The property market is one that seems to be in constant flux. Despite the fact that house sales are on the up and house prices are tagging along for the ride, many areas are still seeing both residential and commercial premises standing empty for a significant amount of time. Whilst this may seem indicative of the state of the economy, in reality it is often far more about poor planning and poor marketing.
Whilst it may seem that building luxury apartment blocks will be a great way to attract a wide range of clients and create a tidy profit in the process, if you erect these properties in the wrong areas then they will be out of reach for many in terms of price and not appealing to many others who could move to similar properties in a far more appealing area for a similar price.
When this occurs it is often a case of urban regeneration gone wrong. The ideas are sound and the approach often well meaning, but simply putting new and expensive property in run down or less appealing areas will not automatically turn around the fortunes of an area.
Of course, the land in such areas will be cheaper to buy and in turn develop and so such areas will indeed be more attractive to developers than far more exclusive areas will be. The idea of improving communities may also be extremely appealing, but the approach to utilising property for urban regeneration will need to be extremely well thought through if it is to work.
Those that do want to make such a change to a residential area will either need to study previous successful regeneration projects or seek the help of organisations with a great deal of experience in these areas such as the Pervaiz Naviede Family Trust.
To stand out as a property developer it will of course help to have a certain ‘hook.’ However, just rushing in and choosing to be the first to build luxury apartments in a given area or the first to offer low-cost housing in what had always been a more exclusive area may well backfire. Research will be needed to ensure that the type of property you hope to develop is needed, wanted and indeed cost-effective, both at the front-end and the back-end.
Whether you are developing an area and planning to make money by purchasing older properties at below market price or wish to create a whole new portfolio from scratch, understanding the market, researching similar successful developments and seeking industry knowledge, skills and resources from the likes of the Pervaiz Naviede Family Trust will be essential if you wish to guarantee a decent return. If you choose to forge your own way without such knowledge behind you, not only might you find that you struggle to fill your properties, be they residential or commercial, but in turn you may find that the majority of your money is then tied up and that you are unable to continue with any further development as a result.
