Commercial Properties Of Commercial Property Development

There are a variety of views on, the property development process. In its simplest form, property development is the process of improving the value of land or building through the development of facilities that meet social, commercial and infrastructural requirements. It is about researching and conducting due diligence into the housing market and develop the right property to meet the demands of this market.

During the early 2000 's, the United States housing market experienced growth at an unprecedented rate, leading to historical highs in home ownership. This surge in home buying was the result of multiple illusory financial circumstances which reduced the apparent risk of both lending and receiving loans. However, in 2007, when the upward trend in home values could no longer continue and began to reverse itself, homeowners found themselves owing more than the value of their properties, a trend which lent itself to increased defaults and foreclosures, further reducing the value of homes in a vicious, self-perpetuating cycle. The 2008 crash of the near-$7-billion housing industry dragged down the entire U.S. economy, and by extension, the global economy, with it, therefore having a large part in triggering the global recession of 2008-2012.

Where there is darkness there is ultimately light and the various homeownership opportunities under the current economy reflect this notion. Real estate prices

2) What are the advantages and disadvantages of investing in property? Despite economic downturn in recent periods, there are various incentives provided by

As we progress into a time of record clearance rates and housing prices, further research is required to understand if foreign investment is directly effecting the Australian property market and more specifically:

• Rents for each of the properties has rise between 10 to 18% in the last 12 months and is

In recent years, what can only be described as extremely rapid growth has occurred in the London property market. With a present average house price of £458,283 compared to £179,492 for the rest of England and Wales (Land Registry, 2015, pp. 3-5), London is an interesting case study for analysis due to a consistent 9.8% ten year growth average (Knight Frank , 2014). Something demonstrated in Figure 1, which shows property price percentage increase from the twelve months prior to December 2014. With such levels of growth, it is easy to conceptualise London’s attractiveness to investors, particularly that of foreign origin from less stable countries.

The financial crisis in America had spread to Europe. Banks in the UK bear the greatest impact from the credit crisis sub-prime housing loans in the U.S. For example, Northern Rock Bank had a bad debt account of up to 191.6 billion U.S. dollars in July 2008 and the Bank of England had to pump 27 billion pounds to rescue Northern Rock Bank. At the end of September 2008, there were some other big banks in Europe such as Dexia and Hypo Real Estate falling in the crisis and these banks were rescured by the governements throught financial bailout. (Alexander, 2008)

The lack of money became so bad in the US, UK, and Ireland, that the government had to bail them out. the realization of all this by the public lead to a complete loss of confidence by consumers and investors all around, this lead to less spending and investing. all this lead up to something called a credit crunch. a credit crunch is a sudden shortage of funds for lending. the credit crunch was driven by the bad handling of loans on mortgages that led to a rise in defaults and sub prime mortgages. these mortgages were in america, but the downturn was able to spread throughout the entire globe. people with poor income and poor credit were getting huge loans for mortgages that they werent able to pay back. a cause for this was probably due to the huge incentive for mortgage brokers to sell mortgages at high prices because that's how they got paid, and that played a huge roll in the rise of mortgage defaults. mortgage broker borrowed money to be able to lend mortgage, the lending was not financed out of savings accounts. for many of these mortgages, there was a 1 to 2 year period of low interest rates, at the end of these periods, interest rates rose dramatically, not allowing people to afford the mortgage

The “Great Recession” is commonly used to explain the massive economic contraction that occurred in the United States during the fourth quarter of 2007. However, the actions of the United States spanned to other nations, leaving massive effect on the global economy. One nation that took on serious financial burden during this recession was the United Kingdom. This nation first faced the effects of the Great Recession beginning in the first quarter of 2008. Overall, the initial mass effects on the nation can be attributed to the nation’s reliance on the financial sector. In fact, after partially stabilizing in 2009, the country struggled with a double-dip recession between 2010-12, and continues to struggle with some of these effects.

Real-estate investment has represented a wide portion of this fixed assets investments. In fact, this industry, as a driving force for national economic growth, received more policy funding than before the financial crisis. It is important to note, however, as Jianping Y. and Chao S. (2011, pg. 231) point out, that the investment-led recovery is the result of government investments (direct or not) more than the ones from enterprise sectors.

The Western market for industrial activity is to be benefited by the advances in infrastructure targeted towards transport. This has been visible through land value rises and net face rent rises that are currently undergoing construction. 6.7% land value average was seen in 2016 for the Outer West, attributed by infrastructure advancements including WestConnex, M12 Motorway, and NorthConnex. A limited supply stock in the Inner West has contributed to land value rises in the area and as a result, investors are opting for Western market opportunities. This can be seen through the recent investment made on a Minchinbury site by Logos during early 2017 with a yield at 8.6% and costing $161million. Mirvac’s investment of a Padstow building for $30.2 million also recognises the risk willingness by investors for unoccupied properties. As competition increases for attracting tenants so too has incentive levels from 8- 10% to 15-20%. Private land owners appear to be favourable for tenants who seem to prefer lower face rents. The development in western markets in the coming years is believed to be from rises in demand for pre-lease space by tenants, and due to portfolio growth of institutions from acquisitions for

The United Kingdom experienced early effects of the global financial crisis that burdened nearly every developed country in the world. The most commonly agreed causal mechanism for the burgeoning of this global credit crunch was in the subprime mortgage securities originating in the United States and spreading to other nations.


As a German family moves to London for work with a bank in The City, they ask for advice on how and where to live in London. 
From an estate agent’s view, this report looks into the London housing market, presents advantages and disadvantages to investment options and recommends a property for the family.

With reference to one property development site within the City of London, critically appraise the extent to which that development delivers successful modern property development whilst at the same time respecting the historic sense of identity of the City of London as identified by Glinert.