Property Guide · Cyprus

Property Development Due Diligence: Questions to Resolve Before Design

A development concept can become expensive if it is based on assumptions about the site. Due diligence is the process of replacing those assumptions with verified information before too much design or money is committed.

Introduction

A development concept can become expensive if it is based on assumptions about the site. Due diligence is the process of replacing those assumptions with verified information before too much design or money is committed.

This is a project-planning checklist, not legal or financial advice.

Site / title / boundaries

Use appropriate professional/official sources to confirm ownership, boundaries, access and any relevant legal constraints.

Planning/buildability

Confirm current site-specific planning context before relying on floor area, use, height or other design assumptions.

Physical site

Review topography, existing structures, drainage, access, ground/site information and other physical constraints relevant to the project.

Infrastructure

Check electricity, water, drainage/wastewater, communications and road/access requirements.

Intended market/use

Define who/what the development is for. The same site can produce different outcomes depending on the target occupier/user and specification.

Budget and viability

Separate:

  • land/site cost;
  • consultant/approval costs;
  • enabling works;
  • construction;
  • external works;
  • specification;
  • contingency;
  • finance/holding/other commercial costs as assessed by appropriate advisors.

Do not present returns as guaranteed.

Programme

Identify dependencies such as approvals, design, procurement, construction access and long-lead items.

Responsibility

Clarify which party manages each part of feasibility, design, approvals, procurement and construction.

Decision gate

Before moving from feasibility to detailed design, ask:

  • is the intended project permitted/feasible enough to continue?
  • does the site physically support it?
  • are infrastructure/access implications understood?
  • is the budget direction credible?
  • are major risks visible?
  • is responsibility clear?

FAQ

Is due diligence only a legal process?

No. Legal/title checks are important, but development due diligence also includes planning, physical, infrastructure, technical and commercial questions.

When should due diligence happen?

Before detailed design and major commitment, with updates as new information becomes available.

Can a developer replace a lawyer or planning professional?

No. Use the appropriate independent qualified professionals for legal/planning/financial matters.