Real estate development, or property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others. Real estate developers are the people and companies who coordinate all of these activities, converting ideas from paper to real property.[1] Real estate development is different from construction or housebuilding, although many developers also manage the construction process or engage in housebuilding.
In the Netherlands, virtually all housing is developed and built through property developers, including development in upmarket segments.
Developers buy land, finance real estate deals, build or have builders build projects, develop projects in joint venture, create, imagine, control, and orchestrate the process of development from the beginning to end.[2] Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structures, and rent out, manage, and ultimately sell it.[1]
Sometimes property developers will only undertake part of the process. For example, some developers source a property and get the plans and permits approved before selling the property with the plans and permits to a builder at a premium price. Alternatively, a developer that is also a builder may purchase a property with the plans and permits in place so that they do not have the risk of failing to obtain planning approval and can start construction on the development immediately.
Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, lawyers, leasing agents, etc. In the Town and Country Planning context in the United Kingdom, 'development' is defined in the Town and Country Planning Act 1990 s55.
A development team can be put together in one of several ways. At one extreme, a large company might include many services, from architecture to engineering. At the other end of the spectrum, a development company might consist of one principal and a few staff who hire or contract with other companies and professionals for each service as needed.
Assembling a team of professionals to address the environmental, economic, private, physical and political issues inherent in a complex development project is critical. A developer's success depends on the ability to coordinate and lead the completion of a series of interrelated activities efficiently and at the appropriate time.[3]
Purchasing unused land for a potential development is sometimes called speculative development.
Subdivision of land is the principal mechanism by which communities are developed. Technically, subdivision describes the legal and physical steps a developer must take to convert raw land into developed land. Subdivision is a vital part of a community's growth, determining its appearance, the mix of its land uses, and its infrastructure, including roads, drainage systems, water, sewerage, and public utilities.
Land development can pose the most risk, but can also be the most profitable technique as it is dependent on the public sector for approvals and infrastructure and because it involves a long investment period with no positive cash flow.
After subdivision is complete, the developer usually markets the land to a home builder or other end user, for such uses as a warehouse or shopping center. In any case, use of spatial intelligence tools mitigate the risk of these developers by modeling the population trends and demographic make-up of the sort of customers a home builder or retailer would like to have surrounding their new development.[4]
^ abFrej, Anne B; Peiser, Richard B. (2003). Professional Real Estate Development: The ULI Guide to the Business (2 ed.). Urban Land Institute. p. 3. ISBN0874208947. OCLC 778267123.
^New York Times, March 16, 1963, "Personality Boom is Loud for Louis Lesser"
^"Article: What does a property developer do? Sept 2019". from the original on 2020-08-08. Retrieved 2020-04-15.
^"What is a Lady Bird Deed". from the original on 2020-09-27. Retrieved 2020-04-18. Saturday, April 18, 2020
April 15, 2023
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Real estate development or property development is a business process encompassing activities that range from the renovation and re lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others Real estate developers are the people and companies who coordinate all of these activities converting ideas from paper to real property 1 Real estate development is different from construction or housebuilding although many developers also manage the construction process or engage in housebuilding The Solidere development of the Beirut seafront and harbor In the Netherlands virtually all housing is developed and built through property developers including development in upmarket segments Developers buy land finance real estate deals build or have builders build projects develop projects in joint venture create imagine control and orchestrate the process of development from the beginning to end 2 Developers usually take the greatest risk in the creation or renovation of real estate and receive the greatest rewards Typically developers purchase a tract of land determine the marketing of the property develop the building program and design obtain the necessary public approval and financing build the structures and rent out manage and ultimately sell it 1 Sometimes property developers will only undertake part of the process For example some developers source a property and get the plans and permits approved before selling the property with the plans and permits to a builder at a premium price Alternatively a developer that is also a builder may purchase a property with the plans and permits in place so that they do not have the risk of failing to obtain planning approval and can start construction on the development immediately Developers work with many different counterparts along each step of this process including architects city planners engineers surveyors inspectors contractors lawyers leasing agents etc In the Town and Country Planning context in the United Kingdom development is defined in the Town and Country Planning Act 1990 s55 Contents 1 Organizing for development 2 Land development 3 See also 4 ReferencesOrganizing for development EditA development team can be put together in one of several ways At one extreme a large company might include many services from architecture to engineering At the other end of the spectrum a development company might consist of one principal and a few staff who hire or contract with other companies and professionals for each service as needed Assembling a team of professionals to address the environmental economic private physical and political issues inherent in a complex development project is critical A developer s success depends on the ability to coordinate and lead the completion of a series of interrelated activities efficiently and at the appropriate time 3 Development process requires skills of many professionals architects landscape architects civil engineers and site planners to address project design market consultants to determine demand and a project s economics attorneys to handle agreements and government approvals environmental consultants and soils engineers to analyze a site s physical limitations and environmental impacts surveyors and title companies to provide legal descriptions of a property and lenders to provide financing The general contractor of the project hires subcontractors to put the architectural plans into action Land development EditFurther information Land development Purchasing unused land for a potential development is sometimes called speculative development Subdivision of land is the principal mechanism by which communities are developed Technically subdivision describes the legal and physical steps a developer must take to convert raw land into developed land Subdivision is a vital part of a community s growth determining its appearance the mix of its land uses and its infrastructure including roads drainage systems water sewerage and public utilities Land development can pose the most risk but can also be the most profitable technique as it is dependent on the public sector for approvals and infrastructure and because it involves a long investment period with no positive cash flow After subdivision is complete the developer usually markets the land to a home builder or other end user for such uses as a warehouse or shopping center In any case use of spatial intelligence tools mitigate the risk of these developers by modeling the population trends and demographic make up of the sort of customers a home builder or retailer would like to have surrounding their new development 4 See also EditBrownfield regulation and development Gentrification Land consumption Property investment calculator Real estate bubble Real estate business Shared ranch Urban sprawlReferences Edit a b Frej Anne B Peiser Richard B 2003 Professional Real Estate Development The ULI Guide to the Business 2 ed Urban Land Institute p 3 ISBN 0874208947 OCLC 778267123 New York Times March 16 1963 Personality Boom is Loud for Louis Lesser Article What does a property developer do Sept 2019 Archived from the original on 2020 08 08 Retrieved 2020 04 15 What is a Lady Bird Deed Archived from the original on 2020 09 27 Retrieved 2020 04 18 Saturday April 18 2020 Retrieved from https en wikipedia org w index php title Real estate development amp oldid 1148614800, wikipedia, wiki, book, books, library,
