Learn what real estate development is, how it works, and its process. Find out the goal and situation in the Dominican Republic .
What is real estate development?
Real estate development is based on the management and union of various disciplines such as architecture, design, or civil engineering, with the primary objective of generating a successful real estate investment.
How does real estate development work?
It works under a real estate developer, who carries out the comprehensive planning, designs it on paper, and carries it out.
This professional turns an idea into an investment opportunity through processes of innovation and creativity.
Therefore, it is responsible for the following aspects:
- Acquire the property;
- Choose the zoning and layout;
- Have an engineering team;
- Encourage construction;
- Take care of the sale or rental of the property.
In a few words, real estate development operations are based on bringing together talent from different sectors to make things happen.
Is real estate development easy?
It depends on the skills you consider having when investing; it can be very easy for some, but not so much for others.
Here are some skills you should keep in mind:
- Ability to detect business opportunities: in this type of investment, the possibilities can be many, but you can count worthwhile ones on the fingers of one hand.
Therefore, you must have the aptitude to discover a good opportunity and determine your chances of success.
- Problem-solving skills: as in everything, problems are part of the process.
You must be prepared for the expected but also the unexpected;
- Understand the risk: taking risks is one of the most critical parts.
You must make calculations that measure the contingencies associated with the investment and find a way to minimize them.
- Training: evolution is usually related to the search for new methods, generating optimal results.
The topic of real estate development is based on different themes, so you must have professionals like WLHRE.
It is a company with professionals with a long history in constructing and real estate marketing and hotels in Europe and the Caribbean.
The projects are basically dedicated to developing projects in tourist areas of the Dominican Republic.
The real estate development process
Before any real estate market, different stages must be fulfilled.
Next, I will provide you with some steps of the real estate development process:
- Feasibility study
It is the first step and also the most important.
Analyzing and studying the feasibility of a property can tell us about its future.
It helps determine if the objective is achievable, so knowing the following aspects is essential:
- Market study: identifies the opportunities that the real estate project has.
It is achieved through an analysis of the macroeconomic environment, consumer profile, terrain characteristics, etc.;
- Financial analysis: its main objective is to know its profitability and risk.
It is obtained thanks to the measurement, analysis of income and behavior in different scenarios;
- Legal report: real estate projects must have the necessary permits following current legislation.
This includes any type of urban order, land regime, and fiscal provision;
- Soil investigation and topography: a complete analysis is required to verify the topography (it depends on each country) and to start the work;
- Examine the environmental impact: many countries require this type of information, in which you must summarize what impact the construction may have on the environment.
- Project design
The design stage for the building must have the following characteristics:
- Location: starting a project determines the base of the building, and, consequently, the placement of the structures at an aesthetic and engineering level;
- Construction: the plans show the type of design to be developed;
- Road impact: analyze the distribution and if it can affect road flows.
It is the progress of the plans that were designed; therefore, it begins with a budget analysis of the work:
- Soil mechanics: behavior of the layers of the earth’s crust to avoid disasters;
- Typographic Study: finding Stability on the Ground;
- Equipment and materials: sewage, electricity, paving, etc;
- Time: the date on which the project can take to develop.
Once this stage begins, you must control the following variants:
- Green sale: it is the one in which the project is built, that is, it notifies that it is in construction;
- Control in works: control of compliance and verification of budgets is maintained;
- Preparation of work contract: it is summarized as the contracting of the work.
This last step is based on determining the sale or administration of the real estate development.
It includes the closing of contracts and the individualization of each unit built in the residential sector.
Is real estate development a good business?
Even in these pandemic times of recession, real estate development has been one of the least affected by ups and downs in the economy.
According to Investment Guide 2021 Dominican Republic real estate investment:
“It has established itself as one of the most influential in the dynamism of the Dominican economy,
Driven by private initiatives in the development of medium and low-cost real estate projects, commercial establishments, the expansion of the supply of hotel units in the tourism sector”.
