Understanding the development process: From concept to completion
Category News
As a potential buyer, stepping into the world of property development can be both exciting and intimidating. With perks like no transfer costs and modern finishes enticing you, it's natural to seek reassurance about the process behind these developments.
Andre Van Der Merwe from Chas Everitt East Rand, a leading development specialist in, provides valuable insights into how projects come to life, offering clarity and peace of mind as you consider your next property investment.
1. Pre-purchase
Before property development, thorough pre-purchase research is paramount. This initial step involves identifying a suitable block of land or an existing property that can be refurbished. Having your finances sorted and assembling a competent team of professionals, including a development manager, attorney, architect, surveyor, and town planner, sets the foundation for a smooth journey ahead.
2. Concept stage
Once a potential site is secured, the creative process begins. An important planning stage is meeting with local agents well versed in developments to advise on what the current market trends are for both the size of your homes offered and the pricing. Exploring local council regulations and market demands, developers brainstorm the optimal design and layout for their project. Considerations such as neighbourhood character, council guidelines, and market trends shape the project's feasibility and appeal. Detailed sketches and feasibility assessments guide the decision-making process, ultimately leading to the crucial choice of proceeding with the purchase.
3. Purchase
With a well-defined concept in hand, the purchase stage marks the acquisition of the chosen site at a viable price. Negotiation skills and financial acumen play pivotal roles in securing a deal that aligns with the project's profitability goals.
4. Town planning
Navigating town planning regulations, architects, surveyors, and town planners collaborate to draft plans compliant with regulatory requirements. Patience is key during this stage, as obtaining development approval can be a lengthy process, spanning up to twelve months.
5. Working on drawing and documentation
After approval, the focus shifts to meticulously documenting the project's details to obtain the necessary building permits. Architects and engineers labour over intricate drawings, ensuring every aspect meets regulatory standards. This stage demands attention to detail and adherence to timelines, with an average duration of three to four months.
6. Pre-construction
With approved plans, developers head onto the pre-construction phase, obtaining quotes from potential builders and securing financing. This period involves careful planning and coordination to lay the groundwork for a successful construction phase. At this stage, it is also advised to prepare for the potential marketing of the development. SWOT analysis is a crucial tool in strategic planning, and it is no different when it comes to marketing a new development. A SWOT analysis will help identify the strengths, weaknesses, opportunities, and threats of the development. This analysis assists in developing a marketing plan that will maximise the return on investment through sustained sales.
7. Marketing
One of the key purposes of the marketing plan is to identify the target market for the development. This involves researching the demographics, psychographics, and behaviour of potential buyers in the area. By understanding the needs and preferences of the target market, the marketing team can tailor their messaging and promotional activities to resonate with them.
In today's digital age, it is important for developers to allocate a significant portion of their marketing budget to digital marketing efforts. This includes website development and optimisation, social media advertising, email marketing, and search engine optimisation. These channels are often more cost-effective than traditional advertising methods and can reach a wider audience.
8. Construction and Sales
Construction brings the project to life. Builders execute the plans, while developers oversee progress and manage finances. In addition, it is critical for your appointed sales agency to ensure the homes are selling to ensure the viability of the project. After all the numbers and profitability are the reason for the development.
The duration of this stage varies depending on the project's scale, ranging from six to twelve months.
9. Completion
Concluding months of hard work, the completion stage signals the realisation of the developer's vision. The finished project has either been leased or sold, marking the end of one journey and the beginning of another.
The development process requires creativity, perseverance, and strategic planning. From conception to completion, each stage presents its unique challenges and rewards. By understanding the development process, buyers are now armed with knowledge to approach property investment confidently, knowing they have guidance to make informed decisions to turn their visions into reality.
Andre Van Der Merwe:
082 563 4880 | 011 425 0502 | benoni@everitt.co.za
Author: Chas Everitt