How to Be a Real Estate Developer – Investing in Real Estate

Want to know how to be a real estate developer? Take all the required courses in real estate and get your license to work in this field, and there you go. But what if you want to be more than just a developer? What if you want to learn how to be a very, very successful real estate developer? Well, it seems that that can only come with time, trial and error learning, and years of experience in the industry. But does it really have to be this way? Is there no other way to short-cut through all those years of experience?

There is one obvious way, and that is to learn how to be successful as a real estate developer through finding a mentor, or personal trainer in this same field of expertise. The only problem is that whenever we approach a veteran of the real estate world, we don’t get much in the line of answers. Those who have traveled the long and windy road to success, gaining inside knowledge and the wisdom that comes with experience aren’t all ready to spill their guts about their secrets to those who would simply become their toughest competition.

But here really are those out there who do wish to teach the inside know-how on how to be a successful, well learned real estate developer, and they do so without fear of competition. How do they do this, and where do we find them? The answer to both is through the internet. This kind of distance learning is a perfect way to learn from those who have acquired this wisdom, and for those learned ones to speak freely in educating us in these matters. Finding a personal trainer in this field is worth a gold mine, and with what you learn, you will find many other gold mines to be had in your real estate career.

Dubai Real Estate Developers Revising Prices and Payment Plans Based on New Market Conditions

With an estimated 70+ projects that are now for sale across Dubai, we are increasingly seeing Real Estate Developers revise their offering, prices and payment plans to gain market share.

While the major established developers like Emaar Properties, Nakheel and Dubai Properties Group are still able to sell out projects with relative ease – there are now dozens of smaller, private developers that are building various types of projects across Dubai.

The competition is strongest on the mid-end segment. Hot spot areas of development include projects like Dubai Sports City, Jumeirah Village and the greater Dubailand area. With so much competition in this segment, developers are adapting to the market place with new, innovative campaigns and product placements.

A bit of background; Dubai’s real estate market crashed in late 2008 and between 2009 – 2011, the market corrected drastically with prices declining between 30 – 50% in some cases.

Starting in 2012, mainly as a result of instability in the region (remember the Arab Spring), billions of dollars poured into Dubai – largely being diverted into the local real estate market.

From 2012 – to late 2013, the market appreciated drastically. In order to cool down the market and prevent another bubble, the Government took a number of measures to prevent speculation. An increase in the mortgage cap, doubling of transaction costs and preventing off-plan buyers to resell immediately have all contributed to a slow down.

The slow-down has not been as drastic as once feared. The correction which began in mid-2014 has seen prices decline by 7 – 10% on average for most communities. Many of the small and medium sized investors have started consolidating their positions. Most mature communities have high occupancy rates and now witness less transactions.

The overall market has now shifted towards the off-plan market. Buyers from within Dubai and from overseas are attracted to purchasing on payment plans which minimize cash flow and risk.

Thousands of units have been announced for development since 2013. In the long run, the city will require new housing to counter a growing population and high rental costs which contribute to the high cost of living in the city.

With so many under-construction projects, developers are competing against one another in ways that they have never done before.

Developers are revising prices downwards and in an interesting turn of events, many new projects are now offering payment plans which extend to upto 3 years after completion – a concept which was pretty much unheard of a few years ago.

Good examples of these extended payment plans are projects like Royal Estates in Dubai Investment Park, GGICO’s numerous developments in Sports City and Dubai Silicon Oasis and Al Khail Heights.

Even high-end developments are beginning to introduce flexible payment plans. Fortuna Village, a 30 townhouse development enclave within Victory Heights, has recently offered buyers a chance to pay off their units upto one year after handover on a 6% increase on the purchase price.

According to research done by on under-construction freehold supply, there are 9,000 villas, 6,300 townhouses and 38,000 apartments currently under-construction across Dubai.

Planned Real Estate Development in PCMC – Healing Pune’s Urban Sprawl

What is it about Pimpri Chinchwad and its township properties that is so different from what is happening in the rest of the Pune property market? To understand this, one has to first understand what goes into the formation of a planned city.

The breath-taking residential areas that now dot the Pimpri Chinchwad Municipal Corporation map are not an accident – they are the result of carefully planned social, economic and real estate growth.

Unlike the central areas of Pune, the real estate market in PCMC has been scrupulously shielded from the central city’s ad hoc development style. The vigilance and futuristic thinking that went into this avant-garde satellite city have added a completely new dimension to the concept of residential properties in Pune.

From the very outset, the PCMC planning authorities were determined to avoid the mistakes committed in nearby Navi Mumbai, popularly known as the world’s largest planned township. After all, what began as regulated development in Navi Mumbai soon began giving way to commercialised expansion.

Instead, PCMC adopted a blueprint for smart growth – a blueprint that placed utmost importance to organized urban planning. No scope was given to a nearsighted focus on capitalization on this new area’s development potential – the onus was firmly kept on long-term considerations.

This was to be the city of the future – a place where residents could work, live and relax without any of the constraints that plague the rest of Pune. Slowly, almost imperceptibly, the landscape of this previously ignored satellite city changed. Proposals for faster development were turned down. The master plan stayed in place, and the results are now brilliantly evident.

Today, Pimpri Chinchwad Municipal Corporation is an acknowledged masterpiece of community-oriented real estate development. It has a unique blend of sustainable residential spaces, highly advanced transportation networks, a broad spectrum of employment opportunities, modern housing typologies such as township properties and superior supportive infrastructure. At every stage of planning, this city’s inherent natural, cultural, sociological and economic resources have been carefully preserved.

This incredible growth area is now the most logical option for residential property in Pune today. For home buyers, PCMC is the prefect alternative to Pune’s unregulated urban sprawl, rapidly compounding traffic congestion and disconnected neighbourhoods.

Considering the increasing evidence if rapid urban decay in central Pune, township properties such as those now coming up in Pimpri Chinchwad Municipal Corporation are the truly the New Residential Deal.

However, PCMC is not only about wider, greener spaces, cheaper property rates, improved social fabric and better infrastructure. The establishment of such new growth areas, with modern residential alternatives such as township properties, is a blessing to the Pune real estate market (which has been stagnating within increasingly larger pockets).

At first sight, they only seem to play a role in reducing the urban sprawl and offering home buyers a healthier and more comfortable lifestyle. However, they are also instrumental in creating new urban centres, wherein new business districts create job growth in new directions.

Thanks to the organized nature of their development, they create new and more rational scope for real estate market expansion while reducing pressure on property prices in the parent city.