Planning a new property development is an exciting yet complex venture. From the initial concept to the final construction, there are numerous factors that must be considered to ensure a successful project. Whether you’re an experienced developer or new to the industry, the same 12 key considerations work as a guide through the planning process.
1. Market Research and Feasibility Study
When it comes to building housing developments, understanding the market is crucial. As Buildertrend advises, ‘For the construction industry, market research is more important than ever. Without this data, the information construction companies will use to move forward is based on guesswork.’ To ensure the success of your project, and to fill your newly built homes, it is imperative to conduct thorough market research to determine the demand for your development. Analyse trends, property values, and demographic data to ensure there’s a market for your project. A feasibility study will help assess the economic, technical, and legal viability of the development, providing a clear picture of its potential risks and rewards.
2. Location and Site Selection
Location, location, location isn’t just the name of a popular TV series, it is paramount consideration in real estate. ‘Selecting the perfect location for your construction project significantly influences its success,’ explains Ar. Priyadarrshini Karthik in The Architect’s Diary. Karthik encourages developers to, ‘Regard proximity to transportation networks as a crucial element. Opting for a site with convenient access to highways, ports, and railways can simplify the transportation of construction materials and equipment, cutting costs and minimising potential delays.’
Furthermore, it is important to choose a site that aligns with your target market’s needs. Consider proximity to amenities like schools, hospitals, shopping centres, and public transport links.
It is also necessary to evaluate the site’s topography, soil quality, and environmental constraints to ensure it’s suitable for development.
3. Zoning and Land Use Regulations
Before proceeding with an application for planning permission, you must understand the zoning laws and land use regulations in your chosen area. These rules dictate what can be built, including the type of property, density, and building height. Compliance with local regulations is essential to avoid legal complications and ensure the smooth progress of your project. Primarily, this research can be carried out through the website of the site’s local authority, however, in some cases it might require the advice from someone with a higher level of expertise. ‘Engaging with experienced professionals such as architects, urban planners, and legal consultants can greatly assist in navigating the process and ensuring compliance with zoning laws,’ suggests James Bradley on Landmark Estates.
4. Financial Planning and Budgeting
The financial planning of your development can make or break your project. You must develop a comprehensive financial plan that includes land acquisition costs, construction expenses, permits, and contingencies. As Shore Agents points out, ‘With the ever-changing dynamics of the real estate market, innovative financial strategies have become essential for property development companies.’ So, don’t rely on what you’ve always done to work again. There are many new products and services that you can use to financially bolster your projects and help you succeed. Explore options such as crowdfunding and private equity investment, and look into the financial tools available that could help you maximise returns.
Detailed budgeting will help manage resources effectively and keep the project on track financially. Shore Agents also encourages developers to identify areas for financial efficiency: ‘These can include, but are not limited to, areas such as construction costs, property acquisition, and operational expenses. By critically examining these areas, developers can identify potential opportunities for cost savings.’
5. Design and Architectural Planning
Architects and designers should be engaged early in the planning process, in order to create functional and aesthetically pleasing plans. It is important to remember that, ‘Architects are skilled at creating comprehensive design proposals that address the needs and aspirations of property developers while complying with planning guidelines,’ as Architects Workshop Limited reminds us. They go on to explain that this is because, ‘They consider factors such as site context, sustainability, and community impact to develop compelling designs that increase the chances of obtaining planning permissions.’
Here, the market research you’ve carried out will also help you consider the needs of your target market, and what they most desire from their new homes. Think about energy efficiency, sustainability, and future adaptability. Collaborative planning with stakeholders ensures the design meets both market expectations and regulatory standards.
6. Sustainability and Environmental Impact
Modern developments must prioritise sustainability. ‘A new study conducted by E.ON Energy found that 89% of prospective buyers want sustainable homes that are kind to the planet,’ writes Country Living. So, implement eco-friendly practices such as energy-efficient systems, green building materials, and waste reduction strategies. Conduct an environmental impact assessment to address potential ecological concerns and integrate sustainable solutions. Not only will this put your plans in good stead, this green-focused approach to homebuilding can be detailed and used in the development’s sales and marketing materials, as well as explained in Sustainability Guides for your home users once they have moved in.
7. Infrastructure and Utilities
Ensuring the site has access to essential infrastructure and utilities like water, electricity, sewage, and internet can save you a lot of time and money. If these services are not available anywhere near the vicinity of your land, there could be a long and timely delay to your project. ‘Organising utility connections is often cited as the single most common cause of delay in construction projects,’ warns PBC Today.
It is also important to plan for the development of roads, drainage systems, and other necessary infrastructure.
Coordination with local authorities and utility providers is crucial for timely installation and connection, to prevent these steps from stalling your project.
8. Community and Stakeholder Engagement
It is a wise move to engage with the local community and stakeholders early in the planning process. Transparent communication helps build trust between the developer and the public, while allowing local residents, businesses and council members to raise concerns that you can then address.
Community input can provide valuable insights and foster positive relationships, reducing opposition and facilitating smoother project approval. ‘The goal is to gather input and feedback from the community, address concerns, and ultimately create a development that meets the needs and desires of the people who live and work in the area,’ says Kurby.
9. Legal and Regulatory Compliance
Navigate the legal landscape by obtaining all necessary permits and approvals. ‘Developers must consult with legal professionals and other experts to ensure that they are complying with all relevant legal requirements throughout the development process,’ stresses Wharf Financial Services. Addressing legal matters proactively minimises your risks and should prevent any associated costly delays.
10. Risk Management
As with all projects, construction doesn’t come without its risks. Identify potential issues such as market fluctuations, construction delays, and cost overruns. Using this data, develop a risk management system that includes mitigation strategies and contingency plans. Regularly review and adjust your plan to adapt to changing circumstances and minimise the impact to your development and homebuyers.
11. Marketing and Sales Strategy
Although it’s nice to think so, homes really don’t just sell themselves. No matter how picturesque your location and attractive your properties, each project needs a robust marketing and sales strategy to attract buyers or tenants.
Highlight the development’s unique features and benefits, and be sure to use a mix of digital marketing, social media, and traditional advertising to reach your target audience effectively.
It can be easy to dismiss certain marketing techniques that you don’t feel would reach your audience, such as social media for a retirement property, but remember that families like to help each other find their next home. Maybe 16-year-old Bella will be the one to spot her Granny’s ideal retirement home on Instagram – if Granny didn’t spot it there first! ‘Instagram and TikTok are becoming popular among the elderly. Instagram use increased from 24% in 2021 to 28% in 2022,’ found a study by AARP into the tech trends among older adults. These days, therefore, the lines between older and younger shopping habits are blurring, so be sure to have a comprehensive outreach for your marketing, regardless of the people you imagine to be looking for a property like yours.
12. Project Management and Execution
Effective project management is key to successful property development. As The Knowledge Academy highlights, ‘It is a comprehensive discipline, pivotal in turning Real Estate visions into reality. It demands strategic planning, effective communication, risk management, and a deep understanding of the Real Estate domain.’ Use project management tools and methodologies to oversee the planning, execution, and completion of the project and explore your options for software that can help. Regularly monitor progress, manage timelines, and ensure quality control to deliver the project as planned.
By considering these 12 critical factors, you can navigate the complexities of property development with confidence. Proper planning, thorough research, and proactive management will help ensure your development is successful, sustainable, and profitable. Happy homebuilding!