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Urban Development

January 13, 2025

Generative Design in Real Estate Feasibility

Sofia Malmsten

CEO & Architect

Real estate development has always been a complex process, involving countless decisions that balance site constraints, market demands, and economic feasibility. Traditionally, developers rely on manual workflows, spreadsheets, and isolated software tools to evaluate a site’s potential. However, these methods are often slow, costly, and prone to human error.

Enter generative design—a cutting-edge approach that harnesses the power of algorithms and automation to transform how feasibility studies are conducted. By exploring vast design possibilities in a fraction of the time, generative design is empowering developers, architects, and planners to make smarter, faster, and more informed decisions.

The Role of Generative Design in Real Estate Feasibility

Generative design applies computational algorithms to automatically generate and evaluate multiple design options based on specific constraints and goals. In the context of real estate feasibility studies, this means analyzing:

• Site parameters (e.g., zoning, setbacks, topography, and sunlight exposure).

• Economic factors (e.g., construction costs, rent or sale projections, and ROI targets).

• Functional requirements (e.g., number of units, parking spaces, and amenities).

By inputting these constraints into a generative design tool, users can rapidly produce optimized design solutions that meet both regulatory requirements and financial goals. This iterative, automated process allows stakeholders to assess a site’s potential with unprecedented speed and accuracy.

A typical generative design workflow for real estate feasibility studies, showcasing the application of Hektar AI for smarter urban planning
A typical generative design workflow for real estate feasibility studies, showcasing the application of Hektar AI for smarter urban planning

Key Benefits of Generative Design in Feasibility Studies
1. Time Efficiency

Traditional feasibility studies can take weeks—or even months—due to the back-and-forth between developers, architects, and engineers. Generative design compresses this timeline dramatically. With the ability to evaluate hundreds of potential designs in minutes, teams can quickly identify viable options and eliminate unfeasible ones.

2. Data-Driven Decision Making

Generative design tools integrate with datasets like zoning regulations, market data, and construction cost estimates. This ensures that the design outputs are not only optimized for aesthetics or functionality but also align with economic and regulatory realities.

For instance, a developer can input financial targets, such as achieving a specific ROI, and the tool will generate design options that maximize profitability while staying within budget.

3. Flexibility and Adaptability

Generative design tools allow users to quickly adapt to changing project parameters. If zoning laws change, construction costs increase, or the project’s scope evolves, the system can instantly recalculate and provide updated solutions. This adaptability is particularly valuable in a volatile real estate market.

4. Optimized Land Use

One of the most significant advantages of generative design is its ability to maximize land use. By analyzing variables like building height limits, sunlight angles, and floor area ratios, generative design ensures that every square meter of a site is utilized efficiently. This is especially critical for urban developments, where space is at a premium.

5. Improved Collaboration

Generative design fosters collaboration among stakeholders by providing a common platform to visualize and evaluate design options. Developers, architects, and engineers can work together to refine solutions, ensuring alignment across disciplines from the outset.

Traditional workflow vs the workflow in Hektar AI - for improved feasibility studies with AI
Traditional workflow vs the workflow in Hektar AI

Practical Applications of Generative Design in Real Estate

Urban Mixed-Use Developments

Mixed-use projects are inherently complex, requiring a balance between residential, commercial, and recreational spaces. Generative design can optimize the layout of such developments by evaluating trade-offs between density, open spaces, and traffic flow.

Affordable Housing

In affordable housing projects, cost constraints are critical. Generative design helps identify cost-effective building configurations that maximize unit counts without compromising on quality or compliance.

Site Selection

Generative design isn’t just about design—it can also assist in site selection. By analyzing multiple plots of land against zoning rules, environmental factors, and market data, generative design tools can help developers identify the most promising locations for their projects.

Two key use cases for real estate feasibility studies with AI and generative design: project planning and land acquisition/site selection – both seamlessly supported by Hektar AI
Two key use cases for real estate feasibility studies with AI and generative design: project planning and land acquisition/site selection – both seamlessly supported by Hektar AI

Real-World Example: Transforming Feasibility Studies

Imagine a developer tasked with creating a residential building on a 10,000-square-meter plot in an urban area. The site is subject to strict zoning laws, height restrictions, and parking requirements. Traditionally, this process might involve multiple consultants manually testing different configurations to find the optimal solution.

With generative design, the developer inputs site data, regulatory constraints, and financial goals into the software. Within minutes, the system generates hundreds of potential designs, ranking them by criteria such as profitability, environmental impact, and compliance. The developer can then review the top-performing options, tweak parameters, and make an informed decision—saving weeks of manual effort.

Challenges and Considerations

While generative design offers transformative benefits, it is not without its challenges:

• Data Quality: The accuracy of the outputs depends heavily on the quality of the input data. Incomplete or outdated information can lead to suboptimal results.

• Learning Curve: Teams may need training to fully leverage generative design tools, which can initially slow adoption.

• Creative Limitations: Although generative design excels at optimization, it may struggle with the more subjective aspects of design, such as aesthetics or community integration.

To address these challenges, it’s essential to view generative design as a complementary tool rather than a replacement for human expertise.

The Future of Real Estate Feasibility Studies

As generative design continues to evolve, its potential to revolutionize real estate feasibility studies is only beginning to be realized. With advancements in AI, machine learning, and data integration, the tools will become even more powerful, enabling developers to:

• Simulate market scenarios and predict long-term financial performance.

• Incorporate sustainability metrics to design greener, more energy-efficient buildings.

• Generate highly customized designs that cater to specific demographics or market segments.

• The question is no longer whether generative design will transform real estate development—but how quickly the industry will adopt it.

Conclusion

Generative design is reshaping the way feasibility studies are conducted, empowering stakeholders to make data-driven decisions with greater speed, accuracy, and confidence. By leveraging algorithms to explore a vast range of possibilities, developers can unlock the full potential of their projects while minimizing risk and maximizing returns.

For real estate professionals, adopting generative design is not just a competitive advantage—it’s a step toward a more efficient, sustainable, and innovative future.