The Importance of Real Estate Developer in Turkey
The real estate developer is considered an important part of every successful real estate investment
The Importance of Real Estate Developer in Turkey
Table of content
- Why is Real Estate Development Important for Investment?
- Things You Should Consider Before Hiring a Real Estate Developer
Why is Real Estate Development Important for Investment?
The real estate developer is considered an important part of every successful real estate investment. Choosing the real estate developer as an investment partner is one of the most important initial steps that an investor should not waste when starting his project. To ensure the safety of his investment and obtaining the optimum result, especially with the increase of projects supervised by a large number of developers and real estate development companies.
So who is the real estate developer, and what is his job? What does the concept of real estate development mean? How does the real estate development process take place? And what should you know from the real estate developer before you hire him?
This is what we will answer in our next article, explaining an important issue that investors should not overlook before venturing their capital without adequate study of their new projects.
Introduction to the Real Estate Developer and the Responsibilities
The real estate developer: is a person or company developing a particular area or location, or rebuilding and updating an existing entity, where they develop the project idea, feasibility study, sources of financing, consultant identification, contractor, marketing study and sales strategy and all of this contributes to the success of the project.
The developer has multiple options and accurate knowledge of the real estate market, the project's outcome, and the aim of its development after the completion period. He coordinates the various activities of the development process, which transforms the creative idea from an idea on paper into reality on the ground. The role of the developer differs entirely from the role of the contractor and consultant.
A Guide to Property Development
Real Estate Development: a profitable business and investment, including modification activities, such as the partial or total repair of old or neglected properties, the renovation of existing buildings, the purchase of vacant land, the establishment of an innovative project, and subsequent marketing and sale.
Consequently, the real estate developer is a person who looks at all the details of the project and is aware of his strengths, weaknesses, and successes in the project he supervises before starting it. He may remark on things, which may not be noticed by the investor or the contractor usually; where the contractor in some of the conditions may not notice what the developer can see where he does the development of feasibility studies that will achieve the best possible results.
The real estate investor often seeks to invest the land for a limited period for the purpose of buying and selling, seeking profit, without knowing much of the important data. The role of real estate developers is to find new raw land, through which to produce real estate products that meet the real needs of the community, between residential, industrial or commercial products...
What is the Different Between a Developer and a Contractor
The developer is not a contractor or a real estate consultant; he is a development manager who provides the best idea for the project through detailed feasibility studies, funding sources, selection of the best consultant, the most suitable contractor, and the marketing plan and sales strategy.
The name "real estate developer" is only for those who provide integrated services in the field of real estate, and those who add value that helps to build the project quickly, while avoiding mistakes in the work, and provide good management and marketing of the property and maintain its value.
Steps for a Succesful Real Estate Development
The real estate developer is distinguished from the first moment to study the idea of the project with his previous experience in his field and with his specific remarks the real estate developer can assist in the development of the project to be started from the first moment through his independent view of the investor and contractor's view.
- Preparation of ideas related to the implementation of the project: The real estate developer's job begins from the moment of creating the ideas for the implementation of the project, and this stage is the most important stage of the development stages, usually stems from the developer's vision and his great knowledge of the needs of the real estate market and society in general. He then undertakes the preparation of preliminary financial studies to ascertain the feasibility of the project and the likelihood of its success.
- And then moves to the stage of forming of the idea, and the location of the site, and the work of financial studies, and initial designs through specialized offices.
- The developer then prepares market studies, financial feasibility, and designs that qualify him to take the necessary licenses for the project.
- He then moves to the final design phase, starts negotiating construction contracts, determining the contractor to be hired, and contracts with the financiers.
- Then comes the stage of signing contracts for the project; from building, financing, supplying, marketing, and others.
- During the construction phase, the developer will do the work of the manager, who follows the progress of the work according to the time and financial plan of the project, through direct supervision and careful follow-up, and the developer during this stage also follow the changes and problems that occur on the project and solve them by the lowest possible material and temporal costs.
- Then comes the final phases, which are the opening of the project, the media campaign, and contracting with the project management companies, and marketing, and make sure it is ready for use.
Then the developer manages the new property and follows up its operation while maintaining its value and marketing continuously to ensure the highest amount of profits.
The commitment of previous steps by the real estate developer contributes greatly to the success of the project and to achieve the highest possible profit.
Things You Should Consider Before Hiring a Real Estate Developer
It is important to know some important things before contracting with the real estate developer who will oversee your new project, to ascertain the extent of his ability and experience, to be sure about the future of your project that you will develop in his hands, and to enhance mutual trust between the investor and the developer.
- Get as much information as you can and ask for detailed information about your project that you want to hire the developer about, and not just the data available in the advertising media. You have the right to request the selected site maps, expectations of project success, expected obstacles, etc.
- Learn more about the real estate developer's history and experience in his field: Do not hesitate to ask any questions that help you to identify the background of your real estate developer, and not just information available on his website or what is mentioned in his ID. This will help you learn more about your real estate developer and his experience on the ground and his previous projects will talk about his successes in his specialty.
- Time of completion: and to know the estimated time period for the construction and delivery of the project.
- Ask about current development projects, and municipal plans to develop the services of the area where your new project is located; to have a clear vision of the success of your project.
- Cost study: and to ensure the adequacy of capital to cover the costs of the project, it is not advisable to rely on the proceeds of sales of the project to develop and complete it, fearing that the project falters or stops affected by an emergency financial crisis.
- Knowledge of alternative plans and contingency preparedness in case the project faced a problem during construction; to determine the developer's suitability in case of accidental crisis.
- Putting penalty clauses if the real estate developer is unable to complete the project, you must obtain sufficient guarantees that will protect you from losing your money if the project stops.
- Request to know the engineering consultant who will supervise the project, and the contractor to be hired.
- Inquire about the services of the real estate developer after the completion of the project, and future plans for the success of the project and marketing it.
Edited by: Imtilak Real Estate ©
Source: almalnews- weetas
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