Developing a property is a good thing, but when a property is developed without feasibility studies, most times such a property is likely to become an abandoned property in no time. If you go round some neighborhood, you will notice some properties that have not been occupied for years, this is largely due to one or two errors in the feasibility studies during the building stage and in some cases, there was no feasibility study, the owner suddenly got money and started building, this kind is referred to as ‘money miss road’.
Feasibility studies in this regard, refer to what kind of building you should develop in a neighborhood given the type of neighborhood, and what problem is that building designed to solve, what is the rate payable and how affordable is such a rate, given the locality, these factors are very important when developing a property. For instance, of what use will a building with stores be in a densely residential area, or a sophisticated apartment in a local vicinity where the locals cannot afford the rate, rather they just stare at the magnificent building every now and then. Many property developers are guilty of these, thus at the end, you see a property just there doing nothing and people around are looking for houses for different purposes.
The property should be relevant to its locality
One major reason why some properties are abandoned is because most of them are not relevant to their immediate environment, a building’s relevance to is vicinity should be considered when developing a property, otherwise a property at the wrong site is more like putting round pegs in square holes, these happen when a commercial building is built in an area obviously set aside as a residential area, these areas may be city centers but they are residential in nature hence no further development can turn such an area into a commercial hub. Also an area can be a commercial hub but yet not suitable for the kind of structure, just imagine a high rise building with elevators in a commercial area densely populated with bungalows stores where almost all the business around are one man to one store business (sole proprietorship), where none will want his clients to get to their competitor before them, no one will want to rent an office in a high rise complex where the client will have to travel on elevators to get to them.
Think Cost, Think Income
When developing a property, it is very important to think cost & income on the side of the developer and the users as well, the developer certainly will spend huge funds and will have to recoup in a period of time, therefore he most consider the possibility of such a recoup, the cost applicable to the rent, can it be afforded given the business climate of the vicinity, when it is a residential apartment, can the income level of the people around afford it, or at best they will just stare at it and wish they could, these factors are necessary if the investor intends to get a return on his investment. See why you need to consult an expert in property development.