Although there was a lag in housing supply in 2024, some regions saw growth in real estate development. Mountain West and Sun Belt states had greater housing growth than elsewhere.
Information from Construction Coverage shows that areas with the most growth included Utah, Texas, and Florida.
Albany hadn't made the list, but that doesn't mean there's nothing worth investing in. Read on to learn about real estate development from start to finish.
What Is Real Estate Development?
Real estate development is the multi-step process to create residential or commercial properties. The first step is finding the development site.
Developers then test whether the project is feasible, design it, get the permits, and build it. The final step is selling or leasing the property to would-be occupants.
Concept and Feasibility Analysis
The first step involves checking if it's possible or worth beginning real estate investments. You must analyze market trends to identify local demand and economy.
This step also involves site evaluation. You must evaluate the land size, zoning, and other environmental factors.
Assessing financial projections is the most important step. Estimate your construction and operation costs to ensure the final product is profitable.
Pre-Development Planning
The second stage is largely about getting the land and preparing to build on it. Pre-development project planning involves drafting design plans.
Your drafts are then approved for all required permits.
The Construction Phase
Construction is more than building the project. This third step finalizes your construction documents for your real estate development.
You find a general contractor through the bidding process and from there begin the construction. There should be strict adherence to:
- Budgets
- Timelines
- Quality and safety standards
Completion and Marketing
You must have the completed building inspected for compliance with building codes. You can begin with marketing strategies if it passes.
Your job is attracting would-be buyers or tenants to your real estate investments. Polished listings and promotional campaigns can help.
You can finalize the sale once you've found a buyer or renter.
Important Facts to Consider
Remember that location is always key when planning property developments. The area you build in will matter when trying to drive sales.
Zoning regulations can make or break a project. You don't want to waste investment in developments only to discover you've misunderstood a local zoning law.
You should also conduct environmental assessments to understand your impact on the surroundings. Avoid harming the local neighborhood and ecosystem as much as possible.
Begin Development Project Planning in Albany
Real estate development can be a drawn-out and complex process. The work doesn't end once you've leased the property.
You still have management to worry about. PMI Capitol District can help with all your management needs. We do tenant placement, rent collection, marketing, and more.
Development project planning is difficult enough. We're here to relieve some of the burden by helping streamline the management process.
Contact us to get the most out of management. Also, consider our offer of a free rental analysis. It'll tell you all you need to know about your neighborhood.
