The Role Of Real Estate Developers In Shaping The Real Estate Industry
The land is the basic requirement for every living being. It is the prerequisite for any of the further development that people have planned. The modern arrangement has made the people and organizations own land and deal with their use. But not everyone is known about the need of land from one person with respect to another. Real Estate is considered as the property which can be constituted by any piece of land or building, it can be above the land, on the plains, mountains or even underwater. The subject to the use of this real estate is up to the owners.
What are the various types of real estate?
Considering the scenario of today’s world, real estate isn’t just limited to the lands but has evolved with the buildings, houses, mansions and other types of places within. The type of real estate varies; there are four types of real estate:
- Residential Real Estate: This includes the construction as well as the sale of previously built homes. The variety of houses is definite ranging from co-ops, high-value houses, vacation homes, decker homes and more. The residential property developer plays a major part here.
- Commercial Real Estate: This would constitute all of the commercial areas like malls, medical buildings, educational institutions, hotels, or more. The apartments are also included under this many times as they are built with the purpose of earning money.
- Industrial Real Estate: As the name suggests this will include the buildings serving the purpose of industrialization or manufacturing. The motive of buildings can be with research, storage, distribution or any other industry activity.
- Land: It is the basic block of all the buildings; this will include the empty lands, farms and the places available for development.
How does the industry work?
Like every other industry, the real estate industry has some of the basic principles to work. Real Estate is also referred to as the production, purchase, and sale of the real estate. There will always be residential property developer, broker, builder, and agents to play their parts as the various pillars of the industry. Real Estate involves some of the factors to develop the field. These are:
- Construction of new buildings is an important aspect of the real estate industry. This is more like the production of goods in industry.
- New house building is another development factor. This includes the construction of commercial houses. This could be a single family house or even town housing scheme.
- Real Estate agents are the guiding agencies to assist people to buy or sell houses. It will include all four types of properties.
- There are real estate developers as well who play an important role in the real estate industry. They supervise all of the procedures in the sale and purchase of the real estate.
What is meant by real estate development?
Development is the principle concept of every industry. Real Estate development is the process that includes the renovation of existing buildings, the purchase of new land, and the sale of the constructed land. There will be concerning bodies to govern these activities. The real estate development companies hold the task of managing these activities. Construction of real estate is quite different from the development. However, construction is also managed by various real estate developers as well.
What are the real estate developers?
Since the real estate industry is quite large and still expanding it is not possible to manage the things without a professional. There are people like the marketer and the broker involved in the field. Similarly, the real estate developer has the responsibility to develop newer possibilities in the real estate industry. The role of the real estate developer includes the following:
- Make the feasibility studies about the real estate properties, their requirement, and customer growth.
- Putting the strategies to grow the part in each of the areas.
- He will be the person to overlook the project until it is completed.
- The real estate developers will also supervise the contractors and resolve the problems with minimum expenditures.
What is meant by property development?
Property development is the process of converting the buildings or lands of relatively lower value to better use and value. It includes the following tasks within itself:
- Purchase of new land and developing property and buildings over it.
- Renovation or improving the old acquired property.
- Putting one property from its present use to another.
A real estate developer will carry out all these tasks and manage all the activities involved with it. The main point for development is to add value to the real estate and extracting profit from the obtained value. The residential property developer will be involved with the management and development of residential properties.
What will the development team consist of?
The real estate developer will have the development which he is supposed to manage in order to develop the real estate. The process of real estate development is not easy and therefore requires the right team of people. The basic requirement of the team will include:
- A consultant who can advise on the decisions to be taken and plan the development
- An architect to design the whole plan.
- Quantity surveyor to estimate the cost of development and minimize it.
- Project manager to manage the development project
- Contractors to build the proposed project.
- Accountant to manage and raise finances.
- Solicitor to manage the sale of the developed real estate
- The real estate developers to manage and head all these people and look if the development is carried out effectively.
Real estate development is done to earn profits from development activities. The developer may be acting as the replacement of some roles like site finder and agent to sell the planned development, however, his major work is for organizing the development within the whole process.
The developers are not the professionals with the knowledge of the tasks carried by the team but are known to the basics of their work. The part of real-estate developers goes with the planning, and organization of the overall development.