreme heat or cold, heavy monsoons etc.
- How to develop the best suited design
- How to lay out the best plan, which also safeguards the flora and fauna and natural resources of the area
- A land feasibility study considers all the features and challenges of a plot of land to determine if building on it is practical and profitable or not
Land-Use Profile in Land Development Feasibility Study.Land-Use profile sums up the entire essence of the land development feasibility study. In a nutshell, Land-Use Profile is a study that determines how the land can be used to its highest potential, and bring in the best returns for the investment on it. Land-Use Profile helps to determine:
- Compatibility of the land with the proposed design and goal of the property to be developed on it
- Location of the land, which is a crucial factor in determining the practical and commercial viability of the property developed on it. Also, location of the land determines the accessibility of the property, and the easy availability of the utilities for it
- Comparative analysis on advantages of the selected land over other land-uses in an area. This supplies adequate data and argument as to why a particular land is preferred over other land in any given area
- Mapping or Cartographic representation is an important segment of Land-Use Profile in a land development feasibility study
- Physical development in the proposed area
- Social Environment of the area about its classification based on monetary worth, social worth, and income profile of the area
- The existing pattern of ongoing development in the area
- A research outline that helps to predict the future use of the land
- personal opinions
- legal and political considerations.
Key Components of Land Development Feasibility StudyThere are many factors that characterise a land profile. The physical structure, commercial value, social environment, natural environment, all of these factors add up to define the profile of a land or plot. A detailed study and analysis of the key components of a land profile is integral to a good Land Development Feasibility Study, that gives credibility to the property project, and gives the developer the confidence to move ahead.
- Challenges of the Physical Environment: This involves a study of:
- topography of the area
- flora and fauna
- geographic conditions like soil structure, water bodies, forests etc.
- climatic conditions
- stability of the land, as to whether it shifts or is set
- Challenges of the Social Environment: This involves a study of
- The people demographic on salary, work environment etc.
- The socio-political environment of the area
- The commercial prospects of the area
- Rules and regulations
- Availability of Utilities
- Understanding of the Property Goals
- Budget and Cost
- Accessibility of the Land
- Rules and Regulations and Legalities
ConclusionWhen narrowing down on the most appropriate and suitable site for a land development project, it is important to have accurate information and statistics on all areas of influence on that land. A land development feasibility study provides a crucial and an in-depth insight into all aspects, challenges and advantages surrounding the land selected for the proposed property development. A land development feasibility study determines if the property development project is viable on the selected land or not. Or how it can be modified to bring in the best results. You should also explore below external contents on the land development feasibility study:
- What is a feasibility study? - hilinehomes.com
- What is a market feasibility study? – xperagroup.com
- Property Development Feasibility Study - propertyinvesting.com
- Property Development Feasibility Analysis - opteonsolutions.com
- Property Development Feasibility 101 - archistar.ai
- What is a Feasibility Study? - designeverest.com
- The Importance of Performing a Feasibility Study - saundersrealestate.com
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