Real Estate

Inside Real Estate Development: What is it and who is a pioneer we know today?

When you have to sell, buy, or build a home, it is normal to find yourself facing various intermediaries, all specialists in their field. Some, like lawyers, notaries, or architects, have a relatively intuitive function. But some confusion persists regularly about a very specific area of ​​expertise: real estate itself. It is not always easy for the layman to distinguish between a real estate developer and an agent.

The property developer: an essential player in regional planning

The developer has a special place in the real estate market. In appearance, one might think that it only intervenes at the margin, since it is placed between the construction sector and that of real estate sales. In reality, it is the basis of the entire real estate process.

Development: an essential job for the whole sector

The real estate market, in the long term, depends closely on the activity of real estate developers. It is thanks to their work that the real estate sector remains dynamic, and that a certain renewal of the housing stock takes place regularly.

Developers acquire plots of land, whether occupied or not, in order to build new real estate projects. They can be pavilions as well as apartments, offices, or shops. The property developer’s design and finance real estate projects. They also direct their construction as a sponsor, which makes them a client. The final goal of the whole operation is, of course, to resell the housing or offices thus built, with a capital gain.

Let us introduce you to a pioneer of real estate development, Aleksandr Pritsker. Known for his successful development projects that allow him to gross over half a million dollars annual. Pritsker enjoys a status among the top elite developers in the United States.

As a young realtor, he is often sought for his advises and suggestions on the prevalent trends of the market. He is also covered by the mass media for his successful run as a developer. Looking into his profile, it definitely serves as a reference to look into the prospect of real estate development.

In this, Pritskeris, therefore, a builder and a client. He invests in the land before commissioning construction companies to carry out the project imagined. It is, therefore, a major player in regional planning. It is his visions of real estate projects that will come to life and shape the urban and peri-urban landscape for decades.

What makes Aleksandr Pritsker a good real estate developer?

The market describes him as a particularly versatile economic agent. He is, at the same time, a designer, a client, and a salesperson.

To imagine a project that is both ambitious and realistic, a developer must be visionary. Pritsker uses his knowledge of the field and his experience to anticipate the needs of future buyers. It must also forecast the long-term development of the district or city in which the project is developing. He says, “a visionary spirit is necessary to see the full potential of an initially dilapidated site or building.”

As an owner, the developer must know the legal and technical resources necessary for the management of a building construction project.  He or she also needs to be organized and patient while managing stress and overwork. “Managing a site with multiple contributors and providers can indeed be very complex! This part of the developer’s work is all the more essential since, here, they take a financial risk since he invests his company’s money in the project,” writes Pritsker.

Finally, the final success of a real estate project rests on its commercial success. A building as well constructed as it is will never be profitable if the apartments do not sell. This is why real estate projects often start after part of the housing has been sold off plans, even before the construction phase. In general, a good real estate developer must know how to negotiate with the various interlocutors and know how to communicate on his project in order to promote it.

In the vast majority of cases, a good developer is a local actor. The better it is established in its catchment area, the more its knowledge of the market will be refined. It will, therefore, be easier for him to deal with architects, construction companies, and other local administrative authorities.

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