Real Estate Developer: Who is He & Traits He Should Have

Developer is a person or organization, which undertakes the work of developing a Residential, Commercial or Institutional building. He is only in the role of Development, say supervision, & Marketing. He is generally not into execution, means construction. He/ They may or may not have experience of Real Estate before undertaking that particular project.

He hires various agencies for various works. He hires requisite staff to get the works executed smoothly. He Puts in his money initially & than goes in for project loan or offers CLP (Construction Linked Plan) to its clients.

His prime responsibility is to ensure that the project is made as it was committed to clients who have booked properties in that project and within the committed time frame.

Traits Of A Good & Successful Developer

1.  One big thing to look in a developer is : Past Track Record

Past track record of owner of development firm if he is a single person or the management if it is a group of people matters a lot. They should have a track of delivered projects in the past, if background is of Real Estate or running the business successfully & profitably if in some other business. He/ they should also enjoy good credibility & reputation in market. He should also have a very strong network with various connected professional agencies, government departments & sellers. These factors are very important for purchasing an under construction property.

2.  Location

He should have a futuristic vision, and with this select project location. This might not be so prominent at the moment but will gain importance as the time passes and become prominent by the time project will be ready for delivery.

He should study what are Government’s plans to develop that area, how infrastructure is going to develop in that area, what is the pace of Residential development in that & neighboring  areas and most importantly plans for commercial & institutional development.

The reason for looking currently underdeveloped land, with strong future development is that this land will be at much lower rates as compared to land in fully developed area. This saving on land cost can be passed on to the buyers of unit as well to increase the profitability.

3.   Sufficient Liquidity

A developer should have sufficient liquidity so as to run the show before the money from loan or customers under Construction Linked Payment Plan starts coming. He should have necessary buffer to meet any contingency/ emergency.

4.   Knowledge of Local Laws

Developer should make him aware of all the laws governing that area. He should ensure that he does not miss out on any law. If need appears to be he can hire a local Lawyer/Architect/Consultant. Missing out or violation of any law can create big problems for the  project at later stages.

He should not only be aware of laws governing project but also laws        governing independent Units/Flats.

5.   Consultants/Contractors he needs to Hire

Broadly speaking a developer is supposed to hire following Consultants/ Contractors at different stages of project :

·      Architect;

·      Land Surveyor;

·      Lawyer;

·      Structural Consultant;

·      Civil Contractor;

·      Electrical Contractor;

·      Plumbing Contractor ……….   & So on

6.   Membership of Developer Bodies

A Developer must take memberships of Developer bodies like :

·      NAREDCO;

·      CREDAI;

·      IGBC;

·      ASSOCHAM;

·      CII;

·         NAR……………to name some.

These memberships not only add to his credibility, but are also a big source of knowledge as they regularly publish their Newsletters, Hold Seminars& Workshops. These are also a big platform for networking with other already developers of the area from whom, based on their experience, you end up learning a lot.

7.   Gaining Knowledge of Latest in Industry

He should attend Seminars & workshops, read journals, books &  articles regularly to keep himself updated about the latest Technologies & Materials in construction using which he can keep the cost at his project at lowest possible.

As an example these days Pre-fab technology for construction is lot in news. It reduces the construction time and many a times lower in cost as compared to traditional brick-mortar construction. So many a developers are shifting to this depending upon the type of construction.

8.   Relations with Local Channel Partners Big or Small

In India majority of the Real Estate sales happen through Channel Partners, having Brick & Mortar office. So you and your team must develop relations with Channel Partners in your area, update them about project details & leave project details with them. Means you should have relations with all channel partners in the area.
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