The process of modifying an existing structure and building novel structures on it is known as property development or real estate development.
Ali Ata is a well-known name in this category in and around Illinois, and Chicago. He is the owner of the AAIM development firm and has immense knowledge and expertise in transforming properties into more desirable areas of investment.
The properties that can be developed include anything from residents to office spaces to restaurants and retail spaces. A developer has a multifaceted job profile when developing any real estate. He or she is expected to know how to plan, finance the project, design, and arrange a team of people who would work together to give the property a new look and enhance its functioning.
The work of a developer does not end with the development of the property but with the sale of it to a prospective real estate investor. This is applicable to those properties that are multi-family units. If the property happens to be an individual house then the developer can sell it directly to a consumer. Although real estate is one of the most lucrative investment areas, yet a property developer is often faced with several challenges that adversely affect the profits of developers such as Ali Ata.
So that one can overcome the obstacles, it is important to be aware of the probable challenges. The following are among the various challenges that a property developer faces.
Misreading the market
A developer must get a thorough understanding of the economic, environmental, employment, and educational factors of the current market to realize high profits from the deal. Basically, it is crucial that the developer follows the current market trends and make the necessary changes in the property, instead of hoping to create a need among the consumer.
Selection of the wrong site
If and when a profitable site is not chosen can the project developer expect to bag high profits? The factors that a developer such as Ali Ata needs to take care of include: competition, accessibility, environmental risks, design requirements, applicable fees, and planned improvements.
Opposition from the neighborhood
A particular may fail at times due to the opposition given by the neighborhood. The reasons why a particular project may face such opposition are the contribution of the project to traffic congestion, conflicts of interest, noise, the character of a neighbor, etc. The easiest way to handle this is to first understand the possible objections and then design appropriate outreach strategies.
Project permits and approvals
A developer needs to first get a plan approved before beginning the work of development. Following these, there are certain permits too that need to be acquired pertaining to reconstruction, alteration, new construction, demolition or removal of a building, or even the repairing of things. The installation, extension, alteration, or repair of electrical, plumbing, mechanical, and HVAC systems too need permits to be performed.
Apart from the above mentioned, the risks at the job site, the losses of defective designs, and the cost overruns are some other challenges that a developer has to face when handling a project.
