Project Inception and Real Estate Development Services
Project Inception and Real Estate Development Services
The real estate development process is a complex series of steps.
It can take years for a project to progress from the initial idea through the planning, design and approval stages, and construction, to final completion and handover. This provides opportunities for unexpected obstacles or challenges to emerge.
Fortunately, these unexpected challenges can be mitigated if a real estate developer plans carefully to manage risk through the lifecycle of a development project. A well-executed development plan could turn an initial idea into a runaway success.
Real Estate Development is split into three broad stages
Stage 1
Pre Development
Stage 2
Construction
Stage 3
Post Development
The pre-development stage is essential. Without research and planning, construction, and operations upon completion will be compromised, negatively affecting value creation. Pre-development is likely to be one of the longest stages of the real estate development process.
During this stage the developer should research the marketplace and regulatory conditions to identify the potential target market as well as zoning and permit requirements. A detailed feasibility study should be prepared, establishing the unit mix, unit size, facilities and price points. Performance projections and sensitivity and scenario analyses will be prepared to determine whether the project returns meet set return requirements and the capital stack determined.
Increasingly developments today require the inclusion of a residential component for sale, often on an off-plan basis, to generate an additional source of project funding. Creation of the sales and marketing plan, unit pricing schedules, sales pace assumptions, let alone set-up of the in-house sales team and retaining third party agents to sell your development, requires skill, relationships and experience.
When operations are planned to be operated by a third party, the operator selection should be performed as early as possible to allow the operator to provide development input and ensure that prescribed operating standards are incorporated into the design and development early on.
The many different tasks that should be performed, the tools required to take a development from a dream to reality, and the stages in between, can be formidable. Significant knowledge and resources are required. Elevante Consulting, as your primary advisor, performs unbiased research and analyses, defines the development concept, performs the feasibility, sources funding on your behalf, acquires the necessary development approvals, and acts as your development representative during construction. We have the relationships, knowledge and experience to support you in converting your idea into reality.
