What a feasibility study actually needs
The numbers a real feasibility study pulls together, and what each one tells you.
A property feasibility study for a Nigerian development typically covers profit and ROI, profit margin, the Total Development Cost multiple, and, where a hold-to-rent fallback is on the table, rental yield and break-even. It also separates land cost from construction cost so each can be checked independently. A study without all of these is usually incomplete, since profit alone doesn't show whether a project clears the return a developer actually needs.
"Feasibility study" gets used loosely, but the numbers that actually make one useful are consistent across most Nigerian residential and commercial projects.
The core numbers
- Profit and ROI: the absolute return and the return relative to capital deployed.
- Profit margin: profit as a share of total sale revenue, not just cost.
- Total Development Cost multiple: how many times the achievable sale price covers the full cost of delivering the project.
- Rental yield and break-even: relevant if a hold-to-rent fallback is being weighed against an outright sale strategy.
- Land cost vs. construction cost split: so a high land cost isn't masked by an otherwise reasonable build rate, or vice versa.
Why margin and multiple matter more than raw profit
A project can show a healthy naira profit figure and still be a poor use of capital if the margin is thin or the multiple barely clears cost. Margin and multiple are what let two projects of very different sizes be compared fairly against each other.
When to run rental yield alongside sale numbers
If a location or product type has any chance of not selling at the assumed price or timeline, rental yield and break-even give a fallback view of the same project as a hold-to-rent asset, so the feasibility check isn't entirely dependent on one exit strategy working out.
See this against your own project's numbers
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Check Compliance For FreeQuestions people also ask
What should a feasibility study include for property development in Nigeria?
At minimum: profit and ROI, profit margin, the Total Development Cost multiple, and the land-to-construction cost split, with rental yield and break-even added if a hold-to-rent fallback is being considered.
Is profit alone enough to judge a project?
No. A project can show profit and still be a weak use of capital if margin is thin or the cost multiple barely clears break-even, which is why margin and multiple are checked alongside raw profit.
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