TY  - JOUR
AB  - Purpose– Uncertainty affects all aspects of the property market, but one area where the impact of uncertainty is particularly significant is within feasibility analyses. Any development is impacted by differences between market conditions at the conception of the project and the market realities at the time of completion. This paper sets out to address this issueDesign/methodology/approach– The feasibility study needs to address the possible outcomes based on an understanding of the current market. This requires the appraiser to forecast the most likely outcome relating to the sale price of the completed development, the construction costs and the timing of both. It also requires the appraiser to understand the impact of finance on the project.Findings– This allows the appraiser to address the issues of uncertainty involved and thus provide the decision maker with a better understanding of the risk of development. This technique is then refined using a “two‐dimensional technique” to distinguish between “uncertainty” and “variability” and thus create a more robust model.Originality/value– The feasibility study needs to address the possible outcomes based on an understanding of the current market. This requires the appraiser to forecast the most likely outcome relating to the sale price of the completed development, the construction costs and the timing of both. It also requires the appraiser to understand the impact of finance on the project.
VL  - 24
IS  - 1
SN  - 1463-578X
DO  - 10.1108/14635780610700732
UR  - https://doi.org/10.1108/14635780610700732
AU  - French Nick
AU  - Gabrielli Laura
ED  - Éamonn D'Arcy
PY  - 2006
Y1  - 2006/01/01
TI  - Uncertainty and feasibility studies: an Italian case study
T2  - Journal of Property Investment & Finance
PB  - Emerald Group Publishing Limited
SP  - 49
EP  - 67
Y2  - 2024/09/19
ER  -