Highest & best use study – Dubai

Project Name: Highest and Best Use Study for 7 Plots

Client Name: Real Estate Developer

Location: Dubai

Assets Covered: Residential, Commercial Office, Retail and Hospitality

Project Size: N/A

Project Value: Confidential

Executive Summary:

The client is assessing the development potential of land plots they own in various parts of Dubai, including vacant land parcels and a redevelopment project with an existing building. Their objective is to understand the development potential of each plot and receive guidance on a viable development mix that caters to observable market demand and exhibits sustainable competitive positioning.

Our Solution/Recommendations

Cavendish Maxwell was appointed to conduct highest and best use and feasibility study wherein we undertook the following activities:

• Visited each land plot, assessing competitive advantages by analysing location, accessibility, proximity to demand, infrastructure, and nearby real estate developments.
• Analysed current and future real estate trends, including demand-supply dynamics, and understood factors driving demand for target markets. Identified and analysed competitor value propositions and dynamics crucial for successful project establishment on subject sites.
• Formulated development recommendations for the project, integrating market research, site analysis, and market positioning to propose a development programme.
• Estimated the revenue potential of the proposed project, creating financial projections, including Profit and Loss and Cash Flow statements.
• Additionally, we assessed financial viability using indicators like IRR, Payback Period, NPV, and evaluated outputs across different Loan-to-Value ratios and a sensitivity analysis on IRR and NPV.

Completion Date: 2024