Real estate development , or property development , is a business process, covering activities ranging from remodeling and leasing of existing buildings to the purchase of raw land and the sale of developed land or packages to other people. Real estate developers are the people and companies that coordinate all these activities, turning ideas from paper into real estate. Real estate development differs from construction, although many developers also manage the construction process.
Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control, and manage the development process from start to finish. Developers usually take the biggest risk in making or remodeling real estate - and receive the greatest rewards. Typically, the developer buys a piece of land, determines the marketing of the property, develops the building program and design, obtains the necessary public approval and financing, builds the structure, and leases, manages, and ultimately sells it.
Sometimes property developers will only do part of the process. For example, some property resource developers and get approved plans and permits before selling property with plans and permits to builders at a premium price. Alternatively, developers who are also builders can purchase property with plans and permits in place so they do not have the risk of failing to get planning approval and can begin development on development soon.
Developers work with many different partners throughout each step of the process, including architects, city planners, engineers, surveyors, inspectors, contractors, attorneys, rental agencies, etc. In the context of Urban and State Planning in the United Kingdom, 'development' is defined in the Town and Country Planning Act 1990 s55.
Video Real estate development
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Many aspects of the real estate development process require a local or state license, such as acting as a real estate broker or joint sales agent. Real estate developers are not professional designations, no schools or associations recognize or protect such terms as trademarks. Some real estate developers, often involved in property marketing through traditional real estate channels, choose to join business associations such as SIOR.
Maps Real estate development
Path to enter the development field
There is no single path that automatically leads to success in real estate development. Developers come from various disciplines - construction, urban planning, lending, architecture, law and accounting, among others. The latest special program that provides the Master of Real Estate Development (MRED) degree is also available. The graduate program in real estate development is the most comprehensive education in the real estate industry. Other formal education includes Master of Science in Real Estate (MSRE), or an MBA.
Organizing for development
The development team can be unified in one of several ways. At one extreme, a large company may include many services, from architecture to engineering. At the other end of the spectrum, the development company may consist of one principal and some staff who hire or contract with other companies and professionals for each service as needed.
Assembling a professional team to address the environmental, economic, personal, physical and political issues inherent in complex development projects is essential. A developer's success depends on being able to coordinate and lead the completion of a series of interconnected activities efficiently and in a timely manner.
The development process requires many professional skills: architects, landscape architects, civil engineers, and site planners to handle project design; market consultants to determine the demand and the project economy; lawyers to handle government agreements and approvals; environmental consultants and ground engineers to analyze physical limitations and site environmental impacts; surveyors and title companies to provide a legal description of the property; and lenders to provide financing. The general contractor of this project hired subcontractors to realize the architectural plan.
Land development
Buying unused land for potential development is sometimes called speculative development .
Land sharing is the main mechanism by which societies are developed. Technically, the subdivision explains the legal and physical steps that developers must take to convert raw land into developed land. Subdivisions are an important part of the growth of the community, determining its appearance, its mix of land use, and its infrastructure, including roads, drainage systems, water, sewerage, and public utilities.
Land development can pose the greatest risk, but it can also be the most profitable technique because it depends on the public sector for approval and infrastructure and because it involves long-term investment periods without positive cash flow.
Once the subdivision is complete, the developer usually markets the land to a home builder or other end user, for such use as a warehouse or shopping center. However, the use of spatial intelligence tools reduces the risk of these developers by modeling the population trends and demographic creation of the types of customers created by a home builder or retailer who wants to round their new development.
See also
- Construction
- House construction
- Land consumption
- Land use
- Property investment calculator
- Redencent
- Urban sprawl
References
Source of the article : Wikipedia
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