This module has helped me to understand the basic principles of economics and its link to the real world of construction and to develop an understanding of the whole process of property development. It has also helped me to enhance the understanding of the contribution of feasibility study in property development. Furthermore, I was able to understand the overall mechanism of the finance system in the construction industry.
Property development is a process that involves changing or intensifying the use of land to produce buildings for occupation.
Property development is:
− a complex activity involving the use of scarce resources.
− a high risk activity involving large sums of money tied up
in the production process.
− a product which is relatively indivisible.
National and local economies directly influences the process.
Lengthy process of development means assumptions made at
the outset may have changed substantially by completion.
The development process is divided into the following main
stages:
1. Initiation
2. Evaluation
3. Acquisition
4. Design and costing
5. Permissions
6. Commitment
7. Implementation
8. Let/manage/dispose
These stages may not always follow this sequence and may
overlap or repeat.
This sequence show a typical speculative development where
occupier is not sought until after completion of the buildings.
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