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Based on the results from preceding analyses and investigations, the feasibility study can be carried out to assess the viability of the property development by providing a realistic appraisal of all costs and benefits involved in the proposal and establishing the profit residual along with the required capital investment and appraisal of risks to be faced.

The financial core of feasibility study is development appraisal, which produces a profit margin by calculation and evaluating the estimated amounts of revenue and costs. This result needs to be subject to sensitivity and risk analysis which provide further information on viability and may cause adjustments to the original descriptive proposal. If alternative proposals exist for a property development, then each combination should have its own feasibility study and then compared with the others. Such comparison may present a further optimum alternative which has been created from refinements from the initial array of alternatives.

Output from this phase should include at least two components: (a) a decision to develop or not, and (b) if the decision is to develop, a clear description of what it should be and how to develop it and by when it should be developed.