What does a feasibility study evaluate?

A feasibility study primarily evaluates the cost-benefit relationship of a property. This involves analyzing whether the potential benefits of a project, such as financial returns or community value, outweigh the associated costs, which can include development expenses, operational costs, and other financial considerations. By assessing these factors, a feasibility study enables investors, developers, and stakeholders to make informed decisions about whether to proceed with a project. It looks at the economic viability and profitability to ensure that investment decisions are based on thorough analysis and realistic expectations.

The other options, while related to aspects of real estate evaluations, do not fully encapsulate the comprehensive focus of a feasibility study. For instance, analyzing real estate investment risks might be part of the feasibility study but does not cover its entirety. Similarly, understanding market conditions for development and reviewing historical property values are certainly important, yet they serve different purposes in the broader context of real estate appraisal and investment assessment.