Not so long ago, a new word appeared in our vocabulary that many have heard (and more than once), but quite vaguely imagine its meaning. It is borrowed from the English language (from develop) and translates as "develop," "transform," "improve." And the person who is engaged in this very transformation is called a developer. This definition is suitable for any area to which these processes apply, but it is most firmly rooted in the field of real estate. Thus, development is aimed at the quality development of real estate, as a result of which there is an increase in their value. This is a very profitable business that requires serious investment and high time and labor costs.
In this process, the developer is the key person who organizes all its stages, from the idea, the creation of the project and the construction, to the implementation of the object (sale or lease). As a rule, he also owns the financial resources invested in the project, therefore all financial risks completely fall on his shoulders (or rather, his pocket).
What is the main goal that the developer pursues? This is, of course, making a profit by maximizing the value of your project. In this desire, he can start a number of such works as repair or redevelopment of the structure, its interior decoration. All these measures will lead to a qualitative improvement of the object, and therefore, will increase its value in monetary terms. Such development is also called renovation.
What are the responsibilities of real estate developers? These include the following stages of work:
- development of the idea and concept of the future object;
- organization of financial support (if necessary, search for investors);
- feasibility study and selection of a construction team;
- registration of legal rights to the property;
- design and construction works ;
- commissioning of the facility;
- search for a broker for the sale of real estate.
The list is considerable, and this is natural, because the developer is the one who accompanies all stages of the construction and implementation of the facility from beginning to end. And the last moment is just the most pleasant one - commercial gain. And if the project is implemented successfully, then it will work out very well. The largest developers are making millions of dollars on real estate (and this is not only residential buildings and their complexes, but also business and shopping centers). Naturally, in the process they work with various organizations, including banks and insurance companies, construction teams and brokers, and part of the profit goes to cover their services. However, the main benefit are those who manage this entire project, namely, developers.
Currently, this term has become more widespread. Developers are called both software developers and those involved in the development and improvement of business processes in various fields. In general terms, these are people engaged in a type of activity, which is one of the areas of management and gives very significant results both financially and economically.