Belfast·SPG002 Development Viability·Page 18·4.5.2
Impact of construction costs and land prices on developer return
Developers who achieve lower construction costs or cheaper land acquisition may realise higher returns while still meeting planning policy requirements in full; conversely, schemes may proceed at lower returns in some cases.
If a developer can deliver a scheme with lower construction costs or can buy the land cheaper, they may be able to realise a higher return, as long as the planning policy requirements are met in full. Similarly, there may be occasions where a scheme can be taken forward for a lower return. However, the likelihood of the level of return being below 15% does not in itself justify a reduction in planning obligations.
Source — /Users/richardhill/Documents/planning-arch-project/data/documents/belfast/SPG002 Development Viability.pdf