Everywhere we look there is property be it houses, shops, warehouses, schools, hotels or other spaces. All of these buildings started out as a vacant site which was developed by a property developer with an idea.
In this blogg we’ll explore what property development is and how it works and we will look at what it is that the property developer does and specifically look at what it is we do differently in UpSPACE.
Property development is the process of creating or developing buildings or land into a higher use value. It is a complex and sometimes risky process that takes in many different skill sets and disiplines.
It’s a multi-faceted business which can comprise any of the following:
· Purchasing land and building property for sale or lease on it;
· Constructing additional property on existing properties
· Renovating, extending or improving property for sale or lease;
· Converting property from one use type to another.
Property developers are the entrepreneurs who carry out real the property development and ultimately make the property creation and value add happen. There is a simple premise behind what a developer does; put quite simply:
A developer adds value to land or property.
By creating this additional value the developer can realise the profit on the process. This is one of the main aims in property development. The concept of developing property to its highest use value is essential to the property development and the property developer. This value add is what drives the majority of property development in the world today.
What attracts the majority of players to property development is the possibility of high returns and profits in the property development process. However, where there is high return there is likely to be high risks involved and property development is no exception. It can be very risky and complex and may not be for the faint hearted.
Absolutely and for sure property development is complex, slow and risky and if you ask anybody they will tell you so. Property development requires specialist skills and experience that allows one to reduce the risk to the lowest possible level, insuring the chances of success.
Often profit is the driving force behind property development, however it is not always the main force behind why property is developed. There can be many social and collective reasons or incentives behind why property is developed, it can be a part of creating robust communities or familial places and not just be solely for profit.
Most Property developers focus mostly on either on residential development or commercial development, although there many times often significant overlap between the two due to planning and locational reasons.