Tool T–01 / Available
Make the development case explain itself.
Connect land, product, pricing, cost, capital, and time in one transparent early-stage feasibility view.
Scenario tools
Share the current assumptions or print the complete result to PDF.
Assumption set
Site & product
Gross floor area
7,000 m²
Saleable area
5,740 m²
Break-even price
KES 145,558
Residual land value
KES 229.4m
Base-case output
Investment view
Development profit
KES 226.4m
Margin on cost
27.1%
Margin on revenue
21.3%
Sensitivity matrix
Price × construction cost.
Each cell shows margin on cost. The center cell is the current base case.
| Cost / Price | -10% | -5% | 0% | +5% | +10% |
|---|---|---|---|---|---|
| -10% | 23.9% | 30.6% | 37.2% | 43.9% | 50.5% |
| -5% | 19.1% | 25.6% | 32.0% | 38.4% | 44.8% |
| 0% | 14.7% | 20.9% | 27.1% | 33.3% | 39.4% |
| +5% | 10.6% | 16.6% | 22.6% | 28.5% | 34.5% |
| +10% | 6.8% | 12.6% | 18.4% | 24.1% | 29.9% |
01
Inputs to prepare
- Site and permitted development area
- Saleable area and achievable pricing
- Construction, professional, marketing, and contingency costs
- Debt share, interest, programme, and target return
02
Outputs to interpret
- Gross development value
- Total development cost
- Project profit and development margin
- Simple return and funding indicators
03
What this does not tell you
- Detailed monthly cash flow and staged drawdowns
- Tax, escalation, infrastructure contributions, and statutory charges
- Unit-level absorption, buyer defaults, and leasing voids
- Legal, planning, technical, environmental, and valuation due diligence
04
Read the result
A 22% margin can still be fragile if it depends on one selling price, a compressed programme, or costs measured against the wrong area. Change one assumption at a time and record which relationship breaks first.
Use this frameworkNairobi Development Feasibility Starter PackMove from a quick calculation to a documented site screen, cost plan, finance-readiness review, and investment recommendation.Open starter pack →Method note
This prototype estimates gross development value from saleable area and average selling price. It applies professional fees and contingency to construction cost, marketing to GDV, and a simplified finance charge based on average debt outstanding.
It does not yet model tax, detailed cash flow, staged drawdowns, presales, absorption, escalation, unit mix, parking, infrastructure contributions, or income-producing exit values. Use it to structure an early question—not to replace a project-specific investment model.
Questions / Method
What the first feasibility should answer.
What does a development feasibility study test?
It connects land, planning capacity, saleable or lettable area, pricing, construction and professional costs, finance, programme, and risk to test whether a project can meet its return requirements.
What is development margin?
Development margin is project profit divided by total development cost. It is a simple return-on-cost measure and should be read alongside cash flow timing, equity returns, and downside sensitivity.
Can this calculator replace a detailed financial model?
No. It is an early-stage decision aid. A live investment decision requires project-specific tax, cash flow, drawdown, sales or leasing absorption, escalation, infrastructure, and exit assumptions.