The importance of feasibility study in the land selection: example of a residential land

Abstract

The construction industry requires large amounts of capital expenditure. There are many sub-units in the construction industry such as residential, commercial, road, bridge, etc. which is making the sector prone to many risks. One of the most important criteria at the beginning of the decision-making process in construction project is the selection of the right land. The cost analysis should be done correctly in the selection of the land and the benefit to be obtained from the project should be determined by considering all the details. Therefore, the feasibility study of the land can be compared with the investment cost and project benefit. In order to determine the suitability of the investment to be made, Net Present Value (NPV), Internal rate of return (IRR) and benefit/cost analysis criteria should be checked. This study covers a feasibility study for a project in Antalya. The study is aimed to calculate Net Present Value (NPV), Internal rate of return (IRR) and benefit/cost criteria. The purpose of this study is to emphasize the importance of feasibility study on land selection in projects. In the study, sample fields were selected for the purpose and feasibility studies were performed for these lands.