DEVELOPMENT GUIDE

How to Build a Development Budget

A development budget captures every cost required to acquire, design, finance, build, lease and exit a project.

What the analysis measures

Separate land, acquisition costs, hard costs, enabling works, professional fees, contingency, finance, marketing, leasing and disposal costs.

Assign each cost a driver, amount, tax basis, eligibility and payment period. Avoid one broad allowance that cannot be audited or phased.

Reconcile the detailed budget with sources and uses and cost-to-complete. Track committed, spent and forecast balances during execution.

Use the budget to drive monthly funding and sensitivity. Cost totals alone do not reveal peak equity or interest during construction.

CLEAR ANSWERS

What does “How to Build a Development Budget” explain?

A development budget captures every cost required to acquire, design, finance, build, lease and exit a project.

Which assumptions matter most?

Review the inputs connected to development budget, sources and uses, construction cost and test them together rather than one at a time.

Should I use a calculator or a full model?

Use a calculator for a fast screening result and a full model when timing, financing, operating detail and sensitivities affect the decision.

Can this guide replace professional advice?

It is educational and does not replace deal-specific investment, accounting, tax, legal or lending advice.

Are the linked tools free?

All calculators and guides are free. Full Excel models are priced individually and as a complete library.