The key stages of property development: From purchase to sale!

The world of property is vast, complex and full of professions with different skills. One of these professions, the property developer, occupies an essential place in the property development landscape. They are responsible for the development of property projects, from the purchase of land to the sale of homes. But what are the steps involved in this process? Let's take a closer look to find out.

1. Land Acquisition: The first step towards project completion

Land acquisition is the first step in the property development process. It requires thorough analysis and real insight to identify the best sites in the right locations. However, not all land is immediately ready for development.

Some land may be classified as 'green zone', meaning that it is not buildable. To make it buildable, the municipality's General Development Plan (PAG) needs to be amended. It is important to note that the modification of the PAG is the exclusive competence of the municipality. At this stage, the value of a plot does not usually exceed €500 per square metre.

This is a critical stage where the developer does not control everything. He has to rely on his expertise and intuition, but he also has to be patient. The risk is very high and that's why some people call it the "casino" stage of the process.

2. Drawing up the Specific Development Plan (SDP): Designing the project

Once the land has been acquired, the next step is to prepare the Specific Development Plan (SDP). The SDP is a detailed document that describes the development project for the land. It can be prepared either by the municipality (SDP QE) or by the developer (SDP NQ), depending on the case. Obtaining this plan can take between 3 and 5 years.

This phase is delicate and can be confronted with various issues such as roads, environment, land registry, sites and monuments and many others. The developer must be resilient and willing to overcome any obstacles to complete the project.

Once the SDP is approved by the municipality and the ministry, the project can finally move forward. But the journey is far from over.

3. Building the infrastructure: Laying the foundations

The infrastructure implementation phase is crucial. This is where the developer has to implement what has been planned in the SDP. The work ranges from choosing the materials to be used, to taking accurate measurements, to handing over the land and paying compensation.

It should be noted that the law requires an agreement at this stage. This agreement, which may sometimes seem formal or superficial, is in fact an essential element in ensuring that the commitments of all parties are met.

4. Planning permission: A crucial validation

In order to obtain planning permission, the developer must scrupulously comply with the PAG. The application for planning permission is made through an architect and must be accompanied by several administrative documents, such as a cadastral extract, an OAI certificate and an EPC.

Once this authorisation has been obtained, the developer can finally start marketing the project. But be careful! It is also important to ensure that all the necessary permits are obtained. Patience is therefore an essential virtue at this stage, which can take at least 3 months.

5. Construction: the heart of the developer's business

Once all the permits have been obtained, the construction phase begins. The developer supervises the construction of the building, making sure that everything is done according to the standards and regulations in place. This is an exciting and stressful time as the developer's vision begins to take shape.

6. Building operations: Making the project happen

Once the building is built, the developer can finally sell it to the end users. This is the culmination of his hard work and the beginning of a new phase in the building's life. It should be noted that the ten-year and two-year warranty is mandatory, while the ten-year and two-year insurance is not.

In conclusion, the work of a property developer is complex and demanding and requires perfect mastery of the various stages of the process, from the purchase of the land to the sale of the building. The risks are many, but the rewards can be considerable for those who succeed.