What is development feasibility?

Feasibility is the financial model behind your project — it determines whether the numbers work.

A typical feasibility includes:

  • total development cost (TDC)
  • gross realisation value (GRV)
  • project margin and profit
  • build costs and contingencies
  • finance costs and holding costs
  • timeline and staging

Lenders rely heavily on feasibility to assess risk and viability.

What are presales?

Presales are contracts exchanged before construction is complete.

They demonstrate:

  • market demand for the project
  • pricing validation
  • potential exit certainty
  • reduced risk for the lender

In many cases, lenders require a minimum level of presales before funding is approved.

How feasibility and presales work together

Feasibility and presales are closely linked.

In practice:

  • feasibility shows the project works on paper
  • presales show the market agrees
  • together, they reduce lender risk

A strong feasibility without presales may not be sufficient — and strong presales with weak feasibility will also fall short.

How lenders assess feasibility

Lenders take a conservative view of project assumptions.

They will typically assess:

  • accuracy of construction costs
  • realism of end values (GRV)
  • adequacy of contingency allowances
  • project margin after all costs
  • timeline and potential delays
  • developer experience (where relevant)

Overly optimistic assumptions are one of the most common reasons projects are declined.

How lenders assess presales

Presales are assessed for both quality and quantity.

Lenders will typically consider:

  • number of presales relative to total dwellings
  • value of presales vs total project value
  • purchaser profile and contract strength
  • deposit size on presale contracts
  • project location and demand

Different lenders have different presale requirements depending on project size and risk.

Common feasibility and presale challenges

These areas are where most development deals fall short.

Common issues include:

  • overestimating end sale prices
  • underestimating construction or holding costs
  • insufficient contingency buffers
  • unrealistic timelines
  • relying on informal or weak presales
  • not meeting lender presale thresholds
  • poor alignment between feasibility and funding structure

These problems often prevent funding — even where the concept is sound.

How we structure feasibility and presales at Evolve

We focus on aligning the numbers with lender expectations.

This includes:

  • reviewing and stress-testing feasibility assumptions
  • ensuring realistic GRV and cost inputs
  • structuring finance around total project costs
  • identifying lenders aligned to your project profile
  • advising on presale requirements and thresholds
  • positioning the deal to meet lender criteria
  • ensuring the project is viable both on paper and in practice

The objective is to present a deal that lenders can support — not just one that looks good in isolation.

Speak with a broker before committing to a project

Feasibility and presales should be validated before you commit to land or construction.

Before proceeding, it’s worth understanding:

  • whether your feasibility stands up to lender scrutiny
  • how much presale coverage is required
  • how lenders will assess your project
  • what risks exist around pricing and cost
  • how to structure the deal for approval

A well-structured project gets funded. A poorly structured one often doesn’t.

Speak with Evolve Lending & Finance to review your structure and next steps.