Do you know what goes behind creating a real estate project ?
No idea, Right?
Well, we will take you through the process of designing attractive projects as a real estate developer.
The start of a real estate project begins with an idea and then starts with the approval of layout. The process of approval of layout is quite a tedious task. Group of senior developers will look into the layouts, study the designs, and then take a call on approval. The developer handles each aspect of a project. He starts from property acquisition, design, zoning, and engineering, construction, funding, and leasing or sale of the property.
Real estate developers craft single-family homes, multi-family developments, and mixed-use developments. Sometimes, developers will develop a project to keep it as an investment or usually developers sell the project to an investor with an intention to make profits. In a nutshell, we can say that the process of real estate development controls the activities of handling project from beginning to end.
Introduction of Real Estate Development:
You need to study about the marketing conditions of real estate development and be prepared to deal with challenges and issues that occur throughout the development process of creating good real estate projects. You should contact different real estate professionals in the real estate market and understand their perceptions of handling real estate projects.
Real estate development includes a vast array of activities right from initial planning, construction to completion. When a project is executed well, real estate development becomes a success story. Most developers follow a systematic process with numerous common steps, from pre-purchase, concept stage to completion. Developers purchase land, develop projects, finance real estate deals, and orchestrate the process of project development.
Usually, a developer buys a tract of land, estimates the marketing plans for the project, develops the design and the building program, acquires financing and public approval, develops the structures, construction of the project, conducts promotion activities of the project, and finally sells the project by acquiring genuine leads through cold calling.
Developers come from different principles that include construction, lending, urban planning, architecture, among others. To know more about the real estate sector, you can take up a degree like “Master of Real Estate Development” or “Master of Science in Real Estate” that talks about the methodical aspects of the real estate sector.
To enter into the real estate sector, you need to assemble a team of professionals that address environmental, political, physical, private, and economic issues in terms of project development.
The process of real estate development inculcates the skills of many professionals like civil engineers, landscape architects, and site planners who look into the project design. You will also need market consultants to regulate the demand and the project’s economics.
The process of designing attractive properties is systematically broken down into the following steps:
- Idea Generation:
An idea needs to be analyzed by prospective developer in order to craft attractive projects. You can create an idea through drawing concepts or layouts that give a clear explanation about the initial stages of designing a project.
In order to get creative ideas, you need to discuss and present your points with senior experienced developers who have been through the process of designing properties. They are the right people who will guide you throughout the real estate development process.
- Refinement of Ideas:
The idea portrayed by you must be apt that suits the beginning process of project development. Your ideas must be genuine that can be considered for future developmental aspects. The refinement of ideas can be portrayed through improving the set ideas that can be taken forward for project execution. Your ideas must represent the quality of conceptualizing a project.
- Project Conception:
Once you select an idea, the project conception stage begins. The proposed project will undergo numerous systematic analysis. The main task of this stage is to prove that the project is feasible and profitable. You must undertake a feasibility analysis that helps you to investigate the negative and positive outcomes of a project.
- Pre-Purchase:
The Pre-Purchase stage looks into the technical aspects of project development. It is a stage that is applicable for purchasing a site. This stage looks into identifying a site that is suitable for developing a project.
In the pre-purchase stage, we try to answer the question about whether a particular project is commercially viable or not. We look to analyze the residential zonings, encumbrances, overlays, caveats, and services such as power and water. An analysis on whether the ideas can be taken forward or discarded due to the difference of opinion of senior experience staff will be looked upon.
- Pre-planning and Settling:
After the site is secured, we have successfully entered the agreement period. The key responsibilities in this stage include an architect who begins working on preliminary drawings and town planning submissions. He works with a broker to get the finance approvals ready for settlement.
- Town Planning:
After submission of drawings and town planning report to the council, you will further request for information. Once you receive the information, you must compile the requested information, make a couple of changes, and send it back to the council as soon as possible.
You must enlist some of the renowned town planners in the real estate sector who would help you in conceptualizing a project, drawing layout and sitemaps for understanding the structure of the project, and finally he will submit the essential information to the council for approval.
- Construction Documentation:
Construction Documentation is one of the critical stages of project development. Some of the things that must be considered for construction documentation and tender package include buildability, interior design and value management of the project.
You must find a qualified and skilled architect to design the structure of the project. You must work with engineers, have quality discussions with them about how to conceptualize and finally develop the project. You must make sure that the architect gets the approval from the developer of the project and then start with the construction of the project.
The tender package must include engineering, working drawings, energy, civil plans, landscaping plans, computations, the plan of subdivision, and the fittings, fixtures, and specifications.
- Pre-Construction Stage:
In this stage, you will have to look for a builder who has a good reputation in the real estate market by acquiring several quotes. You must enlist a project manager who would help you in handling the important activities involved in developing a project.
After enlisting a project manager, you must research the list of experienced builders and compare those builders with other skilled builders. Then you must select the appropriate builder who is talented and skilled in designing attractive projects.
- Construction Stage:
During construction, the estimated possession date can get delayed due to some technical issues or incomplete work schedule. The developer must be ready for any unexpected delays during the on-going construction work of a project.
The construction stage is usually divided into four stages:
➤ Select a Construction Manager:
Numerous activities are involved in the construction of a project. So, it is important to hire a construction manager who will help you in the process of project development. The Construction manager will help you in identifying the stages of construction and give you in-depth knowledge about how to conduct the activities of project development.
➤ Create a plan for construction and designing process of a project:
The construction manager will also help you in the design process of the project. The manager will ask you about the goals of real estate development. Once he analyzes the goals of the project, he will reach prospective architects from his network of construction professionals. The construction manager will create a project plan that explores the aspects of dependencies, expected timeframes, quality targets, necessary materials and equipment, risk management procedures and much more.
➤ Manage the Build-out process:
The build-out process includes the following steps:
(a) Conducting site examinations.
(b) Testing the authenticity of the soil.
(c) Identifying unexpected situations.
(d) Set up temporary storage facilities.
(e) Secure the site.
(f) Handling the plan and developing materials.
(g) Establish Safety Programs.
➤ Finalizing the Construction Project Process:
Once you have completed the build-out process, there are few important stages of construction development that need to be completed.
The process will involve the following requirements:
(a) Test the equipment and systems that ensure that everything is going according to plan.
(b) Train the personnel who will manage the construction process from operation to maintenance of any new systems.
(c) Complete any contractual obligations in order to finish the project.
(d) Terminate supplier contracts and much more.
- Completion of the Project:
During the completion stage of the project, the developer must look into all the important aspects that can hamper the developmental proceedings of the project. You would also want to look at whether you want to buy or sell the project.
To solve your concern, you can either go for the sales of the project through effective promotional activities or you can rent the project for a long time growth strategy.
To sum it up, real estate development is a tedious process that involves planning and execution. Many professionals and veteran realtors take part in the decision making process of a project.