The real estate market is full of opportunities and challenges. We must rely on data and accurate analysis to make the right decision. Real estate valuation is now easier, especially in real estate development, where its importance has emerged as an essential and indispensable step for any investor or developer looking for a successful and safe investment.
In this article, we will explain how real estate valuation and development contribute to the real estate market.
What is real estate development?
It is transforming undeveloped land and buildings into projects, whether residential, industrial, or even commercial, to meet the needs of the market and consumers and help investors seize opportunities to make good profits. The importance of real estate development is as follows:
- Growing the economy: Real estate development contributes significantly to supporting the economy, especially with the pursuit of Vision 2030 by making the real estate sector one of the sectors that mainly contributes to the growth of the economy. In addition to its role in providing job opportunities, and increases the attractiveness of the real estate market to investors.
- Achieving sustainability: Through the use of sustainable building materials, the integration of green spaces, the use of renewable energy, and the application of environmentally friendly practices, real estate development contributes to achieving a balance between supporting the economy and caring for the environment
- Providing a better living environment: Real estate development contributes through the development of integrated real estate projects that provide comfortable residential environments and modern facilities that meet all the needs of the population. This includes enhancing infrastructure and providing advanced recreational, educational and health facilities, which contributes to raising the standard of living and creating attractive and ideal living environments.
Therefore, real estate development is a key victory in driving the economy and improving the quality of life, as it contributes to building integrated communities, providing advanced infrastructure, and creating sustainable investment opportunities.
What is the link between Real estate valuation and development?
Real estate valuation is one of the important steps on which the success of any real estate project depends, it is not just a determination of the value of the real estate, but a strategic tool that contributes to making better decisions, whether for the real estate developer or even for the investor and the importance of valuation and real estate development:
Preparing a feasibility study:
One of the most important factors linking real estate valuation and development, that real estate valuation contributes to knowing the real value of the land or real estate before starting implementation, to choose the appropriate location, and determine the type of optimal use, whether residential or commercial. Based on the needs of the market.
This contributes to the preparation of an integrated feasibility study, as it provides accurate and reliable data that supports the analysis of potential costs and returns. This ensures the financial and economic feasibility of the project and enhances its chances of success and sustainability before proceeding with implementation.
Off-plan sales:
Real estate valuation contributes significantly to off-plan sales projects, as it accurately determines the price before construction and provides information about the future value of the real estate, enabling developers to set competitive prices that attract investors before building the project.
Determine costs and profitability:
Real estate valuation helps in determining the real costs of developing the project compared to the expected value after construction. This enables the developer to estimate the level of potential profitability and distribute the budget efficiently. With a clear understanding of costs and profitability, resources can be planned more effectively, minimising financial waste and increasing the chances of project success.
Reduce risks:
Real estate valuation helps reduce risk during the real estate development process by providing an accurate picture of a real estate’s value and condition, which contributes to decision-making. What links Real estate valuation and development is its ability to reveal potential challenges in the market or the real estate, allowing developers to plan properly and avoid losses, making the investment safer and more successful.
So, valuation is the cornerstone of a successful real estate development process. Through its ability to determine the true value of a property, the support it provides during a feasibility study, the pricing of units in off-plan sales, and even the determination of costs and profitability.
In conclusion, we can now understand the relationship between real estate valuation and development as it is not only a tool to determine the real market value of the property, but also a strategic partner for the success of the project, and paves the way before even starting the project.
It is important to choose an accredited real estate valuation company in Aain that includes real estate valuation services, evaluation of projects under construction, off-plan sales, and evaluation for budgeting. In addition to market consultations and quality studies, you can make decisions with confidence. Contact us now and move steadily towards the success of your project to achieve the highest return with the lowest possible risk.