The developmental initiative is the subject in which the discussion is surrounding the development of a real estate project by its renovation and expansion. The project being considered in the study is a property situated at Bay Street in Toronto. The proposal for development focuses on supplying the real estate market with 2 bed apartments by the redevelopment of the existing building which is 13-storeyed and the addition of 28 storeys on top of it. From the market research for real estate properties, I have learned that there is an increasing demand for such housing properties and a marked deterioration in the affordability of real estate.
Here I have also learnt that the process of redeveloping a building rather than building it in its entirety would guarantee a faster payback of the capital that is invested. It will help to ascertain that the advantage of any favourable market conditions can be taken. I have learnt that the process of appraisal of the property should be conducted in the appropriate manner before chalking out the framework of the developmental process. The land use regulations are reviewed in the appraisal, and the best possible utilization of the property is found out. This is followed by the market analysis of the surrounding market to ascertain the demand for the property developmental procedure. Finally, I have learned that whatever developmental process would be undertaken for the property, it should be conducted in a sustainable manner.
Discussion about the identified challenging factors
The developmental initiative for the property at Bay Street definitely has some challenging factors. The challenge, first of all, lies in the perfect description of the property by taking into consideration each and every parameter relevant in the analysis. These parameters include the general description of the property, the area of the site, the shape of the site and the accommodation facilities available currently. Without the knowledge of these factors, the developmental plan cannot be created since developers need to know the initial condition of the property. Then, there is the ownership of the property and a brief history of the ownership. The appraisal procedure is the other challenging factor in this regard. The inspection of the property should be carried out in the appropriate manner and in the different marketing conditions. In the case of the residential properties, the most difficult obstacle in the way of completion of the projects in the market is the appraisal. There is the incorporation of the new regulations that make appraisals impartial, and it results in the fall in the value of the homes. This is an important challenge that needs to overcome in order to ensure the sustained performance of the real estate sector.