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