From 2010 with 264.1 to 2020 with 387.3, foreign investment amounts to 4,109.7 million dollars.
Real estate demand revolves around various sectors of the national geography, both urban and tourist.
Therefore, real estate development can be considered a successful profession, despite its risk.
For projects to acquire prestige and good monetary scope, it depends on the professionals who accompany you along the way.
World Luxury House has the experience and trajectory of more than 20 years in construction, marketing, and related services.
It covers different products and services such as:
Prepared to manage projects in various destinations, from properties to personalized design adapted to each environment.
It offers the TURNKEY SERVICE, which promotes the delivery of fully furnished units with high-quality standards.
It is responsibly dedicated to all real estate management processes.
They involve financing, promotion, appropriation, intermediation, representation, rental, and sale.
It has a legal team to carry out all the procedures and permits in a reliable manner for all parts of the business.
- Rental pool
It offers clients and owners the option of choosing between a fixed or variable income program, which guarantees a return on investment at different rates.
- Hotel operation
It advises project developers in all phases of the negotiation process; therefore, it focuses on:
- Analyze, develop and evaluate the Hotel Operation plans;
- Promote the interface between the Hotel Operator and the companies, to ensure compliance with the standards required in the contracts;
- Have a specialized team with different review, budget and acquisition preparations;
- Facilitate the entire procurement process with a network of strategic allies to create aesthetic and comfortable environments in hotels;
- Ensure control and assist the Hotel Operation efficiently.
What is the objective of real estate development?
The main objective of real estate development is to meet all the requirements for an investment project to be feasible, legal, and executable.
It meets a building need, providing different business opportunities.
When talking about real estate development, it refers to all management activities and coordination to create a property.
So, this type of real estate business is dedicated to carrying out all the necessary stages to provide people with property.
Real estate development in the Dominican Republic
The Dominican Republic is the fastest-growing real estate country in the Caribbean.
Maintenance costs are relatively low compared to the rest of Latin America.
Tourism is one of the reasons real estate investment in the Dominican Republic has success.
The Central Bank of the Dominican Republic report demonstrates it.
Despite the COVID-19 restrictions, the flow of tourists has made a remarkable recovery.
The month of July has been the month in which there is more significant tourist traffic with a total of 564 thousand, followed by November with 519 thousand and in third place in June with 463 thousand.
For this reason, WLHRE has three projects that develop tourist areas in the Dominican Republic:
- Waves: It is a modern city that will house exclusive sets of residential communities, educational centers, commercial areas, hotels, and different accommodation systems;
- Unique: Like Waves, apart from the exclusive community groups, green areas for recreation, sports areas with a golf course, lakes, etc. also stand out;
- Boca Paraíso: It has a modern architectural design, developed by expert professionals in selecting top-quality materials of European origin.
These projects are located on the best beaches in the country.
What does a real estate developer do?
As we have highlighted throughout the article, the real estate developer is in charge of the comprehensive planning of a real estate project.
On the one hand coordinates:
- Marketing and sales strategies;
- Development ideas on platforms like Excel;
- Formation of a solid team (architects, engineers);
On the other hand, it is also responsible for:
- Explore the land to build;
- Coordinate design;
- Process licenses;
- Seek financing;
- Organize the construction and delivery of real estate.
Developers are like the directors of an orchestra, in which they do not play the instruments, but they do have the responsibility of directing it and its outcome depends on them.
Through this article, you have discovered the importance of real estate development so that we can draw the following conclusions:
- Real estate development is based on the management and union of several disciplines such as architecture, design, or civil engineering;
- A developer turns an idea into a real estate development through processes of innovation and creativity;
- Some skills of a real estate developer are the ability to detect business opportunities, skills to solve problems, understand risk and training;
- The real estate development process is based on: feasibility study, financial analysis, legal report, investigation of the soil and topography, and examining the environmental impact;
- The Dominican Republic is the fastest-growing real estate country in the Caribbean.