Smart Planning: The success in the development of real estate projects
In the planning of a successful real estate project, it is required to clearly establish, for each one of its phases, the expectations of the main areas that make it up.
In the planning of a successful real estate project, it is required to clearly establish, for each one of its phases, the expectations of the main areas that make it up. From these are derived the strategic initiatives that are developed throughout their duration:
Direction: This is undoubtedly the most relevant element and consists largely of the integration of the talent structure that will be leading the project.
Here, we must start from the principles of good business management, since in a real estate investment project all the functions of business administration are involved. We must clearly establish the organizational structure and its hierarchies, and the steps to achieve good corporate governance that results in effective decision-making.
The key objective in establishing good management will first be to consolidate the best talent with a high degree of motivation, aligning their interests to previously defined indicators of success.
Economic: In the financial chapter, the ultimate goal is to obtain the highest degree of return on the investment. To achieve this, we must first establish the key profitability objectives of the business plan, and clearly define those that generate value for our type of project. This involves carefully reviewing the strategies for valuing the investment during its life cycle.
There is no doubt that in the planning phase, one must define a project that aims to offer a high added value, determined by the flows that are expected to be received from the asset and with the greatest certainty of the same. The value will always be a result of managing the following ingredients: cash flows, growth, and risk, which may vary over time.
Market: Perhaps the most critical point will have to do with ensuring that the differentiation variables aim to generate value in the market.
In the definition of the commercial strategy, the management team should review the “complete film” and understand that the ideal marketing does not represent a single act in itself, but a complementary force for the commercialization work that will add joint efforts for the achievement of the objectives. The project must have the best strategic market fundamentals and a team with the appropriate knowledge to align sales and marketing efforts to result in an indisputable method.
Design: The main task of the design team should be to create a profitable project that ensures commercial success. It must make the most of its spaces to optimize them, and thus obtain the best efficiencies without discrediting the quality of its operation. Nowadays, it is indispensable that in the process of creation of ideas the design is guided to the sustainable care and to the creation of value with urban sense.
To optimize the potential of the project, the focus of the design will be in several dimensions: geographical context, focus on the class and mix of the product, and role in the operational chain.
The success of the project will undoubtedly be an achievement under a collaborative team context and intelligent strategic planning.
Without a doubt, in the planning phase, a project must also be defined that aims to offer a high added value, determined by the flows that are expected to be received from the asset, with the greatest certainty of the same. The value will always be a result of managing the following ingredients: cash flows, growth, and risk, which may vary over time.