What Is Real Estate Development?
Real Estate Development can refer to the profession, the process, or the resulting product of developing raw land or improving already developed properties.
Real Estate Development Process
Real estate development is a process through which real estate developers create or recreate the built environment. The process begins with identifying a real estate need not satisfied by existing property. If it looks like a concept pencils out, further investigation ensues to determine the feasibility of the development project. After this hurdle, more resources can be applied to design, obtaining approvals, and construction. The process continues with sales and fulfilling commitments to the project stakeholders.
Given the scope of the process, real estate development brings together a multitude of disciplines to accomplish the task of creating or improving the built environment. Some of these disciplines and professionals brought together by the real estate development process includes land use planners, architects, engineers, construction contractors, lawyers, consultants, salespersons and brokerage companies, financial institutions, and investment professionals.
Real Estate Development Projects
The physical result or product of the development process can also be referred to as a real estate development. A project under construction or recently completed building project such as a housing tract or office park are examples of real estate developments.
Real Estate Development Industry
Real estate development is an industry unto itself. By identifying needs that are not being served by existing real estate product, real estate development is an inherently entrepreneurial business. The skills and attributes necessary to identify an opportunity, manage the process, and ensure a viable end result are not possessed by everyone.
Real Estate Developers
Real estate developers have a higher tolerance to risk, perceptive sense of the marketplace, and the tenacity to see the real estate development process through to completion, or know when to walk away. Real estate developers must be able to manage dynamic environments and diverse groups of people and interests.