Real estate development

Real estate development, or property development, is a <a href="/facts/Business_process/fYH2eREc">business process</a>, encompassing activities that range from the <a href="/facts/Renovation/gYdJldPs">renovation</a> and re-<a href="/facts/Lease/rd3gvnkW">lease</a> of existing <a href="/facts/Building/edSjKXje">buildings</a> to the purchase of raw <a href="/facts/Real_Estate/fngFAqrR">land</a> and the sale of <a href="/facts/Developed_land/W6dVvXjT">developed land</a> or parcels to others. Real estate developers are the people and companies who coordinate all of these activities, converting ideas from paper to real <a href="/facts/Property/F6bGqY2w">property</a>. Real estate development is different from <a href="/facts/Construction/58eqDhy9">construction</a> or <a href="/facts/Home_construction/xxrrH9Ga">housebuilding</a>, although many developers also manage the construction process or engage in housebuilding.
Developers buy land, finance real estate deals, build or have builders build projects, develop projects in joint ventures, and create, imagine, control, and orchestrate the process of development from beginning to end. Developers usually take the greatest <a href="/facts/Risk/tbBEDA0V">risk</a> in the creation or renovation of real estate and receive the greatest rewards. Typically, developers purchase a tract of land, determine the <a href="/facts/Marketing/LttVQ66t">marketing</a> of the property, develop the building program and design, obtain the necessary public approval and financing, build the structures, and rent out, manage, and ultimately sell it. 

Sometimes property developers will only undertake part of the process. For example, some developers source a property and get the plans and permits approved before selling the property with the plans and permits to a builder at a premium price. Alternatively, a developer who is also a builder may purchase a property with the plans and permits in place so that they do not have the risk of failing to obtain planning approval and can start construction on the development immediately. The <a href="/facts/Financial_risk/UdGAclEI">financial risks</a> of real estate development and <a href="/facts/Real_estate_investing/sfvTBXRF">real estate investing</a> differ due to <a href="/facts/Leverage_(finance)/aLNbPlPP">leverage</a> effects.
Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, lawyers, leasing agents, etc. In the <a href="/facts/Town_and_Country_Planning/PDWpmCdT">Town and Country Planning</a> context in the United Kingdom, 'development' is defined in the <a href="/facts/Town_and_Country_Planning_Act_1990/RhQAdVGp">Town and Country Planning Act 1990</a> s55.

Real estate development open-in-new

Real estate development