A buzz phrase in the real estate industry is “property development” and here’s a quick rundown of what it is and the different aspects that are a part of it.
The process of developing lands or buildings to have a higher value can be broadly defined as property development. There can be several components to it as well such as extending or renovating a property, buying land and constructing a property on it or converting an existing property to be used for another purpose.
Property development is not a simple task and entails diverse aspects, professions and skills; these can include the services of a planning consultant, architect, quantity surveyor, project manager, contractor, accountant, solicitor and more! While individuals may look to undertake this on a small scale, larger enterprises are generally overseen by trusted property developers; in Sri Lanka, the well-known residential and commercial projects by John Keells Properties are an ideal example.
The two main types of property development are commercial development and residential development though in some cases, there can be an overlap between these two. A prime example of this would be mixed-use developments that feature integrated spaces with residential apartments, offices, a mall, a hotel, and entertainment venues. Property development can also help create a thriving local community with the construction of houses, schools, offices, shops, etc.
While one of the main goals of property development is to turn a profit, this is accomplished by adding value to a property or land by developing it to reach its best value. As with any financial-related venture, there will be a certain risk element too, but property development continues to be an investment option that offers comparatively higher returns and helps to generate wealth.