Frequently ASKED questions

What Is Property Development?

The term ‘property development’ describes a business process that has a broad remit that includes the renovation and re-leasing of existing properties, as well as the purchase of empty land and the sale of developed land. Property development is different from construction; however, many developers also manage the construction process as part of an overall development project.

Property development has created the built environment that surrounds us all, including the shops, houses, flats, hotels, schools, hospitals and warehouses that we live and work in.

What Is the Role of a Property Developer?

A property developer is the person, group of people or company that coordinates the development of a piece of land and/or property. A property developer will oversee all of the decisions and activities that relate to a property, taking responsibility for transforming ideas on paper into reality.

A developer has a number of options, as they can focus on buying land; financing property deals; or designing, building and managing property developments. Often a property developer will purchase a piece of land, taking responsibility for developing the designs and buildings, obtaining the approvals, financing the build, marketing the property/properties, and managing the rentals and sales.

Developers often take a creative role, imagining new projects and buildings. However, there is also a strong business element to the role of the property developer, as they must control and coordinate the complex process of developing a property from start to finish. Typically, a property developer takes the greatest risk related to a project, which is rewarded with the greatest profits should the project be a success.

The process of property development can be split into different sections, with developers specialising in a particular process or stage of a development. For example, a developer might specialise in finding land and/or properties and acquiring the necessary permits and planning permission, before selling to a different developer that will undertake the building and construction.

What Is ‘Real Estate’?

The terms ‘real estate developer’ and ‘property developer’ are often used interchangeably. However, there is a distinct difference between the two. The term real estate refers to both land and buildings, whereas property refers specifically to buildings (both residential and commercial).