PROPERTY DEVELOPMENT PROCESS

PROPERTY DEVELOPMENT PROCESS

The property  development process (real estate development process) is a complex, time-consuming, capital intensive, multi-disciplinary, externality-generating, public-private endeavor. Unfortunately, the conceptual models used to describe this process are usually very simple.

Just as planning theoretically defined it as a rational decision making process in this vein, the development process can be said to possess an inherent topic Rathliff (1978) in his own opinion that development process is similar to any other industry or manufacturing process where a particular commodity is provide in response to a given demand, property or real property development include industry supplies the building fabric for given environment within which various social and economic activities, society are performed and in so doing observe and measure the place at which addition or alternative should be made to the total stock.

The following are the stages involved in property  development process:
1. Site Identification: the first stage is the site identification and the aim must march the objectives of a particular real property development demand and supply of available land. The site for development could be already developed as well as bare site. There are legal constraints associated with this stage. There are legal constraints, competition constraints, planning permission constraints.

2. Choice of professional team: after site identification stage, the next stage will be the selection of professional team who are involved in the process construction during development, such professional like quantity surveyors, architects, structural engineering, and the building etc.

3. Preliminary Appraisal: the third stage in this discovered out of a number alternative site present for selection, it is necessary to analyze the inability of investment contained therein. This is based on the prevailing plan rate in such area. Having examined current rate of vacancy with the sectors concerned and the number and scheme under construction prevailing planning policy. Etc.

4. An outline programmed: if the preliminary proven positive, next stage is the stage of outline of programmed, which can be drawn up. This will consider the possible timing for the project, the resources in terms of finance and the appropriate management structure for the operation.

5. Detailed Investment: the fifth stage in the development process is that detailed investigation of various parameters of development whether it’s legal, social, economic and physical development. The physical parameters will look at the topography of the area whether it is hilling, rocky, swampy area to be leveled up. Legal parameter involves merging of interest by negotiation. If there is need while social cost and benefit that such development could cause the inhabitants.

6. Financial Appraisal: the next stage is financial appraisal. The method would be cash flow analysis which will show the viability of the project.