Real Estate Development - the possibility of «internal development»

03.12.2010 12:57
Articles about real estate | Real Estate Development - the possibility of «internal development» Modern urban planning is no longer limited to skyscrapers, business and shopping centers, multi-level crossings and highways. The latest achievements in construction technologies successfully implemented in the mega-plants indoor winter sports resort in the middle of hot desert, mnogogektarnym natural reservoirs under the plastic roof, wonderful area of tropical forest with man-made landscape under a roof or a whole archipelago of artificial islands in the fabulous water surface of warm seas.

Engineering, science and advanced technology provide an embodiment of the boldest architectural and engineering ideas, but the commercial success of implemented development projects achieved only when the successful marketing of the concept of investment and construction project, and careful project management.

Related article: The crisis has created a new format of residential complexes

Virtually all the most interesting and successful architectural premieres are unique and functional. Erected objects attract style, unique beauty, utilitarian usefulness and convenience, safety of use for consumers, as well as engineering excellence and adaptability in use. Working formula: "the use, strength, beauty."

In the context of the urban area of the capital metropolis - the city of Kiev, it is important to determine what, is typical of Kiev, the positive features and can be useful to develop and which are undesirable factors can be compensated. Vision of the possible development of the city, the systems development of the territory, usually takes the form of a master plan. Working with such a document requires highly skilled and is to perform the formal procedures: the territory of the inventory (data collection, fixation and ordering information), analysis of current status, forecasting trends identified, correction of established and offsetting negative trends or changing the concept of settlement and validation of a new master plan of the city. To succeed, the developer is important to have a clear understanding of the conditions of the city, its dynamics, the boundaries of how and why growing cities and suburbs.

For urban development entities (development) is actually associated with the development of the territory and property or the environment. Reclamation of areas of technological impact to the state of the natural landscape - as a development area in the direction of improving the environment.

Understanding the quality of life in urban environments are extremely mobile and interconnected with the natural and climatic conditions, dislocation, architectural and technological level of urban facilities, the state of civil society, science, technology and overall culture of the population. Changes in tax laws, land and civil codes, terms and conditions, funding and regulation - all of this the developer must promptly consider in your project. To be successful the developer must understand not only how you can implement a successful real estate development project, but the ability to foresee its consequences for the surrounding areas and cities.

That is why development - a very risky area of investment. Duration of Business Objects projects of development in a competitive environment require particularly careful approach to the development and definition of marketing concept development project. If the project turns out to be flawed or poorly thought out, will incur losses not only developers and investors, but the whole society. Real Estate Development - the art of increasing the value of the property by the risk management of development. Manage developer process - is, first of all, common sense, taking into account the importance of various sources of funding and long-term evaluation of the possible dislocation of the property in different parts of the city.

Development is usually defined five main types of property - land, buildings, retail trade (retail and entertainment), as well as housing, office and industrial buildings. Development actually creates a real cultural impact on society: well-designed, comfortable and convenient for the life of the city with cobbled streets, bridges and interchanges, functional buildings, and just good houses, which is characteristic and essential feature of civilized society.

Almost from the start of project construction, development project starts to become obsolete due to the fact that during the planning and surveying, architectural design and site preparation for construction, there is a new experience, new knowledge, new materials and new ideas. Therefore, from the soundly project waiting margin of safety "for growth" provided opportunities for "internal development, provision of compensation possible negatives of urban development and mobility, in the case of the need to change specialization (special purpose real estate). But all of this - more money and time.

The developer usually has to find a balance between the tastes and expectations of potential consumers, the requirements of government and regulatory authorities, in particular, the requirements regarding environmental protection, historical and cultural heritage, members of the territorial communities and their own business interests, as well as construction and technology requirements. Building a more comfortable life and settlement activities can be carried out exclusively by highly qualified developers who are able to collaborate effectively with professionals in real estate, government officials and representatives of the population.

Beautiful is not always durable and lasting is not always useful and convenient. Modern investment strategy determines the ratio of these indicators of financial system indicators, and the interest of potential investors in real estate property through a system of mutual financial and legal obligations which, for obvious reasons, must be accurately and on time to perform.

Result of successful development activities is expected financial results of the investment strategy for the implementation of architectural and construction project of the property, which, after commissioning, will begin its new life - now as another investment project business. That once again emphasizes the singularity of a development project, which should always be focused on the consumer - as a potential customer or potential customers for a comfortable living environment, work, places for shopping or recreation, study, treatment, communication, and the like, but in any case - " functional environment. "

Development activities - not for amateurs. Noble (and in case of success - revenues) problem raising more convenient and safe houses for residents of towns and villages can be solved only by highly qualified developers. Modern business environment has become much more complicated than it was ten or fifteen years ago. Political, environmental and financial eekonomicheskie conditions change almost faster than the market itself. For successful implementation of development projects should be well guided in matters of architecture and urban planning, professional understanding of the features of construction, legislation and procedures for obtaining initial permits or legal documents. It is imperative to be aware of state and municipal finances, intricacies of the investment process as well as own standard for real estate professionals skills in finance, marketing and property management. Increase public interest in the development of cities and the surrounding area gives reason to believe that the demand for skilled developers will be felt all the time. Therefore, the success of the developer must not only perfect preparation, but also the ongoing work on improving their own skills to understand the dynamic processes of the urban environment and the ability to anticipate project risks and possible consequences of its impact on the surrounding territory and settlements. Developers manage the risks, aiming to minimize risks at an early stage, seeking to ensure that the risks justified the initial investment for future high probability of success.

Political, socio-economic, financial, organizational and legal conditions of the modern real estate market perhaps the worst since the Great Depression. The collapse of the largest savings and loan institutions in developed countries, underdeveloped domestic stock market, the lack of mortgage institutions and the institutionalization of the investment process in the country against the backdrop of overall decline of many traditional sources of financing for development projects, have provoked the crisis in the industry of development. In many ways of building and production facility in the country is one of the lowest points of the long-term economic cycle. Maybe so now comes the best time to enter the development market of well-trained professionals, practicing the basic principles of development and market relations, able to avoid the numerous obstacles that increase costs without bringing commensurate benefits to these costs.
Ada Dzvonik, International Institute of Business
Director of the School of National Vocational Qualifications

Content tags: Development
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