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Residual land value and feasibility analysis for a real estate development in Luxembourg.
Weighted area excluding common parts
Average selling price per sellable m²
Gross external area (GEA) or floor area
Works cost per gross m² (€2,500–3,500/m² in Luxembourg)
Soil, geotechnical, environmental studies, etc.
6–10% of works amount
Technical design office — 3–6%
Provision for unforeseen costs (3–8%)
Sales commission, marketing (2–4%)
Interest on developer loan (2–4%)
Project management, site supervision (1–3%)
Share of revenue pre-sold under VEFA before works start
Developer gross margin (10–20% of revenue in Luxembourg)
The developer feasibility is a decision-support tool. Amounts are estimates and do not replace a detailed feasibility study by a construction economist.
Quarterly cash flow estimate with 50% VEFA pre-sales.
| Quarter | Cumulative expenditure | Cumulative revenue | Net position |
|---|---|---|---|
| T1 (M1-3) | 1.177.850 € | 451.250 € | -726.600 € |
| T2 (M4-6) | 2.355.700 € | 1.805.000 € | -550.700 € |
| T3 (M7-9) | 3.533.550 € | 3.610.000 € | 76.450 € |
| T4 (M10-12) | 4.711.400 € | 5.415.000 € | 703.600 € |
| T5 (M13-15) | 5.889.250 € | 5.415.000 € | -474.250 € |
| T6 (M16-18) | 7.067.100 € | 6.768.750 € | -298.350 € |
| T7 (M19-21) | 8.244.950 € | 8.122.500 € | -122.450 € |
| T8 (M22-24) | 9.422.800 € | 9.025.000 € | -397.800 € |
Maximum financing need: 726.600 € reached in T1 (M1-3).
Residual margin variation under different scenarios. Cells show margin (% of revenue) and resulting land value.
| Sale price/m² ↓ / Construction cost/m² → | 2.520 €−10 % | 2.800 €current | 3.080 €+10 % |
|---|---|---|---|
| 7.650 €−10 % | 25.3 % 4.139.899 € | 19.5 % 3.183.341 € | 13.6 % 2.226.783 € |
| 8.500 €current | 30.4 % 5.492.249 € | 25.1 % 4.535.691 € | 19.8 % 3.579.133 € |
| 9.350 €+10 % | 34.7 % 6.844.599 € | 29.8 % 5.888.041 € | 25.0 % 4.931.483 € |
| Sale price/m² ↓ / Financing rate → | 2.0 %−1 pt | 3.0 %current | 4.0 %+1 pt |
|---|---|---|---|
| 7.650 €−10 % | 20.2 % 3.302.094 € | 19.5 % 3.183.341 € | 18.7 % 3.064.588 € |
| 8.500 €current | 25.8 % 4.656.994 € | 25.1 % 4.535.691 € | 24.5 % 4.414.388 € |
| 9.350 €+10 % | 30.4 % 6.011.894 € | 29.8 % 5.888.041 € | 29.2 % 5.764.188 € |