Property development can mean many different things to different people, and it can also mean something completely different to you. You may be just starting out in the property development business, such as engineering, design, or construction, or you may be a seasoned developer, but one thing is certain: you don’t know everything there is to know about the industry or the development process! Hearndon Construction is one of the authority sites on this topic.
I’ve met a lot of people over the last thirty years who have taught me a lot of different things about the industry, and every day I learn something new. I quit saying “I know that” after around twenty-five years because it took me that long to realise I didn’t know much at all. In a construction project, hundreds, if not thousands, of people are involved. How many consultants would you need to design and get your project approved by the local government? On your project, how many builders and subcontractors are you working with? How many people are needed to produce the construction supplies you’ll need for your project, and how many people are employed in the mining industry to extract the raw materials?
What may seem to be a small project contributes to jobs and economies all over the world, as well as profit growth all the way up the “food chain.” And if you’re a developer, you might benefit as well if your numbers and product are right.
The success of your project hinges on the quality of your product. To ensure that your product meets the needs of your target market, you must conduct market research. Then you must ensure that your product is placed in the appropriate location for your target market to purchase or lease it. Not to mention the fact that you must deliver the building at a reasonable rate so that your target market is willing to pay that amount.
As the developer, you must evaluate the risk of going through this phase, as well as the risk of the market shifting, for whatever reason, when you are developing the product. Risk minimization and mitigation should be considered at any possible point. There are choices that can only be made by the creator. Welcome to the world of real estate growth!