Real estate development is the type of investment made with appropriate financing as a result of studies such as feasibility, supply-demand analysis, determination of the target audience according to the social and economic situation of a land or region. While designing development projects, it is necessary to manage many complex processes such as determining the key concept of the project, selecting the target audience, and completing the legal procedures.

But there are different types of real estate development, and before embarking on or deciding on a development project, it can be helpful to be knowledgeable about it and to determine which type the project is closer to. So let’s take a look at what the different types of real estate development projects are.

Brown Field Projects

If you already have an existing and cultivated land and you want to carry out your development project on this land, your project falls under the so-called “brown area” development type. Such projects are usually carried out when the existing land or the project on the land is insufficient and needs improvement.

There may be many reasons why the lands need to be redesigned, such as insufficient facilities on the land, high pollution in the area or not being suitable for development. However, such projects can turn into great opportunities to do creative work at lower costs or to make use of an unusable space. Because going to improve, develop or strengthen an existing project will be less costly than working with a project from scratch. Likewise, projects are expected to be completed much faster than new projects, as official transactions, calculations and planning for the property will probably already be in place.

On the other hand, the biggest disadvantage of the projects developed in such regions is that the possibilities of the land are limited compared to the new properties to be purchased, that is, it may limit the possible project ideas. However, optimizing existing land with good project management and planning can be a motivation worth taking action.

Greenfield Projects

Such development projects usually include projects carried out in previously undesigned or agricultural areas. Examples of these areas are unfenced open spaces, undeveloped land in cities, or unused government property.

Undoubtedly the biggest advantage of working in green areas is that you have a lot of flexibility as a project developer, as opposed to working with brown areas. These lands can be seen as unique sites for the realization of a wide variety of project ideas, as they have not been projected before and there is no action to limit the area. Since you will be working on the project from scratch, you will have a lot of freedom in choosing high quality materials for construction, planning the property exactly as you wish.

However, it is a fact that since the project is started from scratch, the processes related to the project will take longer and the costs will be higher. Planning and cost need to be thought through and calculated from scratch in every area such as building design, getting approval, materials and labor.

Residential Development Projects

Such projects are aimed at developing residential real estate. Therefore, the main focus of the projects is to ensure that the structures are properly designed in order to provide users with all the necessary amenities to make home life comfortable. In these projects, you can choose to use a good building design software for the management of the construction, including creating visualizations that include spaces such as the kitchen, living room and bedroom.

Residential development projects are a risk-free and definitive choice in terms of sales goals, as the need for a home is a demand that will never end. On the other hand, housing projects require many details to be managed, from how the buildings are planned to the construction location and pricing policies.