Property development – or real estate development – is the business of buying land with the intention of using it to build residential properties. So, quite literally, it refers to the development of property.
Property Development in South Africa
In South Africa, property development revolves largely around the provision of housing within an affordable price range – for those who struggle to afford housing. With the commitment of the initial investment, your family is given a home.
JNK Properties has observed the rising demand for property within a certain price range. In order to fulfil the apparent housing needs, the land is being bought for the development of affordable housing. However, there are certain steps to be taken before the homes can be built.
Step 1: Inspect feasibility
First, the land needs to be inspected to see if it can support property and whether it is suitable for people to live there comfortably. There needs to be access to electricity and plumbing and the land itself needs to be evaluated to determine its capacity to support development.
What is potentially the most important factor is obtaining a township proclamation and water rights. It also needs to be ascertained whether bulk services will be made available. For residential properties, this includes:
- Safe water and sewage system
Step 2: Finance the project
The property developers take on a significant risk by financing the project. In some cases, they receive grants, sponsorships or investors to help carry the potential financial burden. They invest in the properties and in their ability to sell the properties to those who require housing.
Step 3: Conduct an impact assessment
This will determine if you may build on the property without harming the ecology of the location. You will only be given the go-ahead if the impact that you will make on the environment is not detrimental.
Step 4: Purchase the land or property
Once the land has been deemed feasible and the cost has been estimated, the project can continue and the purchase can take place. The land will be bought either by the property developer and his or her partners or by whoever is financing the project.
Step 5: Involve a town planner
Involving a town planner is primarily to change the status of the land from unclaimed to residential, commercial or industrial. This makes the developers answerable to the zoning laws set out by the Section 125 Amendment Scheme.
Step 6: Construction
Now, the actual construction of the homes can begin according to the specifications laid out by the town planner and registered home builders.