Property development is the process of renovating or building on a piece of land with the intention of selling or renting the resulting property. Most property developers typically purchase land in need of renovation, as well as any existing buildings on the site. They then develop a plan for improving the property, obtaining the necessary permits, and overseeing construction.
Once the work is completed, they may either sell the property or find tenants to lease it. In some cases, property developers may also manage the property after it has been sold or leased. According to Noel Martin in Carrickmacross, property development can be a complex and risky venture, but it can also be very profitable. Those who are interested in this field should have a strong understanding of the local real estate market and the construction industry. They should also be prepared to take on a significant amount of financial risk.
Property development stages
Following are some of the essential stages of property development:
Step 1 – Pre-purchase
The pre-purchase stage includes a number of important steps that must be taken in order to ensure a successful project.
● First, it is essential to carefully select the property that will be developed. This selection process should take into account a number of factors, such as the location of the property, its size and orientation, and potential for redevelopment.
● After selecting the property, it is important to conduct due diligence in order to verify that all necessary approvals and permits have been obtained.
● Finally, it is necessary to negotiate a purchase price with the seller that considers the anticipated costs of development.
Step 2 – Negotiating contracts and purchasing
When it comes to property development, there are a number of different stages that need to be completed to ensure a successful outcome.
● One of the most important stages is negotiating contracts. This involves working with a variety of different parties, such as agents, landlords, and developers, in order to agree on the terms of the deal.
● It is also important to have a thorough understanding of the local market to make sure that you are getting the best possible price for the property.
● Once the contracts have been negotiated, the next stage is purchasing the property. This includes putting down a deposit and completing all of the necessary paperwork. After the purchase has been made, the final stage is overseeing the development process. This includes working with architects and builders to bring your vision to life.
Step 3 – Town planning and development approval
During the town planning stage, developers work with local government planners to ensure that their proposed development complies with all relevant planning regulations. This includes ensuring that the development will not have a negative impact on the surrounding community. After completing the town planning process, developers must then submit a development application to the relevant authority for approval. This application must include detailed plans and drawings of the proposed development, as well as a comprehensive assessment of its potential impacts. Only once both the town planning and development approval stages are complete can construction begin on the new development.
Step 4 – Working drawing and documentation
The working drawings and documentation stage in property development includes a number of activities and tasks.
● The first is to develop a conceptual design for the project, which will be used to generate preliminary drawings and estimates.
● Next, the project team will prepare detailed plans and specifications for the construction of the project. These plans and specifications will be used by the contractor to obtain bids from sub-contractors and suppliers.
● Finally, the developer will submit all of the necessary paperwork to the local planning department for approval so that workers can start constructing the property.
Step 5 – Pre-construction
During the pre-construction stage of property development, developers must secure financing, obtain the necessary permits and approvals, and assemble the project team. Additionally, they must also conduct due diligence on the property, including environmental assessments and site investigations. After completing these tasks, developers can begin to develop a detailed construction schedule and budget. By taking the time to properly plan and prepare during the pre-construction stage, developers can increase their chances of successfully delivering a quality property on time and on budget.
Step 6 – Construction
The construction stage in property development is when the developer assembles the project team and initiates construction activity. The key members of the project team include the architect, structural engineer, MEP engineer, general contractor, and sub-contractors. The role of the project team is to design and build the project according to the approved plans and specifications.
Construction activity includes excavating the site, constructing the foundation, erecting the superstructure, installing MEP systems, and finishing the interior and exterior of the building. Depending on the size and scope of the project, the construction stage can take anywhere from a few months to several years to complete. The construction stage is typically overseen by a professional contractor, who is responsible for coordinating all of the different trades and ensuring that the project is completed on time.
Step 7 – Post-construction
The post-construction stage generally begins with a final inspection of the property to ensure that all work has been completed to the required standards. It is at this point that the company must decide whether to sell or rent the property. There are several factors to consider when making this decision, including the projected return on investment, the local market conditions, and the goals of the company. In some cases, it may make sense to sell the property immediately, while in other cases it may be more advantageous to wait and see how the market develops. Ultimately, the decision of whether to sell or rent should be made based on a careful analysis of all of the available information.
Noel Martin in Carrickmacross owns Dunkeel development, a successful property development firm in Ireland, so he knows what it takes to develop land properly. As you can see, there are a lot of things to think about when it comes to property development. By understanding the different types of buyers and what they want, you can tailor your project to fit their needs and increase your chances of success.