Slide ARS 406 W12 REAL ESTATE

arum prasasti, mt. mm.
design & engineering
business development
corporate secretary
arum.prasasti@jayarealproperty.com
+62 816 486 4669

November 2014

“The feasibility study is an evaluation and analysis
of the potential of a proposed project which is
based on extensive investigation and research to
support the process of decision making.”
It determines if it:
(1) is technically feasible,
(2) is feasible within the estimated cost, and
(3) will be profitable.

CONSTRAINTS OF REAL ESTATE INVESTMENT:
- HIGH VALUE OF INVESTMENT
- LONG PERIOD OF TIME

- HIGH RELIANCE ON EXTERNAL FACTORS
(REGULATIONS, MACRO ECONOMY, etc.)
- IMMOBILE ASSET
- SCARCITY OF LAND

HIGHLY NEED
PROPER FEASIBILITY STUDY

- Economic Feasibility
- Information related to the project site; labor; utilities; rail, air,
and road service to the site; and the overall economic impact of
the project.
- Market Feasibility
- Information on the sales organization and management, extent
of market and market area, marketing plans for sale of projected
output, and competition.

- Technical Feasibility
- The technical feasibility reports shall address the suitability of
the selected site for the intended use including an

environmental impact analysis.
- Financial Feasibility
- An opinion on the reliability of the financial projections and the
ability of the business to achieve the projected income and cash
flow.