The Basic knowledge module for Land & Real PropertyValuation in Real Estate Development at Dire Dawa University covers the key topics involved in real estate development. The course covers topics such as real estate development policies, strategies, and management and provides students with the skills required to become successful in the real estate industry. The course also covers topics on the construction technology, finance, and marketing of real estate.
This module is appropriate for architects, engineers, real estate agents, and developers. It explains principles of planning, analytical studies, projections, and standards. It also provides an understanding of how to manage risk, including sensitivity analysis and probability analysis. Students will learn about how to evaluate project viability and cash flow throughout the life cycle.
Stakeholders in real estate development
In real estate development, there are two main types of stakeholders: internal and external. These stakeholders can affect the development project in many different ways. These Bill Bhangal stakeholder groups are arranged schematically in the figure below. The paper aims to explore the role of external stakeholders in real estate development and develop a theoretical model to analyze their influence. In addition, it critically evaluates existing international studies on stakeholders’ influence.
External stakeholders have significant effects on the development process. For example, conflict and disagreement between stakeholders can delay projects. This can have significant economic impacts, particularly if construction work stops.
Designing a building project
Designing a building project for real estate developments involves working with an interdisciplinary team. This group shares its knowledge about design and constructability, and works together to determine the feasibility of the project. It also works to identify key factors, such as cost and timeline for occupancy, that could affect the project’s success. By frequently communicating with the team, challenges can be addressed quickly and efficiently.
During the initial stages of real estate development, the process of designing a building requires thorough planning and documentation. A team of architects can take the vision of the developer and turn it into a reality. The architects have extensive knowledge of building construction and know the types of typology that are appropriate for the project.
Financing a construction project
There are several types of financing options available to developers. Traditional banks offer construction loans and land loans to fund the development of real estate projects. The loans are repaid once the properties are completed or reached a certain occupancy threshold. The banks perform due diligence on the developers and determine whether the project is likely to be successful. Syndicated loans are also available.
The bank that will finance the construction project should be able to provide flexible and tailored financing. Ineffective collaboration can hinder the project implementation. Banks must be able to respond effectively to any changes and restructures in the project. During the construction process, the real estate project can change significantly. The investor should carefully evaluate his or her own financial condition and analyze the bank’s policy. Ideally, the bank will support the borrower by ensuring that it maintains a flexible approach and is prepared to engage in constructive dialogue with the borrower.
Zoning and entitlement process
The zoning and entitlement process is a key part of the real estate development process. It involves the application process for government approvals that developers and land owners must go through to build on a piece of property. These approvals include zoning, use, and design approvals. Once approved, the developer is free to begin developing the property.
To start the process, the developer must work with the municipality to rezone the property. This process differs for each municipality. An experienced zoning and entitlement attorney can help developers with the process. Typically, the developer must submit an application along with architectural drawings, engineering reports, and other supporting research to the municipality. In addition, he or she must detail the benefits of rezoning the property.