Back تطوير عقاري Arabic Daşınmaz əmlakın inkişafı Azerbaijani Дэвелаперская дзейнасць Byelorussian Забудова BE-X-OLD ভূসম্পত্তি উন্নয়ন Bengali/Bangla Kinnisvaraarendus Estonian توسعه املاک و مستغلات Persian Pengembangan lahan yasan ID დეველოპმენტი (უძრავი ქონება) Georgian 부동산 개발업자 Korean

Real estate development

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.
Advertisement for mobile homes on the Florida Keys, June 1973

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.

Developers buy land, finance real estate deals, build or have builders build projects, develop projects in joint ventures, and create, imagine, control, and orchestrate the process of development from 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 who 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. The financial risks of real estate development and real estate investing differ due to leverage effects.[3]

Supply and demand curves with economic equilibrium of price and quantity apply to real estate development

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.

  1. ^ 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.
  2. ^ New York Times, March 16, 1963, "Personality Boom is Loud for Louis Lesser"
  3. ^ Geltner, David, Anil Kumar, and Alex M. Van de Minne. "Riskiness of real estate development: A perspective from urban economics and option value theory." Real Estate Economics 48.2 (2020): 406-445.

Developed by StudentB