What does the term "feasibility study" refer to?

The term "feasibility study" specifically refers to an analysis that evaluates the viability of a proposed property development. This kind of study typically examines various factors, such as economic, legal, technical, and scheduling considerations, to determine whether the project is practical and can be successfully executed.

In the context of real estate, feasibility studies are essential for investors and developers since they help assess if a proposed project will be financially viable and beneficial in the long run. The study may include analysis of market demand, costs, financing options, and potential returns on investment, which are all crucial components in determining the overall feasibility of the project.

Evaluating market trends, assessing property management practices, and inspecting property safety standards are related activities in real estate but do not encapsulate the primary purpose of a feasibility study. These activities could complement a feasibility study but do not directly address whether the proposed development itself is practicable or likely to succeed.