Land development refers to altering the landscape in any number of ways like changing landforms from a natural or semi-natural state for a purpose such as housing or subdividing real estate into lots, typically for the purpose of building homes.
Converting Ideas into Real Property
Real estate development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property.
Real estate development is different from construction, although many developers also construct. Purchasing unused land for a potential development is sometimes called speculative development.
In general, land development is the riskiest but most profitable technique as it is so dependent on the public sector for approvals and infrastructure and because it involves a long investment period with no positive cash flow. After subdivision is complete, the developer usually markets the land to a home builder or other end user, for such uses as a warehouse or shopping center.
In any case, use of spatial intelligence tools mitigate the risk of these developers by modeling the population trends and demographic make-up of the sort of customers a home builder or retailer would like to have surrounding their new development.
A smart landowner or developer on any size of project will inevitably want to maximize profits, minimize risk and control his cash-flow. This is a process called Profit Enhancement. This means identifying and developing the best scheme for the local marketplace, whilst satisfying the local planning process.
Essentially, Development Analysis puts development prospects, and the development process itself, under the microscope, identifying exactly where enhancements and improvements can be introduced. These improvements aim to align with best design practice, political sensitivities, and the inevitable social requirements of a project, with the overarching objective of increasing land values and profit margins on behalf of the landowner or developer.
Prefabricated Construction in Land Development
A new trend has emerged in building where property owners and developers are utilizing prefabricated buildings instead of opting for standard means of construction.
There is a definite cost benefit to building in such a way, and structures that come ready to be put together can be assembled very quickly. Prefabricated buildings offer a range of options that give builders increased flexibility when it comes to costs and aesthetics. Although the use of prefabricated buildings is not right for every commercial building application, when they are appropriate, they can save a lot of money, time and aggravation.
Money, Time, Labor savings, flexibility and more Options available
When developing a property, expenditure must be closely monitored and savvy developers are always looking for ways to cut costs. Using prefabricated buildings in lieu of standard construction can save a significant amount of capital, mainly because of how these types of projects are put together. Much of the construction on various components of the structure has been completed off-site, so it takes very few actual workers to put a building together. In most cases, the materials cost less when erecting prefabricated buildings and significantly less labor is needed.
A property owner or developer will not see a return on their investment until the land is properly developed, so speed, with respect to construction, means higher and faster profits. Prefabricated buildings can be constructed much quicker than structures built utilizing traditional techniques, and this is very attractive to those who want to see an expedient return. Every day that a construction crew is not necessary also saves significant amounts of money, and there are many other serious incentives to developing a property quickly. Using prefabricated buildings is a way to get a project completed ahead of schedule.
Because each contractor has his own unique style, property owners and developers are often limited by the small selection of products offered by many commercial builders. Prefabricated building manufacturers, on the other hand, often offer a wide range of different models to choose from. If environmental impact is a concern, a large number of prefabricated buildings are designed to be earth-friendly. As nice as it is to have an extensive selection of options when it comes to design elements of a property's structures, it is also beneficial to have a selection of many different price-points to choose from. Prefabricated buildings allow for the greatest versatility during the construction process.