Real Estate development is mainly managed as such in which land is put in a useful manner, and fulfills the existing needs and stimuli of growth of cities in such a manner that satisfies and allows the areas to develop to their full potential. With the growth of metropolitan areas and reduction in the size of available land, it is critical for developers to take measures to make the most of every piece of land available.
As a good first step for this type of business, a feasibility study will help in determining the key components, which include the market demand, existing features of the land, location and zoning regulations, as well as financial analysis.
The feasibility study enables the developers to focus on those communities’ concerns and needs while determining whether to build residential, commercial or mixed structure in a specific region. Integration of these features into the design also places emphasis on complying with the zoning ordinances that identify the purpose for which land can be used such as residential, commercial, and industrial. In locations marked for mixed-use, developers can integrate residential, commercial, and retail components so as to maximize the use of space available and provide various services in one site.
Therefore, because of land scarcity in cities; the demand for vertical developments and developments with mixed uses has increased. The high-rise buildings best utilize smaller plots, and mixed-use projects that integrate residential, commercial, and recreational spaces are able to generate multiple types of demand from residents.
This space-saving design increases the project appeal to users such as homeowners and business owners. Another one in the value chain element is sustainability. Bringing in elements of green building—like renewable energy sources, green rooftops, and green landscapes—creates an environmentally responsible development that will attract buyers and tenants who care about nature.
For projects related to affordable housing or public infrastructure, Public-Private Partnerships (PPP) offer even more benefits. Partnering with government agencies could give developers access to tax incentives / infrastructure support / additional funding, lowering costs and increasing value to the community. For example, developers can also optimize density (limited by zoning laws) by building apartments or townhouses as opposed to single-family homes. By this method, units per acre are increased and thereby the land is better utilized but, in keeping with the nature of spread-out infrastructure, over-crowding is avoided.
Another alternative measure approach is transit-oriented development (TOD), which involves the construction of Real Estate close to public modes of transportation to increase accessibility to these areas while also reducing the dependence on personal vehicles.
These are especially appealing for workers that value convenience and shorter commutes. Phased development, where projects are conducted in phases, may also prove useful for big projects as well. This method lowers costs and is adjustable according to market feedback during previous phases.
This ensures that large-scale projects are supported by innovative forms of financing, such as Real Estate Investment Trusts (REITs) or green bonds. REITs combine the funds of several investors to provide a crucial source of finance to the Kenyan Real Estate market which offers developers capital while allowing investors the ability to own a piece of income-generating assets.
The financing aspect is also key, as banks provide 95% of all Real Estate development financing in Kenya, so we definitely need to diversify options. Developers can develop significant sustainable Real Estate that aligns with community needs and market dynamics with a flexible phased approach, an understanding of regulatory landscapes and the use of alternative financing
