Real estate development observations

Some governments have created incentives to keep the property market interesting and the UK for example has seen extremely strong sales. This however may not reflect the true position and developers should not be complacent, innovation is key.

The basic word following Covid19 will be “space”, inside for working, outside for fresh air. More and more emphasis on eco-friendly development and the incorporation of renewable energy. This will apply equally to residential and commercial.

There has been a continued growth in branded residential development sales as more people now have the capability to work from anywhere. This means you can live on a beach for 6 months of the year and still work in high tec industries, banking, and many other role. Branded residential provides a premium for the developer albeit with higher costs. It provides much needed security and comfort for buyers and that is the essence of the success.

With population growth it is projected that the world will require 50% more energy, 40% more water and 35% more food to sustain the population.

A rethink is required by developers and regardless of the price point you are targeting the same qualities are sought as well as value. The value proposition will always remain key and positioning this will remain crucial. Research is required, identify the need and react to that, tech-friendly properties, family needs, for commercial, what is the new normal, more space, less face-to-face meetings etc.

Technology will play an ever-increasing role in development and developers need to be ready with their strategy to take advantage and stay ahead of the curve.

Transactions will happen online allowing the opportunity for more “site unseen sales” but this will only happen if the latest technology is utilised. The developers who do not embrace this will be left behind.

Developer needs to make the buying process easy, less bureaucracy more streamlined.

Most importantly however is a great sales team, well trained, highly incentivised and complete product champions of the products they sell. Residential or commercial the sales team should not only close deals but they should be driving the requirements and needs for your next real estate development,