Introduction
There are a number of factors to consider when selecting a location for a property development. The location could be considered one of the most important factors to consider when planning a development.
Perhaps the most important factor to consider would be the physical practicality of the site. Asking the question “is this physically possible” is an important starting point when selecting a site for your property development. While a site may be located in the perfect position, the development will not work if the property cannot be developed on the land. For instance, if there is a property located on a very steep slope, it may not be possible to construct a skyscraper as the slope will be too steep to develop without running into unplanned costs.
In addition to this, a site of 100 sqm will not be able to fit a development that requires 1000 sqm of space. Moreover, the layout of the site is important as a site that is L-shaped may not be the best site for a development that will be square. By considering the layout of the site, developers can ensure that they are achieving maximum efficiency in terms of the layout of their development.
The demand for property is an important factor to consider when assessing the viability of a specific location. Some areas may have a lower demand for specific properties than others. With this in mind you would not develop a property in an area with a low demand for that type of property. For example, if you plan to build a shopping centre, you would want to build it in an area where there is a high demand for shopping centres. This would be influenced by a number of factors. Firstly, the density of the population would be an important factor to consider. The more densely populated an area, the higher the number of potential customers in the area.
You would not want to build a shopping centre in an area saturated with shopping centres. This means that you would try to locate an area with few or no shopping centres in order to reduce your competition for customers. Another way to look at this is through the average income in an area. Generally speaking, you would not build a property development where the average house price is exceptionally high in an area where incomes are exceptionally low. In order to ensure there is demand for the type of property you are building, you would want to ensure that the average income aligns with the value of the properties being developed.
The cost of the land should be adequately considered when evaluating where to develop a property. Developers should ensure that they have sufficiently evaluated the cost of land for their development when selecting an area to develop. Overpaying for land would result in a higher overall cost for the development, which could reduce the developers profitability. In addition to this, the developer should consider the impact of planning approval before purchasing the land. If the developer plans to build a shopping mall in an environmentally protected area, it is likely that they will not secure planning approval and the development will fail. It is therefore important that the developer factors in the cost and possibility of obtaining planning approval prior to property development finance investing in land for the development.
The developer should consider the accessibility of the site prior to beginning the development. The accessibility of the site can have a big impact on the use of the site. An example of this would be a site in the centre of London. This site would be restricted in terms of access as there is often heavy traffic in London. Developers would have to factor in this traffic when planning a project timeline. The traffic would impact the delivery and removal of materials and may have an overall impact on the completion date. On the other hand, the climate should be considered prior to development. In areas with higher than usual rainfall, or especially harsh conditions, developers should consider how this will impact their development on a cost and timeline basis.
Conclusion
There are a number of factors to consider when evaluating a site for a development. It is important that the developer has adequately considered all these factors prior to beginning the development.
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