Property Development

Property development, which can also be referred to as real estate development, is the practice of improving or developing a piece of property for later sale at a higher cost than the initial purchasing cost. Property development might thus cover instances when a company or individual buys raw land, with no buildings on it at all, and then builds some construction on it. Real estate development might also refer to an instance in which an individual might purchase a building, and then renovate that building fully, improving it significantly, before attempting to resell it. Real estate development and property development are often specifically kept separate from pure construction, as they involve the entirety of the practice, including obtaining property development finance for property developing.

Property development finance involves obtaining money from some source in order to finance the property developing process. Real estate development is not cheap, and it often costs more money than any individual, or even a company, might have. This means that obtaining property development finance is often an important component of property developing. Property development finance can often come in the form of a loan from a bank, with an interest rate on the loan. Property development finance might also sometimes take the form of receiving financing from a significant corporation, although similarly, such a loan might come with an interest rate to ensure that the loaning company would make some profit in the deal.

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