Real Estate Development

Real estate development is a multi-layered, complex process that involves:

  • Market research;
  • Highest and best use analysis;
  • multi-layered feasibility study,
    • Business plan and return on investment analysis,
    • Conceptual design and design brief;
  • Project and technical management.

Thanks to its professional staff with extensive knowledge (technical and business), as well as its reliance on external experts with specialized market knowledge and expertise, LCP Development provides coordinated management of all tasks from a single source.

Highest and Best Use Analysis

Relying on extensive market research data, there is an opportunity to prepare a realistic action plan for implementing a real estate development that ensures best return on investment given a thorough utilisation analysis. The primary goal of the analysis is to narrow down the range of real estate development alternatives allowed by local zoning regulations and determine the most profitable options, which can be further analysed in greater depth within the framework of a feasibility study, ultimately leading to the highest and best use of the property.

Feasibility Study and Business Plan

Based on an analysis of the highest value and best utilisation, a detailed feasibility study examines the macro and micro location of the property, its transportation connections, utilities, current technical condition, local construction and other special legal regulations, the property’s current financial indicators, the market for the type of property to be developed, competitors, the size of the optimal gross and marketable/rentable area, the purchasing power of the location, available average specific sales/rental prices, yield levels, the market value of the finished property, the investment budget and schedule, as well as various return on investment types of the project. By comparing detailed alternative concepts, it shows the best performing version and makes specific recommendations for the feasibility, composition, timing, and financial expectations of the project. The feasibility study provides answers to all questions, risks, and feasibility issues that arise in an investment or development project.

Conceptual design and design brief

Following the clarification of the client’s intention and the acceptance of the basic assumptions of the feasibility study, a detailed concept plan is developed that outlines the site layout, building placement within the site, and presents the floor plan with the size and location of all functions within the building. Additionally, the structural, building services, and electrical systems are defined while taking into account the requirements of the regulations, utility supply, and energy concept. As part of the concept plan, sections, massing diagram, transportation and green space concepts are also created, and a detailed designer program is prepared that documents all essential technical parameters in written form.

Project structure and schedule

Following the acceptance of the concept, the necessary steps for the implementation of the project are set, including the detailed survey of the property, tasks related to preparatory work, arrangements for the regulatory environment, selection of designers, stages of design, selection of contractors, and the type and phases of implementation. The stakeholders to be involved are chosen based on references, experience, available resources, and other professional requirements. To ensure a comprehensive overview of the entire process, it is of paramount importance to develop and continuously update a detailed schedule that covers the entire investment from the preparatory work to the turnkey handover.