6511 BEKLDevelopment

Projects (Part 1)

Module Learning OutcomesAfter completing the module the student should be able to:

1 Demonstrate the ability to undertake in-depth investigative projects, working as an individual and as a member of a multidisciplinary group.

2 Critically evaluate the role of the chartered surveyor in contributing to the completion of a site specific project.

3 Demonstrate the ability to prepare and present a project report of professional quality.

4 Undertake site surveys and market research to investigate development feasibility.

5 Analyse and critically compare development scenarios from a sustainable development perspective.

6 Analyse and evaluate the impact of constraints including financial, legal and planning policy on development projects.

7 Analyse and evaluate the impact of current planning policy and legislation on development projects.

8 Reflect on and evaluate the development of relevant World of Work (WoW) skills.

Individual ProjectTeaching leader: Muhamad Hilmi Bin

Mohamad @ MasriFocus on:

The development process;Market research and site analysis;Development feasibility;Development funding and finance;Development marketing;Planning policy and planning application

process.

THE PROPERTY DEVELOPMENT PROCESS

Project Aim & Objectives

To investigate the development journey from inception to completion

Distinguish phases of development process.Objectively assess property development proposals.Appreciate role of market research in development.Understand development constraints.Critically evaluate a development proposal.Formulate a disposal & marketing strategy.

Why Develop?

Investment OpportunityFinancial AssetCommunity Benefit.

The Development Process

Complex framework of sequential activities Brings land, players, resources, finance and

expertise togetherFit together like jigsaw.Development has flexibility to adapt to changing

circumstances.Development has to work within constraints:

legal, planning, financial and physical.Completed scheme is shaped by the process of

development.

The Finished Product“Change of use on land or

of buildings through new or altered buildings in a process that combines land, labour, materials and finance.”

What does development mean to the developer?Opportunity Innovation / VisionSpeculation – gambleAspirationsIdeasRisk

Recognising gap in the market.

Being in right place at the right time.

Making the project happen

Market ForcesEconomic forcesTechnologyDemographic influencesEnvironmental IssuesLegalPolitical

Getting the Process Started

Recognising the market, identifying the GAP.Knowing when, where and what to develop.A changing market can be recognised by the

following factors:Rising rentsShortage of spaceRising capital valuesEconomic GrowthImprovement in standards/technologyObsolescence/depreciationFinancial incentives.

Key Development FactorsPopulation Statistics.CommunicationsEmploymentIndustry and TechnologyGlobalisationQuality of LifeProperty Profession

Market Constraints

Shortage of suitable property.Existing portfolio issues.Availability of finance.General economic conditionsShortage of skilled labour.Government instabilityPolitical/environmental issues.

THERE IS MORE TO DEVELOPMENT

IT’S ABOUT THE RIGHT IDEA, NOT JUST THECONSTRUCTION!

WITH A LITTLE IMAGINATIONANYTHING IS POSSIBLE!

The Development ProcessBIRRELL:

Opportunity / Site Identification

Market AnalysisSite investigationFeasibility StudyProfessional AppointmentsFinancing

Planning ApplicationSite Assembly / PurchaseDesignTendering / ContractsConstructionPromotingLetting / Sale

The Development ProcessCADMAN:

InitiationEvaluationAcquisitionDesign/costingPermissionsCommitmentImplementationLet / manage / dispose

SUMMARYIndividual element of Development Projects module

is focussed on Development Process.Different stages will be considered during the year

with the emphasis on student completion of tasks at regular intervals for presentation, discussion & feedback.

Some group work in semester one but all assessed work for this part of the module is individual based.

Useful references: David Isaac et al (2010) “Property Development” and John Ratcliffe et al (2009) “Urban Planning & Real Estate Development”.