Many real estate promotion companies want to be approved as real estate promoters, but they believe that it is difficult to obtain a license for the best real estate development process company. As a result, they frequently resort to companies and offices that offer the qualification of real estate promoters, such as Alive Group, the best site specializing in real estate development, working with advanced plans that are unparalleled.
As a result, in this article we will discuss everything related to what is real estate development and the steps of the real estate development process? How do you become a licensed and experienced real estate promoter?
What is the real estate development process?
A real estate development process is a type of business that includes everything from buying undeveloped land to developing it and then selling it to other people or renting it out.
The people and businesses that organize all of these processes and convert concepts from paper into real estate are known as real estate developers.
You should also be aware that the idea behind and the stages involved in the real estate development process are different from those in construction.
Developers buy land, finance real estate transactions, build projects themselves or give builders permission to do so, and plan, conceptualize, oversee, and coordinate the entire development process.
When building or renovating real estate, developers typically assume the majority of the financial risk because they typically purchase a piece of land, decide how to market the property, and are in charge of designing and developing the construction programme, securing the necessary funding and public approval, as well as managing and eventually selling the building.
Steps in the real estate development process
The real estate development process goes through many stages, and it is impossible to overlook one stage of the process because all stages are linked to each other, and if this is done, it results in the development not reaching the desired goal.
Market research and analysis process
In order to understand the analysis data and turn it into useful information that the real estate developer can rely on as a starting point for developing the desired property, the first step in the real estate development process is the process of researching the real estate market and analyzing the results that were issued through the research process.
The developer first conducts preliminary financial studies to ensure the feasibility of the project, and then proceeds to the second stage, where he crystallizes the idea, selects the site, conducts preliminary financial studies, and creates preliminary designs with the help of specialized offices. . Finally, in the third phase, the developer prepares market studies, final financial feasibility studies, and designs that allow him to apply for the required licenses for the project.
Identify the area for development
The real estate developer or the organization in charge of the development depends on data from the real estate market and also on the research process it carried out prior to this stage while looking for the right location.
For a real estate project, there are a number of things to consider, including:
- properties’ sizes, population changes.
- population patterns around infrastructure.
- Competitors (and their performance) (and their performance).
- Tenants nearby (and their sales data).
Get the property (the most important step in the real estate development process)
This step entails obtaining all the legal authorizations and permits necessary to approve the project’s concept before moving on to the stage of property planning and design.
Planning and designing properties
When the project is given the go-ahead to begin implementation, the next step is to plan and design how the real estate will look. In order to start making all the necessary drawings and measurements of the real estate so that a model can be developed for it to replicate reality, this step necessitates the presence of a work team made up of architects or contracting with a real estate planning and design firm.
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Duties that a real estate developer must perform
As the main player in the real estate development process, the real estate developer performs a number of important tasks, including the following:
- Searching for excellent investment opportunities for real estate development
- Determine a suitable piece of land to implement the project on.
- Buying land and working with real estate owners to develop it or even build and restore houses
- Choosing a legal, engineering, consulting and architectural team.
- Preparing all legal papers and documents related to the project.
- Obtain funding from external sources or sponsor the entire project. Moreover, the project can be offered for sale off plan.
- Market assessment and feasibility analysis for the project.
- Marketing and promotion of the project.