Real estate feasibility: from market evidence to go/no-go

Real estate feasibility: from market evidence to go/no-go

We test whether product, pricing, sales pace and financial structure can coexist within the same development before more capital is committed.

Team experience since 2011Proprietary field researchMexico-wide assignments
A decision framework

What the analysis covers

Real estate feasibility is not about forcing a spreadsheet to balance. Commercial assumptions must first be supported: who buys, which alternatives they compare, what they pay and how quickly the market can absorb the product.

We then integrate phasing, revenue, costs, financing and taxes into comparable scenarios. Sensitivity analysis shows which variables drive risk and where management has room to act.

01

Commercial feasibility

Effective demand, competition, pricing, absorption, inventory and achievable market share.

02

Financial model

Revenue, costs, schedule, cash flow, financing, IRR, NPV and return on equity.

03

Scenarios and sensitivity

Downside, base and upside cases; changes in price, velocity, costs, phasing and leverage.

04

Decision memorandum

Minimum conditions, critical risks, mitigants and a go, revise or no-go recommendation.

INMO1 · Method

How we work

Support sales

We derive sales pace and pricing from evidence rather than a financial target.

Model

We integrate the program, phases, costs, revenue, debt and equity.

Stress test

We test delays, lower pricing, cost overruns and slower absorption.

Decide

We define thresholds, risks and the actions required to proceed.

Decision

A recommendation that can be defended

An attractive return in the base case is not enough. The development must withstand reasonable variations and preserve liquidity through the sell-out period.

The model is delivered with identifiable assumptions so the client can review, update and defend it before decision-making bodies.

FAQ

Frequently asked questions

What is the difference between commercial and financial feasibility?

Commercial feasibility tests demand, product, pricing and absorption; financial feasibility integrates those assumptions with costs, timing, debt, equity and returns.

What do IRR and NPV mean?

IRR expresses the cash flow’s rate of return; NPV measures value created at a defined discount rate. Both must be read alongside risk and liquidity.

What is a go/no-go decision?

An explicit recommendation to proceed, revise or stop based on previously defined conditions and thresholds.

Can you review an existing model?

Yes. We audit formulas, commercial assumptions, timing, scenarios and sensitivity and document recommended changes.

Does a feasibility study guarantee the outcome?

No. It reduces uncertainty and makes risks visible; final performance also depends on execution, financing and market change.

Discuss your real estate decision with INMO1

An initial session helps define the asset, question, geography, timing and the most efficient scope.

Book a consultation