The concept of development in our company is formed by looking at the concept of sustainable development. Development management means that the life cycle of a construction project is considered as a living organism and an attempt is made to maintain and prolong its life in the best possible condition. In this view, approval from the society and audience groups precedes construction processes and this is the view that is the missing link in Iran’s construction industry.
The definition of developer in real estate is like the definition of entrepreneurship. The existence of a person is defined in the existence of a group, and the developer refers to many persons during the real estate development process and during the life cycle of a property, all of whom are considered as a whole unit in one process.
If we want to draw this group more clearly, we need to draw a matrix of the development process that tells us “what happens” and “who does it” at each stage. Also, in this matrix, we can answer questions such as what happens in such situations; What should happen? Who should do it? And when should it happen? also answer
The development process in real estate is a complex process. Unlike many mass-produced industries, each real estate project is “unique” and the development process is very much like a creature of a political process, in which the community confronts each major project with a new opportunity for negotiation, discussion, and reconsideration. It has basic issues from an economic point of view. in other words; Who pays, who benefits, who takes risks and who stands to participate in the decision making process. Therefore, the development process for universities that is politically complex remains a prominent issue.
The entire process of real estate development is a physical and economic life cycle that includes planning, construction, renovation and redevelopment. Building development is like the creation of existence from the dimension of space and time. This development covers a wide range from a simple building to the complex technologies of skyscrapers. Like a factory product, a development-oriented project is part of a larger physical system through which we are supposed to achieve long-term goals. On the other hand, each project is a small business enterprise of its own. Therefore, the development process is a combination of construction technologies, financial management, marketing skills, management controls and innovation that requires the presence of a real estate company over the years.
This view of the real estate development process appreciates the complexity and presence of multiple stakeholders throughout the process, and also points to the long-term nature and ongoing management of the project through a real estate company. The development process is both very theoretical and very functional.
In each step of this seven-step process, the developer performs tasks by allocating specific costs, using talented forces and special abilities, and assumes the risks of the project’s value. At each step, the developer buys something and sells something. At each step, the developer must answer the following questions:
The process below is the full cycle of real estate development, which can be considered as a single cycle or each part of the process can be defined separately.
Land selection should be done with the belief that this location will become a place for attractive development in the future. This land can be purchased or in many cases partnered with other institutions and selected from government, municipal or public lands. This step is a very sensitive step that can play the role of investment in the project process. A good example of this can be mentioned when you choose the right land during urban development, you own a green land, while those who are looking for development have brown land, and this is a good chance to increase capital. Is.
The person who buys the suitable land at this stage is called a land banker.
A land packager means someone who buys raw land from a land banker and then increases the value of the land through actions (of course, these two people, land banker and land packager, can be the same person). Increasing the value of land is done through a series of strengthening paperwork, namely: Preparation of land-based concept planning (or design brief), changes that can be made in zoning and land subdivision, economic and financial plans and other processes such as preparing opportunity studies. Examples that we can mention in this section are land planning companies, skilled lawyers, government agencies, and the like that obtain legal and government approvals for land. At this stage, the land that has been repackaged and left raw is sold to the “land developer”.
The land developer buys the land that has a plan or in other words added value and then develops the land in such a way that it can be delivered to the builders as a finished platform. This issue usually includes development infrastructure such as roads and facilities, as well as recreational facilities or the issue of water and electricity, etc. (Example of Rasht Citadium) This stage is called horizontal infrastructure development.
At this stage, there are companies that act as master planners and prepare the land with roads, facilities and all the necessary infrastructure and sell it to builders such as housing builders.
The building developer buys the land as a prepared bed from the land developer and then carries out vertical development. At this stage, the task of defining a suitable concept and predicting the future is considered an important task. In many countries, after the construction stage, the building is sold to construction operators! (I don’t think we have this model in Iran; in Iran, the operator may rent the construction complex from the builder for several years; or BOT may happen).
The operator of the building rents the property, manages it, and knows that he must make the management cycle of the operation so correct and with a standard that he can sell the building to another operation at the appropriate time during the economic life of the building or even after completion. useful life of the building, he can hand it over for reconstruction and revival or invest in it himself. (This issue is important from the point of view of the mental image. If a building is popular, buying it for the purpose of exploitation or revitalization from another group is economical and logical.) All over the world, companies that Investors are institutions such as insurance companies, or real estate investment funds or pension companies.
