What does a property developer actually do? Property developers research the property needs of geographical regions to determine the supply and demand for specific product types. They analyze the current market values and the anticipated future values of the area. They take into consideration existing influences, as well as those that may be of significance in the future as they determine whether or not to proceed with developments in the region.
Most property developers focus their attention on specific geographic markets and sub-markets where they have established a network of connections, both political and professional, that they can draw upon to execute their projects successfully. They generally specialize in one or more product type, such as vacant land, single or multi-family residential, hospitality, office, retail, storage, industrial, medical facilities, etc. although some are purely opportunistic and will look at any project anywhere.
Property developers work with local governments, planning departments, building departments, councilors, etc., when embarking on new projects. They bring together teams of investors, lenders, architects, engineers, marketers, real estate agents, public relations consultants and a wide variety of other professionals as they conceptualize, develop, construct, market and sell their projects.
What distinguishes a successful property developer? Successful property developers come in all shapes and sizes, from all walks of life and backgrounds imaginable. Every one of them has a unique, individual personality and set of skills that has taken them to the top of their profession. It is rare to find a successful developer that does not have a strong sense of self and abundant confidence.
The successful property developer is a visionary. Someone who looks at the options of vacant site development, the demolition of existing buildings and construction of new ones, or the re-imagination of existing properties. These experienced professionals conceptualize potential opportunities, evaluate economic viability and marketability, then assemble and lead teams to see those projects deemed viable, through from inception to completion.
The successful property developer fully understands the development process from conceptualization through to completion, understanding the role of each contributor to the process. Prior to starting a new project, they identify and establish their financial goals and expectations as well as their societal and community goals. Community and social goals include, design aesthetics, building materials, amenities, landscaping, construction impact mitigation, community contributions etc.
Having the ability to analyze, plan, manage and execute, with an understanding of the risks involved is a key component of successful property development. Prior to commencement of any development project a developer must have read the market, understanding the risks involved and developed appropriate risk mitigation strategies.
Successful professional property developers realize that the real profits are made when a property is first purchased. Combining their local market knowledge and negotiation skills they endeavor to negotiate realistic purchase pricing from which a well-executed project can deliver above average returns.
Sounds simple, doesn’t it?
Creative ways of promoting the growth of urban villages, clustering, and increased density needs to be made a priority. If not, economic growth will seize up and liveability will decline.
In the latest “Quality of Living” city-ranking list published by global investment consultant Mercer, Los Angeles dropped to number 58 in the rankings while Melbourne retained its number 1 status.