The field of real estate development involves the reconfiguring of the built environment to meet varying social needs. Development involves the construction and finishing of residential and commercial buildings, and also the construction of roads, sewer systems, and offices. In addition, real estate development is an important source of job creation.
Logic order in real estate development
Real estate development is a process that has several stages. It is important to follow the order in which these stages are completed. This will help you avoid making mistakes or losing money. Without the right order, you may end up making the wrong decisions. You need to be clear about what the next step is before you proceed.
Private sector vs public sector
There are a number of advantages to working with the private sector, as opposed to the public sector, when it comes to real estate development. The private sector is usually less bureaucratic, and can maximise density without having to worry about complying with public procurement rules. As private developers are not subject to public procurement rules, their decisions can be made more quickly. In addition, they are not bound by the OJEU rules that apply to public developers.
The public sector, on the other hand, is likely to seek certainty during construction, while the developer would prefer flexibility to adjust the project if market conditions change. The developer will typically argue that he is incentivized to maximize activity on the property, so he needs flexibility. The public sector is likely to be motivated by profit maximization.
Supply side factors affecting real estate development
There Bill Bhangal are a variety of supply side factors that affect the development of real estate. The size of a minimum lot is an important consideration, as it can negatively impact the ability to build new residential properties. Minimum lot sizes in urban areas tend to be large, and the maximum lot size in suburban areas tends to be smaller. Furthermore, as a rule of thumb, the more tall a building is, the higher its per-square-foot cost. As a result, the cost of building up is much higher than the cost of building low-rise dwellings.
Another factor that affects real estate development is the availability of affordable housing. Despite efforts to create a more affordable housing market, a lack of land is a major challenge. Land is not cheap in India, and unscrupulous developers often outbid developers who aim to create affordable homes. This has resulted in the overvaluation of property. The Housing for All by 2022 program is trying to remedy this problem by stabilizing the prices of overvalued properties.
Valuation expert’s role in real estate development
The role of a valuation expert in real estate development is to help clients determine the real market value of their property. This is the amount that an informed buyer or seller would be willing to pay for the property. The valuation expert will use different methods to arrive at this value. For example, if a developer wants to sell a building at a higher price than what it’s worth, a valuation expert can help.
Professional organizations such as the National Association of REALTORS encourage and recognize independent, credible valuations. In fact, discriminatory appraisals have led to the release of the Biden Administration’s PAVE (Program to Address Violation of Appraisals in the Real Estate Industry). Other causes of appraiser shortages could include stringent educational requirements, overregulation, and a lack of job market.