Role of a Property Developer
A property developer undertakes activities aimed at developing residential or commercial property. Property developers have to follow various regulations related to property development. The development works include the conversion of an old manufacturing unit or an old warehouse into a residential or commercial property. A property developer may also involve the construction of a new building on a vacant lot or may engage in the construction of a single store or may include other additional tasks like the beautification of the site, laying a proper drainage system, equipping the building with utilities etc.
Residential Property Development
Residential property development, or property development as it is popularly called, is a business activity, encompassing various activities ranging from the renovation and/or re-sale of existing residential buildings to the acquisition of raw material and the resale of newly constructed residential buildings. Property development involves the financing of the project, and therefore it requires a sound credit history and sound financial management skills. Residential property development is one of the fast-growing fields in property research and development. Some of the primary reasons for the property development boom are the low-interest rates, availability of finance, and low start-up costs.
Residential property development projects are generally large and involve a considerable amount of capital. The primary aim of the property development company is to convert the currently vacant land into productive and income-generating properties. Developers usually undertake the projects on behalf of corporate clients and in most cases they will also act as finance agents. In most cases, residential property development projects are started on lands that are free from any kind of legal obligations like title or mortgage. Private developers usually commence their projects on lands that are owned by family members or relatives.
The property developer can either be a private individual or a company. Several property developers are operating through the internet who operate independently of any other development company. A property developer can choose to build housing developments that cater to the middle class or can choose to build luxurious projects that cater to the elite. Regardless of the kind of development a property developer decides to develop, he has to follow the local council’s development guidelines to ensure compliance with the planning laws of the region in which he intends to develop.
One of the roles of property development professionals is to draft a property spec map. The property spec map is a comprehensive representation of the property development process. The property spec map will include the layout of the property, the physical condition of the property, the future use of the property, the future traffic flow of the property, the proximity of major public amenities to the property, and any other information that will prove helpful in the property developer’s endeavour to achieve his desired profit. Property developers usually hire consultants and property strategists for a wide range of purposes including feasibility studies, cost estimates, technical and structural drawings, regulatory consultation, contract negotiations, environmental impact reports and feasibility studies.
The property consultants will help the property developer to identify the investment property markets. Investment property markets are the markets in which a property developer expects to make the maximum profit from his development project. To determine the investment property markets, property consultants will conduct a study of the property market trends. They will also analyze the supply and demand conditions in the property markets. The property consultant can help the property developer to develop a feasible strategy based on the property market analysis.
Property development projects will involve various stages like construction, remodelling, and operation and maintenance of the commercial property. The property developers will therefore have to be extremely knowledgeable about every stage of the property development project. They should also have sound knowledge about the commercial building regulations of the respective region. This is very important because property developers have to follow the stipulated regulations of the local government regarding the construction, remodelling, and operation and maintenance of commercial buildings.
The role of the town planner is essential during the development project. The town planner is responsible for ensuring that the commercial property developer has allotted the appropriate amount of land for the development project. In case the developer does not use all the land allotted the town planner has to check the balance of the budget and then provide the developer with an amount that will ensure completion of the commercial building and then send it for approval to the local council. The town planner also ensures that the developer uses the right types of buildings in the designated area.