As we all know, property development can be immensely lucrative, but it’s essential that you must have your bases covered before taking it on a large project. In this rapidly boosting industry, making profits is tricky, but you can make a ton when you’ve got your hand on it. Keeping that in mind, we’ve come up with best tips that will not only help in generating huge profits but also help you avoid expensive errors in your next development. So let’s dive in;
Select the Right Property
First of all, you have to decide whether you want to go for raw land or developed property. In such cases, your decision will depend on these factors like; location, tolerance for risk, how long you want to invest for, property development skills and financing capacity. If you buy a property that’s already developed, you’ll end up paying more. But for a higher price, you will save time as you won’t then have to go through the DA process. This type of deal is usually preferable for the first-time property developers in UAE or the ones with limited experience.
On the flip side, buying raw land is less expensive but be prepared for a ton of uncertainty too. For sure, it would take so much of the time and skills to go through the DA process, and nobody knows whether the DA will be approved. Make sure you buy the raw land at a lower price as there’s a higher level of risk.
Find a quality builder
When it comes to finding a reputable, reliable and experienced builder, this turns out to be one of the most critical components of successful property development. Since you’re up for getting started, you’ll need to display home area and discuss with different builders. So how you can find a display home area? Simply by check on google. But make sure you also mention the name of your suburb.
While having a conversation with builders, you should ask the following questions;
- What sort of projects have you worked for earlier?
- What project are you working on right now?
- What would be the lead time?
- How about your specialty like residential, commercial or duplexes?
Make sure, you look for a builder that has at least 10 years of experience and has been working consistently. Once you’ve identified a few builders, conduct interviews to find out if the company can meet your specific needs.
Create a marketable product
Keep in mind, there’s no use of investing such a massive amount of creating and marketing a product that people just don’t want to buy. It’s because you just can’t make a profit as a developer until and unless you come up with something that people are interested in & willing to buy. In that case, you are supposed to do thorough research and learn about what type of properties are most desirable for the area and your target market.
If you’re wondering about what type of properties are selling, make sure you talk to the local real estate agents for that. For sure, they’re able to provide enough information about in-demand properties along with their attributes. Usually, the demands entail two-story, large yard, three bedrooms, attached garage, etc. Your Research is incomplete if you don’t learn about the types of people who are buying in the area like families, millennial, retirees, etc. So make sure you learn about them as well.
Do you want to learn more about things that property developers need to know? Just check out the article now.