While similar to commercial building projects, residential property development is unique in its own right. Both residential property development and commercial building projects have a comprehensive understanding of planning laws and construction requirements. They both know how to add value to a property or piece of land by turning it into a good investment return.
However, the difference is literally down to the type of property they deal with. Residential property developers focus on building, renovating, and converting land or property into homes, apartments, and other dwellings that people can live in. In comparison, commercial property developers focus on developing offices, shopping malls and other leisure complexes.
In this blog, we’ll answer all your questions surrounding residential property development, as well as giving you the reasons why you should choose a developer, such as Finedale Construction, to work on your construction project!
So what exactly is residential property development, and how does it differ from working with a construction company?
What do property developers do?
Property developers are either individuals working independently or as part of an organisation that adds value to a piece of land or property. They are often responsible for buying and acquiring land or property and then developing it through renovation or new build. After the construction work is complete, property developers then look to sell on for a profit or rent out to potential tenants for recurring revenue.
How do property developers add value to a residential development?
Property developers add value by:
Renovating, repairing or improving land or property: property developers often know what is needed to make land or property more lucrative.
Sourcing the land or property before repackaging it: property developers can negotiate the whole buying and selling process, as well as finalising a deal with other developers or investors.
Purchasing derelict land and building residential property on it: they can then either sell the newly built homes or flats or rent them out. If renting is desired, a property developer may choose to refinance, allowing them to regain some spent capital, as the development’s overall value has now increased. Allowing revenue to be retained and a portion of capital returned for re-investment.
Buying a property and converting it: for example, property developers might purchase a commercial property, like an old office block, and transform it into a residential one, such as an apartment complex.
Purchasing a property, demolishing it, and building something new: When a derelict property is not fit for conversion or renovation, property developers will look to knock it down and build something else in its place.
What is the difference between property development and construction?
If you think that property development and construction are the same, then you’re wrong! Although many residential property developers also manage construction projects, they do so much more than the actual building work. From inception to realisation, property developers coordinate and are responsible for all the stages of a construction project.
They usually work alongside others to manage and carry out the entire construction development process. They help to remove the stress of coordinating different timelines, suppliers, and resources. On the other hand, construction companies are like the manufacturers of a construction project, whose only focus is on the erection or renovation of a building plot.
The benefits of joint ventures in residential property development
Starting a residential property development project is very exciting, but it also comes with added pressure. At Finedale Construction, we know from our decades of experience that financial planning and research are essential in running a smooth operation.
Partnering with a credible residential property development firm can help you to maximise your investment. A joint venture will take away some of the added stress of your financial responsibilities, the project scope of your development and organising a workable schedule.
Some other benefits include:
Sharing the risk: by working together in a joint venture, you’ll enable the residential property developer to combine their resources with yours and subsequently share the risks involved with developing a residential scheme.
Having two companies with full focus and commitment: when you engage in a joint venture, all professional parties have a stake in the scheme’s success, often meaning general commitment levels are maintained at a high level throughout.
Varied experience: a joint venture is a collaboration between two professional bodies; this often means different levels of experience are brought to the table. The wider the experience on a residential scheme often results in, the better the outcome.
Why you should choose Finedale Construction when working on a residential property development
Thinking of working with a residential property developer who can convert your piece of land or property into profit? Finedale Construction’s flexibility, eye for detail, and our strong network of trusted partners are the reasons why so many clients prefer our residential property developer services over our competitors.
We understand that managing the construction development process alone can be a stressful and time-consuming process. That’s why our vast experience within the construction and high-value property development market lets us confidently navigate the end-to-end management of your residential building project.
Working with us on your development means fresh, innovative ideas, trustworthy guidance, and a strong network of reliable partners to support at all stages.
Finedale offers the complete package. Why? Our residential property developers can:
Fully manage the construction development process, taking away all the stress of coordinating different timelines, suppliers, and resources.
Lead the construction, redevelopment, or refurbishment of buildings to a high value.
Ensure full compliance with planning conditions and building regulations, liaising will all required professional bodies.
Use design value engineering to maximise value for resale or rental.
So, if you’ve recently purchased some land or an existing property, and are interested in ways in which you can maximise its profit and potential, then we’ll be thrilled to hear from you! Get in touch with us.