A person who is responsible for renovating and revitalizing real estate, a property renovator, buys a building that has suffered physical problems or financial economic decline, and fixes these deficiencies through repositioning, and restores the building to the stage for redevelopment. Prepares exploits. The unique capabilities and acceptance of such risks are usually accepted by companies that specialize in “historical reconstruction”. Currently, many mall developers are looking for old malls that need product reform and re-introduction to the market and re-marketing through a different and new industry layout. This topic itself has become a profitable business in specialized markets.
Real estate redevelopers purchase property that has suffered serious functional or physical problems to repurpose it for a new use. Basically, at this stage, the developer has to repeat many of the previous steps. In major cities around the world, redevelopment agencies are government or government-sponsored and are perhaps the biggest players in the sector. They don’t actually “buy” these properties, but select them from the municipal real estate fund, for example in this fund there may be properties that have been seized due to tax problems and many other legal issues.
It is emphasized that we must know that in all these stages, tasks must be completed, investors must be committed, risks must be accepted, and value must be created.
Each step of the development management process requires special skills and talents from the development team. Each stage begins with the task or role of acquisition (creating ownership) and finally ends with the role of transfer. The other tasks mentioned below are not necessarily in a specific order and may be scheduled depending on the circumstances.
Each stage of the development process begins with acquisition tasks. The task of the developer at this stage is to recognize that the land or property in question has an opportunity to create value. And if this is the case, it can go through the desired stage to move to the next stage. At this stage, it is necessary to consider financial and human resources in order to form a team to deal with the upcoming risks.
TheOne Iranian begins the acquisition phase with opportunity studies. Opportunity studies and feasibility studies finally end in planning, contract setting, economic and legal evaluations, market measurement and closing the contract.
Each stage of the development process begins with acquisition tasks. The task of the developer at this stage is to recognize that the land or property in question has an opportunity to create value. And if this is the case, it can go through the desired stage to move to the next stage. At this stage, it is necessary to consider financial and human resources in order to form a team to deal with the upcoming risks.
TheOne Iranian begins the acquisition phase with opportunity studies. Opportunity studies and feasibility studies finally end in planning, contract setting, economic and legal evaluations, market measurement and closing the contract.
Marketing duties require the developer to determine what the current and future market conditions are for the expected use(s) of the property. Then the developer must determine the most appropriate marketing strategy according to the current and future market conditions. In implementing the marketing strategy, the developer must determine the appropriate marketing mix. Marketing tasks can be divided into three categories: Anticipated economic conditions, market strategy, and advertising and promotion (marketing mix).
Anticipated market conditions:
Market strategies:
Promotion and advertising:
The developer must determine how the past, present and future environmental conditions of the site and its surrounding areas will affect the development of this particular site and set of uses. In doing so, the developer must consider how atmospheric, surface, and subsurface conditions will affect site development. Also, the developer should determine how the historical and cultural traditions of the area and its surroundings affect the development of the site. Finally, the developer must determine whether an environmental impact study is required. According to these considerations and decisions, the developer must resolve, modify or adapt them in a timely and cost-effective manner.
At any stage where approvals and permits are required to operate, improve, or modify the property during development, the developer must not only determine what approvals and permits are required, but also obtain these approvals and permits in a timely and cost-effective manner. get cheap Approvals may be at the national, provincial or municipal level, and may also be from regional authorities or private individuals or organizations.
“Improvement” tasks require the developer to determine what improvements (public or private, horizontal or vertical) should be planned, designed, engineered, and constructed. With this determination, the developer must be able to plan, design, engineer, or create these improvements in a timely, efficient, and cost-effective manner.
Planning and design:
Engineering:
Sales and assignment duties require the developer to complete due diligence on the seller, market the property for sale, negotiate and execute the sales contract, and finally, negotiate any necessary development agreements. The developer may decide not to sell the property at this stage and move on to the next stage of development. In this case, preparatory practice is then combined with acquisition tasks for the next stage of development.
Accuracy of the seller:
Marketing:
Contract of sale:
Development Agreements (Effective Upon Closing)
