Development proposal

The development proposal is synonymous with the feasibility study.

The development proposal or feasibility study is a an overall conceptual design for a building plot. It is undertaken by an architect, who carries out the preliminary investigations with regard to public ordinances (planning and development regulations), private ownership legalities (Land Registry records, easements and covenants), and any geographic/topographical considerations of relevance in order to weigh up all the development options for a given property.

Following this, all the construction options are set out – for example, the number of apartments / houses that can be built on a plot. Normally, ancillary spaces (e.g. cellars and garages) are included in the planning process. The development proposal does not usually set out detailed floor layouts at this stage. Following the development proposal, it is possible to estimate construction costs. The broker is then in a position to publicise the sales prices of the projected properties as proposed in the development concept. It is on this basis that the classic back-tested method of calculation is applied; in other words, it is possible to arrive at the relative land value.