Research, Acquisition and Talent: The Top Aptitudes Driving the Success of a Property Development Company
Understanding property and knowing how to capitalise on potential, maximise investment opportunities and minimise risk comes with a passion for the industry. Any leading property development company will have three essential specialities that are a testament to their success- research,acquisition and talent.
Why is Research Important to a Property Development Company?
Research informs action. Undergoing research in property development is important in understanding internal and external factors that will influence the success of a project. From an internal perspective, these can include operations, strategic risks, innovation and financial aspects. Assessing the business from the inside out and researching each element in depth will allow seamless organisation, best practice and understanding of the strengths and opportunities that lie ahead. This can range from ensuring you have adequate personnel planning a project, to determining the finances available to fund a project.
From the external, factors such as economic, legal, political and cultural are of high importance. External factors are out of the control of a business, and so by undertaking extensive research of these elements property development companies are made aware of the current and forecasted influences. The can include an overview of the present and future national economy, the rules and regulations they must abide by- on a local and state level, the consumer and social trends and any government factors that could impact or improve a project.
Research must include investigation of a potential development area, the laws associated with the development type such as zoning, and the shifts and trends in the market and amongst consumers as a bare minimum.
What is the Importance of Acquisition to a Property Development Company?
One of the core strengths of a successful property development company lies in one major department- Acquisition.
Acquisition involves locating, negotiating and obtaining a potential development site. By having an expert in the field leading the department, the process is efficiently undertaken to minimise risk and maximise potential. Some risks associated with acquiring an undesirable site can include factors such as:
- Unrealistic settlement terms
- Misunderstanding of the market at the time of project delivery
- Misleading assumptions regarding the potential financial success of a project
To avoid any risks and reap the full rewards of a successful property development, thorough research must be executed so that a deep understanding of the location, the future profile of an area and any associated factors that could boost or affect a property development are made well aware of. For instance, if the government has plans to further enhance infrastructure in an area, acquiring a neighbouring site could have plentiful opportunities. On the contrary, if new zoning regulations are coming into place in an area and development is restricted to certain amenities, levels and so forth, it could have negative impacts on the final project.
How can a Property Development Company Leverage off Talent?
Sourcing the finest talents in the industry is crucial at every step of a project. From an internal level such as estimating, to an external level such as constructing, the right talent takes a development company to higher platforms. In addition, maintaining and growing a network of industry professionals assists successful property development companies to work coherently and interdependently with other participants in the field- making contracting, hiring and outsourcing a more prosperous end result.
In addition, property development is an industry which relies on skilled professionals across the entire supply chain. Investing plenty of time and attention into executing plans is only accomplished through the right people. This also is made possible through sourcing talents in specialised fields. In doing so, development companies employ those with the adequate set of skills required for each phase of a project.
Committed to quality and built on experience, Cite Group has grown to become a leading property development company in Sydney. Playing the Development Manager role, our structure has allowed us to undertake the research, acquire the sites and source the right talent for each and every project.
Read more about us here.