Feasibility studies are an essential aspect of real estate development, as they help to determine the viability and profitability of a potential project before investing significant time and money. Feasibility studies are conducted to evaluate the financial, technical, legal, environmental, and market factors of a project to determine if it is practical and profitable to proceed.

The study included a market analysis to determine the demand for the different components of the project, as well as a financial analysis to determine the costs and potential returns of the project.

Based on the results of the feasibility study, the developers were able to make informed decisions about the design and construction of the project, including the size, layout, and amenities of the various components. The study also helped the developers to identify potential risks and challenges associated with the project, and to take measures to minimize or mitigate them.

AA+ Appraisal & Consultancy, a real estate consulting firm, has conducted feasibility studies for various real estate development projects in the Philippines. Two notable projects are a hotel in Ermita, Manila, and an integrated marina resort in Lapulapu City.

The first project involved evaluating potential hotel development sites and making recommendations for facilities and brand affiliations. The proposed hotel will be a component of a mixed-use development plan and will cater to the needs of local travelers and businessmen. The market study showed that the most viable project with the highest return on investment is the renovation of the existing hotel, resulting in a projected income and a return on investment of 770%. The project will help promote tourism and create employment opportunities in the area.

The second project is envisioned to be a world-class standard, with a full-service hotel property, condominium, marina clubhouse, and berth slip. The study analyzed the site, physical improvements, and amenities, as well as the outlook for the national economy, capital markets, and resort hotel visitation. The report also projected income and expenses for both the proposed hotels, and the marina component, and provided a feasibility conclusion with respect to the projected return on investment. The project is projected to generate a profit margin with the key assumption that operations will be managed by key executives and the workforce. Two ways to generate higher profit are to link up with an international hotel and obtain TIEZA accreditation.

Both projects are expected to help fill the gap in the government’s thrust to promote tourism and create employment opportunities in the area.