A successful Property Development project doesn't just happen
You need to be aware of all issues upfront and manage risks accordingly
Property Development Due Diligence Report
Why you need a thorough and actionable Property Development Due Diligence Report
A property development due diligence report is essential for evaluating whether your property development project and property investment will be profitable and secure.
Property development due diligence involves a review of project plans, existing documents, and financials to assess the risks and financial performance of a real estate development project. Through due diligence, property owners, investors and developers can make sure that they are making a well-informed decision about the potential returns of a project.
Who is the Property Development Due Diligence Report for?
What is involved in a Property Development Due Diligence process?
Due diligence typically starts with the review of the project plans, zoning regulations, existing documents, and other pertinent requirements. Depending on the scope of the project, this may involve obtaining a zoning permit or other building permits, researching the local market, evaluating the financials on an ongoing basis, and conducting environmental studies.
It is important to have an experienced team to guide the property development due diligence process, as they can help identify potential risks or opportunities that may not be obvious at first glance.
The next step is to conduct an appraisal. This involves evaluating the value of the property in accordance with the local real estate market, the project goals, and potential risks and rewards. The appraisal report will also include an evaluation of the development cost and estimated value of the finalised property development project.
Once the financials have been determined, we then begin the process of running legal checks. This involves a close examination of all documents related to the property development project, such as contracts and leases, to make sure everything is in order.
Finally, we review the project plans, conduct background checks on the property developer or construction builder, identify construction risks, verify construction permits, and understand the project timeline. Depending on the scope of the property development project, this could involve additional research into the local market, such as pedestrian and retail surveys, traffic analysis, and infrastructure evaluation.
Property development due diligence is a vital process for any property owner, property investor or property developer. It helps you understand the project, identify risks, and make a more informed decision about their investment. With diligent research and knowledgeable advisors, you can mitigate risks and increase their chances of making a successful return on your investment.