Implementing land development schemes
In the developing culture there is an indispensable need of Land Development, which focuses primarily on converting the pre-existing land into something useful for development purposes for example converting factories into condominiums; this also involves changing land-reforms from a semi-natural estate into lots, typically for the purpose of building homes. The prudent landowner or developer on any project will want to maximize profits and minimize risk thus he will try to control his cash flow as well.
This means identifying and developing the best scheme for the local marketplace, whilst satisfying the local planning process. Essentially, Development Analysis puts development prospects, and the development process itself, under the microscope, identifying exactly where enhancements and improvements can be introduced. These improvements aim to align with best design practice, political sensitivities, and the inevitable social requirements of a project, with the overarching objective of increasing land values and profit margins on behalf of the landowner or developer.
This involves up-surging land reforms from an existing state to a more upgraded state for the purpose as well as dividing real-estate into small areas so that they can be used for the purpose of building homes. Thus there are several projects initiated in this regard from time to time that results in equitable sharing of benefits as well as sustainable developments.
Real Estate Development is a multipronged business encompassing activities that amalgamates a mixture of renovation, release as well as purchase of raw land to others. Developers buy land, finance real estate deals, build or have builders build projects, create, then modify it so that they can be sold to others; this gets both the builder and buyer a profit. The builders get a fair advantage to even construct a plaza on the raw land thus they can set-up a complete complex with both living area as well as commercial area in the same place. That further accentuates the value of the place.
Residential Subdivision, condominium and commercial developments
Condominium development including conversions
Joint-ventures, limited partnerships, ownerships and mixed-ownerships
Selling and buying of the commercial as well as non-commercial property.
Mortgage financing
Advice to Property management
Ground leases
Purchase and sale of commercial and industrial properties
Security for loans
Land acquisition and assembly
Taxation of real estate
Land development and subdivision
Zoning matters
Landlord and tenant remedies
As stated earlier one of the most powerful tools that a government has to intervene in land markets is land development. A government has two options for its intervention: it can either develop land itself or it can promote land development through the private sector. Experience has shown that direct government development of land has not been very effective. Long delays due to bureaucratic procedures, poor quality of construction, lack of coordination between different agencies have been some of the reasons for the inefficiency of governments in land development. As discussed earlier delays in providing serviced land increase rather than decrease market distortions.
In a market economy, the government’s role should not be to provide goods and services but rather to enable or facilitate other actors, be they commercial or community-based, to be the providers. Government should reserve its interventions to regulating the market to ensure that it is competitive, sustainable and equitable.
A land readjustment scheme is typically initiated by the municipal or the national Government designating an area which is about to be converted from agricultural to urban land use. A subdivision plan is developed for a unified planning of the area. Provision of infrastructure and services is financed by the sale of some of the plots within the area, often for commercial activities. The original landowners are provided plots within the reshaped area which, although smaller in size, now have access to infrastructure and services.
Coordination of land development policies between municipalities and country governments; annexation based of local referendum; urban growth boundaries and infilling urban land redevelopment, resource lands tax deferral; and right-to-farm legislation are all management techniques designed to reduce land speculation and land conversion. While each state approaches land management issues differently from their respective legislative standpoints they are responding with a commonality of purpose.
Thus, land-development is an imperative part of the real-estate and with land development one can make beneficial use of the existing land.
Pankaj Kumar Jain, Director, K World Group
The views expressed in this article are author´s own
