The document outlines the key parties and phases involved in the property development process. The six main parties are professional advisors, clients, the planning authority, contractors, the community, and funders. There are four key phases: evaluation, preparation, implementation, and disposal. Evaluation is the most important phase and involves thorough market research and financial assessment before any commitments are made. The development process then involves choosing a location, acquiring a site, designing plans, obtaining planning consent and financing, construction, and marketing. One challenge is obtaining suitable land for development while minimizing environmental impacts.
The document outlines the key parties and phases involved in the property development process. The six main parties are professional advisors, clients, the planning authority, contractors, the community, and funders. There are four key phases: evaluation, preparation, implementation, and disposal. Evaluation is the most important phase and involves thorough market research and financial assessment before any commitments are made. The development process then involves choosing a location, acquiring a site, designing plans, obtaining planning consent and financing, construction, and marketing. One challenge is obtaining suitable land for development while minimizing environmental impacts.
The document outlines the key parties and phases involved in the property development process. The six main parties are professional advisors, clients, the planning authority, contractors, the community, and funders. There are four key phases: evaluation, preparation, implementation, and disposal. Evaluation is the most important phase and involves thorough market research and financial assessment before any commitments are made. The development process then involves choosing a location, acquiring a site, designing plans, obtaining planning consent and financing, construction, and marketing. One challenge is obtaining suitable land for development while minimizing environmental impacts.
The document outlines the key parties and phases involved in the property development process. The six main parties are professional advisors, clients, the planning authority, contractors, the community, and funders. There are four key phases: evaluation, preparation, implementation, and disposal. Evaluation is the most important phase and involves thorough market research and financial assessment before any commitments are made. The development process then involves choosing a location, acquiring a site, designing plans, obtaining planning consent and financing, construction, and marketing. One challenge is obtaining suitable land for development while minimizing environmental impacts.
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The parties in the development process:
The six main parties involved in the development process are:
1. The professional advisers The architect, quantity surveyor, valuer, planning consultant and possibly consulting engineer, construction manager and project manager.
2. The clients The developer and the landowner, who could be an occupier or an investor/trade in development property. The client could be a private or public sector client. The client could be the owner of extensive estates such as a statutory undertake or the heir to historical landed estates, it could be a major investor like a financial institution such as a pension fund or insurance company.
3. The planning authority The planning authority would deal with planning and highway matters and may have policies to encourage development for employment purposes for instance.
4. The contractor The contractor is employed on the construction of the building and may in turn employ subcontractors. The nature of the building contract or method of building procurement, as it is now more commonly termed, will determine the relationship of the contractor with the client.
5. The community Local residents may have views on the proposed development in addition to the planning authority as may pressure groups or specific interest groups affected by the development proposal.
6. The funders These are providers of short term funds for the development and the providers of long term funds in the event of buyout or partnership arrangement at the end of the development. The development may be initially funded by the client who may also be an owner-occupier or financial institution. The role of property development in the economy 1. To revitalize the economy by encouraging investment 2. To use the assets available in the production process to obtain greater economic growth and added value. The need for efficient property relates to government policy The post war policy of demand management led to: - Adjustment in government spending and taxation - Deflation and reflection of the economy - Problems of inflation The solve inflation: - The economists looked at the supply side of the economy - Saw the need to encourage efficiency and competitiveness in world markets. - Hence saw the need for efficient space and - Hence the need for effective property development.
------------------page7- 9 property development (David Isaac) Development is a land conversion process by charge of use, construction, reconstruction or renovation of land or buildings. The scale of charge differs ant the change is motivated because of client needs. If the clients needs are profit oriented then this conversion process is generally stimulated by the need to achieve higher profitability from land use or business enterprise. If we assume that developers and property owners to maximized profits, then there are 2 necessary preconditions before a development project will be initiated: 1. The expected value of the completed development must exceed the cost of the site and the development costs, including a sufficient level of profit for the developer. 2. The value of the site for development purposes must match (or exceed) its value for existing use. ------------------page 11 property development (David Isaac) There were key phases in the development process : evaluation, preparation, implementation, and disposal. The most important phase was evaluation. evaluation encompasses both the analysis of the marketplace in general and in particular market research and the financial assessment of the project. It should be carried out before any commitment is undertaken and while the developer retains flexibility evaluation involves the combined advice of the development team but in the end and the responsibility for interpreting that advice rests with the developer who has decide whether or nor to bear the risk of the project. 12 main stages development process 1. Choosing a location 2. Identifying a site and carrying out a detailed site survey 3. Providing an outline scheme and appraisal 4. Negotiating for site acquisition 5. Design 6. Planning consent 7. Finance 8. Site acquisition 9. Detailed plans 10. Tender documents for construction 11. Construction 12. Occupation or marketing and management.
One of the major problems facing property development is the supply of land and building in appropriate locations for development. By providing urban land, rather than looking for Greenfield sites with the associated environmental consequences, problems of development would be lessened.
------------------page 16 property development (David Isaac)
The development process
Initial consideration
Clients requirement
3 factors (time, cost, quality) Assess vialibity (depends on funding, planning, professional team, site appraisal)
Planning
Funding
Establish the project team
Prepare brief(architects design and costs from the QS and planning application