Management of Real Estate Projects

The management of real estate projects is related to the urban development of cities, its planning and the response to the needs of a community that in some cases can have great complexities. Nowadays there are real estate projects that can be included in programs or project portfolios whose result from the economic, technical and social point of view is of great importance due to the impact this has on the development of countries and regions around the world.

Historically, this has been a very intense work that has reflected the advances that different civilizations have achieved from the cultural, political and social point of view, and that to date are a reference and case study.

Among the types of projects we can identify are

Real Estate Acquisition Projects. Related to investments made by companies, real estate developers or investment funds, as well as the emergence of “crowdfunding” which is a current trend of open financing worldwide for the acquisition of real estate already built or to develop them.

Construction Projects. A work built from its foundation to its start up and that is finished on time, within budget and according to the defined specifications. These can be large structures such as bridges, hydroelectric dams, oil plants, airports, among others.

Restoration Projects. In which a generally deteriorating building is revived and has a cultural and historical value.

Renovation Projects. Development of updating, new concepts in a property in a partial or total way as part of its advertising or commercial attraction, shopping centers, franchises, even housing use properties.

Non-Constructive Real Estate Development Projects. Most of the times related to change in land use. Historical centers converted into theaters, convention centers, or bookstores, as well as plazas in gastronomic corridors, art galleries, and even markets, or streets converted into pedestrian walkways as part of a comprehensive urban planning that benefits the communities that are part of a city.

Some interesting data that can be found in relation to real estate

The real estate sector is the second largest expense in the income statement of most companies. Thus, in most organizations, the real estate portfolio is the third most valuable or expensive asset.

According to data that are evident worldwide, buildings consume 42% of all electricity – up to 50% of which is lost and are considered the main contributor to global CO2 emissions. Therefore, efficiency and sustainability factors are part of the concepts to be included in the business case, draft and project of this item.

On the other hand, it is important to know that an important factor for the development of a real estate project is its location, the one that gives it the highest profitability, among the location factors to be considered are

  • Means and costs of transportation
  • Availability and cost of labor
  • Proximity of supply sources
  • Environmental factors
  • Proximity to the market
  • Cost and availability of land
  • Soil topography
  • Tax and legal structure
  • Availability of water, energy and other supplies
  • Communications
  • Possibility to get rid of waste, among others.

The Project Manager in real estate projects must have the knowledge, experience and competence to understand and define the interrelationships between the components of project management. Understand the evolution of contractual and human interdependencies in the execution, along with team building and stakeholder participation.

The Project Manager is expected to be adaptable and, in some cases, possess a broad knowledge base in construction advances, technology and alternative methods of contracting, in addition to the concepts of sustainability and efficiency. For more information, check out the Dunearn 386 Condo to get more important information.