1. Legally permissible
The use must comply with zoning, RTRW, RDTR, KDB, KLB, and permits. Our team reviews spatial planning and other restrictions before options are studied further.
Introduction
What Is Highest and Best Use (HBU)?
Highest and Best Use (HBU) is a real estate concept referring to the use of vacant land or an improved property that is physically possible, legally supported, financially feasible, and produces the highest value. The concept applies regardless of the current actual use.
An HBU study seeks to identify which use gives maximum value to a vacant parcel or an already developed parcel. Property value and its use are closely linked, so the best use is the one that produces the highest value today and the greatest net return over a given period.
As a Highest and Best Use consultant, JULIZAR also considers surrounding environmental impact, competitive strength, local politics, and the timing of potential property development. HBU analysis can be done as a stand-alone job or as part of a feasibility study and property appraisal.
When you need us
When Do You Need an HBU Study?
- Own vacant land and have not determined the right development function
- Own a building or asset that is not optimally used (non-core assets of state-owned enterprises)
- Planning redevelopment, renovation, or reconstruction of a property
- Comparing options such as offices, vertical housing, hotels, retail, warehouses, or mixed-use
- Preparing a decision basis before a feasibility study, partnership, or asset sale
- Answering the doubts of investors, banks, and shareholders before construction starts
Criteria
Four Criteria of Highest and Best Use Analysis
Each potential use is tested in sequence. A use that is not legally permitted or physically impossible will not proceed to the financial feasibility test.
2. Physically possible
We assess area, shape, topography, soil bearing capacity, accessibility, utilities, and existing building condition to determine realistic building types.
3. Financially feasible
We prepare projections of construction cost, rental or sales revenue, ROI, and investment indicators for each option that passes the legal and physical tests.
4. Maximally productive
From all feasible options, we recommend one concept that produces the highest land value and the most optimal long-term benefit.
Property types
HBU Studies for Land, Buildings, and Assets Across Indonesia
We offer highest and best use studies for office, retail, industrial, and land properties, whether privately owned or state-owned.
Vacant land HBU study
Determining the most profitable function for vacant land: housing, commercial, office, hotel, or mixed-use, complete with location market analysis.
Office and building HBU
Assessing whether a building should be kept, renovated, or rebuilt (redevelopment) to raise asset value.
Retail and commercial HBU
Analysis of shopping centers, shophouses, and commercial areas based on demand, competition, and rental income potential.
Industrial and warehouse HBU
Studies of industrial estates, logistics, and cold storage for land near ports, toll roads, or distribution hubs.
Hotel and apartment HBU
Comparison of vertical housing, apartments, and hotels in premium locations with occupancy and price projections.
Non-core state-owned asset HBU
Optimizing unused state-owned land and buildings so they provide clear, accountable income contributions.
Have land or an asset that needs assessment?
Tell us the location and condition of your asset. We will send an HBU study quotation and time estimate.
Our clients
Who Uses JULIZAR's HBU Consultants?
Most of our clients are real estate developers and state-owned enterprises that hold buildings or land that are not yet used, so the assets provide no benefit yet. Private landowners, investors, and companies also use HBU studies before building, partnering, or selling assets.
The study results help you answer doubts before construction starts: which function is most feasible, what the potential value is, and which risks need to be anticipated.
Deliverables
What You Receive From an HBU Study
- A complete HBU study report with conclusions and a recommendation for the single best function
- Tests of the four criteria: legal, physical, financial, and maximum productivity
- Market, demand, competitor, and price analysis at the asset location
- Financial simulation: construction cost, revenue, ROI, and payback period
- An executive summary for directors, banks, and investors
- A presentation and results discussion session with your team
Process
Work Stages of a Highest and Best Use Study
Brief
Owner's goals, asset data, and location.
Survey
Site, spatial planning, and market survey.
Test 4 criteria
Legal, physical, financial, productive.
Simulation
Financial projection for each option.
Report
Recommendation and presentation.
Start your HBU study
Send a short brief about your asset, location, and goals. The first consultation is free, no obligation.
Advantages
Why Choose JULIZAR as Your HBU Consultant?
| Status | Advantages | Explanation |
|---|---|---|
| More than 15 years of experience | preparing HBU studies, feasibility studies, and market research | |
| Trusted by state-owned and private companies | including Pelindo III asset studies and property developers | |
| Analysis based on market data | transparent assumptions that can be retested | |
| Objective recommendations | one best concept, not one-sided wishes | |
| Direct communication | via WhatsApp and meetings in South Tangerang |
Investment
How Much Does an HBU Study Cost and How Long Does It Take?
