Guides What Is A Property Developer?

A property developer is typically someone who builds new properties or refurbishes houses with the intention of selling them on. Typically, property developers will have an area of particular interest, such as commercial properties or residential homes. Unlike investors, developers are fully immersed in the world of real estate as a full-time occupation. Even with multiple properties under their belt, developers may find themselves deeply involved in every aspect of a project.

Why Be a Property Developer?

Firstly, there is an undersupply issue with residential properties in the UK presently. Doing the work of a property developer can help to contribute to the housing crisis and in turn help the affordability of houses.

In terms of personal benefit, the average salary of a property developer is £43,000 per year. This is also a career that does not require experience, but there are some skills that would be useful to have for success in this industry.

Skills Required To Be a Property Developer

Developers must navigate complex regulations, negotiate with contractors and stakeholders, and oversee every detail of construction. While they may enlist the help of consultants, developers ultimately bear the responsibility for the project’s success or failure.

As a result of this, being a property developer requires you to be comfortable with uncertainty and risk, as well as have good negotiation skills, and be marketing minded.

Risks and Challenges of Being a Property Developer

Being a property developer does however, come with risks that are important to not overlook. Some of these are external obstacles that might be out of your control.

If there is a house price crash, this reduction in house prices can affect how much money you make. High interest rates can also affect your mortgage or any repayments. Of course, there are general project delays and budgeting issues that mean the build can take longer than expected and can result in a loss of profit.

As the costs rise, materials can become more expensive, and there are possible stock shortages that can be caused by supply chain issues. This can also be a barrier when completing a project.

Legal disputes can also occur over problems like planning permission and land ownership, which can be not only tricky, but expensive to navigate.

Although property development comes with challenge, it can be a very rewarding career that has significant money-making potential. If you want to find out more about the possibilities of property development, get in touch with us today. John Howard has extensive experience as a successful property developer and is happy to help provide industry insights.