When entering the real estate market, there are a few things you need to understand, especially when it comes to real estate development.
In simple terms, a real estate development is a process that involves building new structures and reforming existing ones in order to increase the value of a property – which also means developing properties into residential and commercial buildings that range from multi-family homes and apartment complexes to offices, restaurants and retail spaces.
Developers are the people responsible for handling the projects from start to end. They design, plan and finance all the work that goes into it, including assembling a team that can effectively execute the plan. And once that project is completed, the developer can sell the property to any real estate investor.
Property development can be a lucrative idea, but at the same time, there are a number of obstacles and challenges that can come in the way of projects, profit, or even both. Here are some of the most common ones you will come across.
Not Understanding the Real Estate Market
When in the real estate world, it is a mistake to think that whatever you build will instantly sell. Professional developers tend to pursue projects that are already driven by current market requirements instead of creating a need for the market. And to get a good understanding of the market, developers focus on assessing the trade areas, including a wide variety of factors such as educational, economic, environmental, and employment conditions.
Choosing Unfavorable Locations
Location is key to real estate development and all great development projects start with having a great location where it can align with the needs of the developer’s targeted market and their main demographic. In other words, selecting the ideal property can either make or break your project, so it is important for developers to look up the best real estate opportunities and make the most out of them.
Fortunately, there are a few exceptional establishments that can help you understand the ways real estate developers efficiently manage their work – such as the professionals at Nomad Capital.
Nomad Capital is a highly acclaimed Portugal-based real estate investment, promotion, and development company that was founded in December 2018 by French entrepreneur Alexandre Mansour. The company was founded as a Spinoff of Optylon Group which was a company initially set up in 2014 by him and his partners.
The main focus of Nomad Capital revolves around acting as local development partners for international institutional investors that are looking to establish a presence in Portugal while simultaneously supporting the sourcing, acquisition, development, marketing, and operations of high-end resorts and residential projects.
Furthermore, the company also has a senior management team that helps create some ideal concepts for projects, considering asset and marketing potentials that start from preliminary project studies, including construction areas, architecture, etc., towards business models that are mostly targeted towards serviced residential and branded residences concepts. As such, the company’s work through its previous affiliations has created an investment track record of about 350 million euros in Lisbon, Algarve, and Porto.