How does property development work?
Real estate development, also called property development, typically involves acquiring land, obtaining planning approvals, constructing buildings or infrastructure, and then selling or renting the developed property.
Property development is everywhere. This industry built homes, offices, hotels, and more. Property developers shape our reality in our homes, workplaces, or leisure spaces.
How property development works
Here is the overview of how real estate development works -
Land Acquisition
Property developers typically begin by identifying a suitable site for development and then negotiating to purchase or lease the land.
Feasibility Studies
Before proceeding with the development, the developer will conduct feasibility studies to determine the project’s viability.
This may involve evaluating the market demand for the type of property being developed, analyzing construction costs, and assessing potential risks and challenges.
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Planning Approvals
Once the feasibility study is complete, the developer will need to obtain planning approvals from the local council or state government.
This may involve submitting a development application, providing detailed plans and drawings, and consulting with relevant stakeholders such as neighbours and community groups.
Design and Construction
Once planning approvals are obtained, the developer will engage architects and other professionals to design the building and infrastructure and contractors to carry out the construction work.
During the construction phase, the developer will typically monitor progress, manage the project budget and oversee any necessary modifications to the design.
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Marketing and Sales
Once construction is complete, the developer will market the property and arrange for its sale or rental.
This may involve working with real estate agents, advertising the property online, and hosting open inspections for prospective buyers or tenants.
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Post-Development
After the property is sold or leased, the developer may provide ongoing maintenance and management services to ensure the property is well-maintained and any issues are promptly addressed.
It’s important to note that property development regulations and processes can vary depending on the state or territory in Australia.
Developers must comply with local laws and regulations related to environmental impact, building codes, and safety standards.
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