Have you ever taken any decision for development of land?
How to do best development proposal on your land?
Have you met with people who invest months in planning with architect, their dream plans are changed totally at time of approval.
Have you seen any project went on hold for years due to some unexpected site condition ?
All these situations could be avoided by proper planning based on feasibility report by consultants.
I. Introduction to the feasibility report
II. Factors studied in feasibility report
III. Studies required for types of property development
IV. Feasibility study consultant
1. Introduction to the feasibility report
Feasibility Study and Report determine the potential and possibility of a particular plot, construction or land. It is one of the primary steps that owners, developers or builders conduct. Every construction project should get feasibility report from experts like architect, construction companies, marketing agencies etc.
Feasibility report is a report from experts to determine project’s viability through various perspectives like development, Construction , cost, time duration, profit, etc….
If someone asks me, how to know my land details, I simply say, get feasibility report. It lets you to know your land in detail, in a perspective of future profit. This report can be done for vacant land & sometime for ongoing construction projects also.
2. Factors Studied in feasibility report
Feasibility study is done in various manners to find feasibility of any project. Here are common study factors for feasibility of a construction project.
A. Property Development Feasibility Study
(Also called as Land feasibility study)
Land feasibility study is most important when you buy any land, sell your land or decide to lease or develop any land. It contains a study based on development rules & legal clearances, to give clarity on all necessary pre construction activities for any land development. It also gives idea whether owner can do commercial property development, residential development, Industrial permissions etc. Depend upon feasibility of land cost of land increase.
Factor of Land feasibility study are as follows.
Land zone & development restrictions
Access road width & its type
Natural reservations like river, mountain, Nala.
Development restriction like airport restriction zone, garden reservation etc…
Land ownership & development rights (Clear title land)
Planning authority & building rules
Calculation of FSI & TDR (floor space Index)
Cost of TDR & development charges for various approvals
Other development requirement like Fire Noc, Aviation NOC, Environment NOC etc….
B. Construction Project Feasibility Study
Speed of construction activity on any site varies due to various factors. Cost factor, quality of construction all these also varies due to these reasons. Construction cost, quality control & duration of construction is important factors for planning & scheduling the activities. These are the reasons why construction feasibility for following factors is important. This study is highly important in projects like commercial development, industrial development, institutional projects, hospitals, manufacturing plant etc. where time vs cost play important role in construction.
- Availability of Labour
- Availability of resources like water, electricity, drainage etc…
- Connectivity for material transportation
- Cost of materials
- Site & Soil condition for easement of working
- Space for storage & labour camps
- Climatic conditions & challenges
- Various Local issues etc…
C. Marketing & Sales Study
This study is not important when there is industrial development or. For other projects where sale is involved like residential development, commercial development projects, shopping mall, Hostels this study make huge difference. Marketing agencies do such research and make feasibility report.
- Sale rate in vicinity
- User’s requirement like amenities, room spaces, construction quality.
- Demand and supply of sizes of units (like 2BHK, 3BHK)
- Availability of residential needs like market, hotels, schools etc. . .
- Connectivity of job location, railway stations, airports, High ways, other cities…
- Competition in vicinity (profit margin)
3. Studies required for types of property development
A property can be developed for various reasons like commercial development, residential development, industrial development etc. Not all studies are important for all type of development. Depend upon various factor directly involved in decision making we recommend type of study to type of building.
|No.||Construction Type||Land Feasibility||Construction Feasibility||Sales & Marketing|
|1||Bunglow||should be||Not Must||Not applicable|
|2||Small Apartment||should be||Not Must||should be|
|3||Town Shop development||should be||should be||should be|
|4||Commercial buildings||should be||should be||should be|
|5||Shopping Mall, Multiplex||should be||should be||should be|
|6||Institutional building||should be||should be||Not applicable|
|7||Hospitals||should be||Not Must||Not applicable|
|8||Industrial building||should be||should be||Not applicable|
*Note – Needed = It is always better to get this report to avoid further inconvenience
Not Must = Results are in control of owner. External factor do not affect much. Hence this type of study is not compulsory for certain type of constructions. Thumb rules from known experts will be enough .
Not applicable = Studies which are not applicable for this type of construction project.
4. Feasibility study consultant & Cost
While selecting feasibility report agency, it is important to understand that the team behind making of report must be experienced. The feasibility report must bring some insights to reader. A feasibility report with data analysis brings more value to decisions.
Charges for feasibility varies form 10000 Rs to few lakh rupees depend upon expertise & quantity of work.
Agencies who give feasibility report are can register with foot2feet.
Hence whenever any company is looking for feasibility report, they can give their quotation to meet client’s requirement.
Following points must be considered for any kind of construction
- Due to zone & approval restrictions, Land feasibility is must in any kind of development.
- Feasibility report saves considerable time & money in any construction project.
- Depend upon type of project feasibility should be done
- Cost involved in this report is much lesser that its output.
- Person making such report must be experienced and expert of his field.