Cost and duration depend on the number and size of assets, location, depth of market analysis, field survey needs, and the completeness of data from you.
We provide a quotation and time estimate after the initial brief. The first consultation is free.
HBU, Feasibility Study, or Property Appraisal?
An HBU study determines the best function of an asset. A feasibility study tests the chosen project technically, legally, managerially, environmentally, and financially (NPV, IRR, payback period). A property appraisal calculates the asset's market value. The three complement each other, and we can carry them out in sequence.
Learn about Feasibility Studies →Experience
HBU Study Projects We Have Completed
Examples of Highest and Best Use studies for state-owned enterprises and developers in various Indonesian cities.
HBU Study in Setiabudi, South Jakarta
Land in the Golden Triangle area for PT Bina Konstruksi Abadi: office, vertical housing, hotel, or mixed-use options.
View project: HBU Study in Setiabudi, South JakartaHBU Semarang Srondol Kulon
Non-core Pelindo III land in Upper Semarang, tested for apartments, housing, and integrated commercial use.
View project: HBU Semarang Srondol KulonHBU Mataram, Jalan Majapahit
A Pelindo III asset in a prestigious Mataram corridor with studies for offices, a hotel, and a commercial center.
View project: HBU Mataram, Jalan MajapahitHBU Banyuwangi
A Pelindo III asset at the Java-Bali gateway: logistics, processing industry, and tourism.
View project: HBU BanyuwangiHBU Banjarmasin
A non-core asset at a Kalimantan logistics hub, tested for modern warehousing and offices.
View project: HBU BanjarmasinHBU Denpasar, Jalan Pulau Ambon
Strategic land in central Denpasar with simulations for shops, offices, and vertical housing.
View project: HBU Denpasar, Jalan Pulau AmbonRelated services
Other Services Often Used Together With HBU Studies
A feasibility study to test the project resulting from the HBU recommendationProperty market research to map demand and pricesCost Estimate (RAB) for investment estimationConstruction management once the concept is chosenBuilding audit to assess existing asset conditionWeb design for your business and company profile website
FAQ
Questions About HBU Consultants
Still have questions?
Ask our team directly.
What is Highest and Best Use (HBU)?
Highest and Best Use (HBU) is a real estate concept that determines the use of land or property that produces the most value: legally permissible, physically possible, financially feasible, and maximally productive. The result becomes the basis for decisions on development, sale, or use of the asset.
What is the purpose of an HBU study for landowners and asset owners?
An HBU study helps owners determine the most profitable building function before construction, for example offices, vertical housing, a hotel, retail, a warehouse, or mixed-use, so investment risk falls and asset value rises.
What are the four criteria of HBU analysis?
The four criteria tested in sequence are legally permissible, physically possible, financially feasible, and maximally productive.
What is the difference between HBU, a feasibility study, and a property appraisal?
HBU determines the best function of an asset. A feasibility study tests whether one project plan is viable technically, legally, and financially (NPV, IRR, payback period). A property appraisal calculates the asset's market value and often uses the HBU conclusion as its basis.
What properties can be studied with HBU?
Vacant land, office buildings, retail and shopping centers, industrial estates and warehouses, hotels, apartments, as well as non-core assets owned by state-owned and private companies across Indonesia.
How much does an HBU consultant cost?
Cost depends on the number and size of assets, location, depth of market analysis, field survey needs, and the completeness of your data. We provide a quotation after the initial brief, and the first consultation is free.
How long does an HBU study take?
Duration depends on asset complexity, analysis coverage, and how quickly the client provides data. We give a time estimate together with the quotation.
What data should I prepare for an HBU study?
Generally the certificate or ownership documents, land location and area, existing building condition, zoning or spatial planning information if available, and the owner's goals. We help fill data gaps through research and surveys.
Ready to Optimize Your Asset With an HBU Study?
Join the business owners and companies who trust JULIZAR for study preparation. Sorry, we do not take voice calls; please leave a message.
PT Julizar Konsultan Indonesia, Roseville SOHO & SUITE, Sunburst CBD, Jl. Kapten Soebijanto Djojohadikusumo No.8 Lot I, Suite S-1009, Lengkong Gudang, South Tangerang, Banten 15321Need Help?
Discuss your project with us now. Free initial consultation.
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