Large Real Estate Projects are managed and marketed by a development company that employs professionals specializing in various aspects of the field, from land acquisition to construction and marketing the property at the end of the process. A development company, as opposed to private contractors, is responsible for the entire project from start to finish. It invests its own funds in acquiring land, whether it’s vacant land or land with an existing structure that needs to be demolished to make way for a new, often larger building. The company employs relevant professionals whose goal is to perform various tasks related to the project, and ultimately, it markets the property to potential investors.
How a Development Company Operates in Practice
In the first stage, the company looks for opportunities, examining what may be suitable for it. For example, if it discovers a plot of land where it makes sense to build and has the option to purchase it, it will do so. Once it receives all necessary approvals, it will begin planning the project itself.
In the second stage, the company may decide to market the properties in the project before starting the construction process. This way, it can generate revenue and secure funding for further investment. After this stage, it will start the construction process according to a structured plan. The goal is to complete the project according to the pre-established timeline.
In the third stage, when the project is completed, the company will market the properties that it was unable to sell earlier. The aim is to reach a point where all the properties are sold. This allows the company to recover its investment costs.
What Areas Does a Development Company Operate In?
In principle, a development company can operate in both residential and commercial real estate. Sometimes, it’s a combination of both. Today, it’s common to build more complex projects that include elements that were not present in the past, partly because the requirements have increased, and options have changed.
If you’re looking for a development company to collaborate with on a real estate project or, alternatively, a company that markets properties for purchase and investment, now is the time to contact us at BST. We would be happy to assist you at any time and answer any questions you may have on the subject.
