Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
You can change this under Settings & Account at any time.
LECTURE 1: DEVELOPMENT PROCESS
Transcript of LECTURE 1: DEVELOPMENT PROCESS
property development is a costly investment
relatively high risk investment.
subject to a lot of factors and economic variables.
LECTURE 1: DEVELOPMENT PROCESS
DRIVERS OF R.E DEVELOPMENT
(1) the structure,
(2) the actors,
(3) the events,
(4) the site,
PROCESS & STAGES OF DEVELOPMENT
PROCESS (8 PROCESSES)
STAGES OF DEVELOPMENT
POST DEVELOPMENT STAGES
A. Pre development stage
Submission cost for approval of building plans
Environmental impact assessment (EIA)
Planning approval fees
Contribution to technical departments
At the of the session the course participants will understand about :
the various steps in a property development process
stages in property development
development cost items
property development appraisal
1. Initiation/ Site Identification
4. Design and costing
5. Permission/ approval
7. Implementation/ construction
8. Let/ manage/ dispose
B. DEVELOPMENT STAGE
1.0 Site preparation cost
Cut and fill
2.0 Infrastructure works
Road and drains
Water supply reticulation
Elevated water tank / reservoir
Religious place of worship
3.0 Building construction cost
4.0 Landscaping works
5.0 Professional fees
6.0 Cost of bridging finance
7.0 Marketing and promotional cost
8.0 Project management cost
9.0 Contingencies -
(a) An event that may occur but that is not likely or intended; a possibility. (b) A possibility that must be prepared for; a future emergency.
C. POST DEVELOPMENT STAGE
1.0 Property management cost
Maintenance cost to rectify building defects during the defect liability period
DEVELOPMENT COST ITEMS
TECHNIQUES IN R.E DEVT APPRAISAL
Methods of Financial Evaluation
AIMS OF REAL ESTATE DEVELOPMENT
SOCIAL AND ENVIRONMENTAL MISSION
STAGES OF DEVELOPMENT
4.1 Initiation/ Site Identification
4.1.1 Developer’s initiatives
4.1.2 Landowner initiatives
4.1.3 Government initiatives
Evaluation includes ; site investigation, market research, and the financial appraisal of the proposed development.
The purpose- the cost of the development is reasonable and the economic viability of the project can be attained.
4.2.1 Site investigation
site survey i.e. physical and boundary inspection and land surveying
ground investigation i.e. soil test and EIA
contamination i.e. pollution and toxic waste.
services i.e. the availability of public services and connections
legal investigation to verify legal conditions of site.
financial investigation to ensure the site is suitable for financing.
4.2.2 Feasibility Study
To determine whether a project is financially feasible,
to identify and recommend choices of development and
how the project should be implemented, priced and marketed
Covers five perspective :-
1. Site/ locational feasibility
2. Economic feasibility
3. Market feasibility
4. Design feasibility
5. Financial feasibility
May be undertaken using the following approaches :-
4.4 Design and Costing
1. Architect to provide the architectural and working drawings
2. Engineers to provide the structural and mechanical and electrical drawings
3. Quantity surveyors to provide costings and bill of quantities
4. Town planners to provide the layout plan of the overall development.
5. Project manager to provide the management strategy, network analysis
4.5 Development Permission & Approval
Application and approval by Securities Commission
Application and approval for conversion and subdivision
Application and approval for development order and building plans
Application and approval for developer’s licence and advertising permit
Application and approval for bridging and end financing
4.6 Implementation and Construction
The second stage of development
Deals with the physical aspects of the development
Infrastructure and building construction.
4.6.1 The professional team
monitor and supervise the contractor to ensure the contractor keep to the design and specifications.
monitor the structural, mechanical and electrical aspects of the construction
monitor, supervise materials, quantities and costings in accordance to the building contract and to approve progress payments to contractors.
ensure the contruction is done according to the scheduled plan.
Real estate agent
promote the development in order to capture the market share.
4.6.2 Stages of construction
Foundation and sub structural works
Super structural works
Finishes and fittings
4.7 Sales and Promotion
an essential and integral part of the development process. The disposal whether through sale or letting
should be planned and thought out during the evaluation process and implemented.
based on the market research undertaken during the evaluation process
developers policy and strategy
to sell or to rent or both.