As it relates to real estate, development is a form of investment, which involves the application of capital and other resources to create a new product. It is an investment that entails foregoing present consumption in anticipation of future/long term benefit. This is an activity in which capital is sunk either for provision of new physical structures or for the re-development of old ones. The chief motive behind such venture may vary from the securing of regular inflow of income over a number of years to the provision of lump sum capital to facilitate the take-off of another project and further allow for the enjoyment of the special attribute of investment in land which is of joy of ownership and meeting of social needs. Other definitions of ‘development’ with regard to real estate are as follows:
- Section 12(2) of the British Town and Country Planning Act of 1947 defines development as the carrying out of building, engineering, mining or other operations in, on, over or under land or the making of any material change in the use of any building or other lands.
- 155, 1948 of the Laws of Nigeria also defined development to include any building or rebuilding operations and any use of land or any building that was last used.
- Lichfield (1950) defined development, with relation to land, as the process of carrying out the constructional works which are associated with a change in the intensity of the use of land or with its buildings or with a change with a re-establishment of an existing use. Such development may include the opening up of entirely new areas for settlement, such as new neighbourhood, towns, the development of vacant sites in already built up areas, refurbishing or remodeling or complete redevelopment of existing buildings, construction of reservoirs, laying of fields, constructions of bridges across major rivers, new roads etc. Each of these activities constitutes property development and each may be considered a complete development. The essential characteristic and common factor in each of these activities is that it goes through a process which is aimed at satisfying the need for usable space and transforming space from its existing form to a different state with a view to satisfying existing or projected needs or demand and it is a production process or a phase in the production process. It is this process or range of processes that is generally referred to as property development.
Property development is defined as follows:
- In United Kingdom, property development is defined by Statute in the Town and Country Planning Act 1990 section 55 subsection 1, as the carrying out of building, engineering, mining or other operations in, on, over or under land, or the making of any material change in the use of any buildings or other land’.
- In Nigeria, property development is defined by Statute in Section 91 of the Nigerian Urban and Regional Planning Decree No. 88 of 1992 [NURPD] as the carrying out of any building, engineering, mining or other operations in, on, under or over land; or, the making of any environmental significant change in the use of any land or demolition of buildings including, the felling of trees and the placing of free standing erections used for display of advertisements on the land.
- Property development is the process of dividing raw land into plots, installing street and preparing for construction of the improvement; … the process of carrying out construction works with a change in the use of land or with a change in the intensity use of land or with a re-establishment of an existing use or uses. Such works would include the alteration, erection, or re-erection of building and also the construction of river and sewer, the building of river wall or the laying of playing field, among others (Lawal, 1999).
From the above definitions, property development could be regarded as any improvement made upon land, which may be either bare land for development; or partly developed, or one on which there is an obsolete structure. In concrete terms, property development relates to the carrying out of works involving a change in the physical structure, and in the type and intensity of use of an existing property. According to Dominy (n.d.), the ‘wider range of potential property development activities’ includes the following:
- Construction of brand new buildings on virgin or ‘Greenfield’ lands.
- Complete demolition of existing buildings and their replacement with entirely new buildings.
- The adaptations of existing buildings by way of re-design to make them more suitable for their existing use.
- The adaptations of existing buildings by way of re-design to make them more suitable for an alternate use.
- The adaptation of existing buildings to increase the amount of useable floor space – commonly referred to as ‘additions’.
- The adaptation of existing buildings by way of refurbishment thus making them more suitable for their existing use or an alternate/adaptive re-use; in a heritage context, by improving the quality of building materials, finishes and fit-out.
- The adaptation of existing buildings to make them comply with contemporary statutory requirements, Building Codes and fire-prevention regulations.
- Rural applications – especially in the area of pasture improvement, land clearing for new pastures, installation of drainage systems, and so on.
Types of Construction (Source: Random House Word Menu)
· bricklaying – art of building structures with fired clay blocks cemented together into walls · bridge construction – process of building structures that span waterways or other geographical features · cabinetmaking – construction of finished woodwork and furniture · component building – construction from standardised, prefabricated parts · construction – systematic devising, forming, and building of something with parts that fit together · dam building – construction of barrier to water flow · earthmoving – excavation of ground, esp. for highway or building · excavation – formation of large hole or cavity in earth · fabrication – making or constructing of something with parts that must be assembled · finishing – applying outer layer and decorations to structure · foundation – construction of base or support for structure · frame construction – building a structural framework with wood, rather than masonry, steel, or concrete · framing – process of using a wood frame for construction · general building – construction of residential and commercial buildings without specialized features · grading – moving earth to form smooth, even inclination, esp. for roadway · heavy construction – building of large-scale structures with complex and powerful tools and machinery · highway construction – building of paved roadways · home building – construction of residential buildings · HVAC – heating, ventilation, and air conditioning installation · insulating – installation of insulating materials · landscaping – development of land and foliage into decorative, useful arrangements · masonry – building with stone, brick, or cemented elements: now also refers to plaster and concrete · modular construction – design and building with units of standardized length and size · painting – application of paint to finished surfaces · platform framing – building process in which each story is framed and constructed independently · plumbing – installation of water supply, drainage, and sewage system in buildings · post-and-beam construction – wall construction of upright posts and crossbeams with planks laid crossways on beams · prefab building – construction from standardized, prefabricated components · remodeling – modification of existing structure to new needs or designs · roofing – construction of protective top layer of building · steel-frame construction – building a structure on a reinforced steel rod framework · tilt-up construction – building method in which concrete walls are cast on site in horizontal frames, or wooden walls are preassembled, then lifted into final, vertical position · timber framing – frame construction with heavy timbers as posts and beams, rarely done in 20th c. · tooling – work done with one or more tools; arrangement of tools for particular manufacturing process · tunnel building – excavation and surfacing of underground passageways · wattle and daub – construction with upright rods or stakes interwoven with twigs or branches and plastered with clay and straw mixture · wiring – installation of electrical facilities · wood-frame construction – frame construction |
Property development is a multi-disciplinary process requiring team activity; and can be viewed as the use of land in its broadest sense to obtain a satisfactory environment taking into consideration the social and economic needs of the society. It is a creative activity and covers a wide range of processes. ‘Property’ can be looked upon primarily as a usable commodity and “property development” as the process of producing that commodity. According to Frej & Peiser (2003), real estate development is a multifaceted business, encompassing activities that range from the renovation and lease of existing buildings to the purchase of raw land and the sale of improved parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property. Property development will therefore be seen as a generic term which embraces the various processes embracing the allocation of resources in land in various forms or phases in order to achieve optimum utility or profitability.
