Real Estate Developers
Real estate development, or property development, is a business
process, encompassing activities that range from the renovation and re-lease of existing
buildings to the purchase of raw land and the sale of developed land or parcels to
others. Real estate developers are the people and companies who coordinate all of these
activities, converting ideas from paper to real property.[1] Real estate development is
different from construction or housebuilding, although many developers also manage the
construction process or engage in housebuilding.
Developers buy land, finance real estate deals, build or have builders build
projects,
develop projects in joint ventures, and create, imagine, control, and orchestrate the
process of development from beginning to end.[2] Developers usually take the greatest risk
in the creation or renovation of real estate and receive the greatest rewards. Typically,
developers purchase a tract of land, determine the marketing of the property, develop the
building program and design, obtain the necessary public approval and financing, build the
structures, and rent out, manage, and ultimately sell it.[1]
Sometimes property developers will only undertake part of the process. For example, some
developers source a property and get the plans and permits approved before selling the
property with the plans and permits to a builder at a premium price. Alternatively, a
developer that is also a builder may purchase a property with the plans and permits in place
so that they do not have the risk of failing to obtain planning approval and can start
construction on the development immediately.