Uploaded on Feb 14, 2025
This comprehensive look into property development finance challenges helps stakeholders prepare for potential risks and navigate the complexities more effectively.
Challenges Faced in Property Development
CHALLENGES IN
PROPERTY
DEVELOPMENT
Land Aquisition
HIGH COSTS LAND DISPUTES
Rising land prices make it Ownership disputes
difficult to acquire prime or unclear titles can
locations.
ZONING delay projects.
LRoEcSalT zRonICinTg IlOawNsS limit the
type of developments
allowed.
Regulatory Hurdles
PERMITTING DELAYS BUILDING
Long approval processes KCeOepDinEgS up with
for permits slow down changing regulations
progress.
ENVIRONMENTAL or unique
requirements can be
REGULATIONS challenging.
Compliance with
environmental standards
adds complexity and
costs.
Financing
HIGH CAPITAL RISING INTEREST
REQUIREMENTS
Property development RATES
demands significant
upfront investment. Increased borrowing
LENDING CONSTRAINTS costs can strain the
project budget.
Banks may impose strict
terms or limit financing
based on market
conditions.
Market Uncertainty
ECONOMIC FLUCTUATIONS VOLATILE
Recession risks, inflation, or PROPERTY
shifting consumer demand
may impact profitability. CMhAanRgKeEs TinS property
SUPPLY CHAIN values or rental
demand can affect
DISRUPTIONS
Banks may impose strict returns on
terms or limit financing investment.
based on market
conditions.
Project Management
COST OVERRUNS COORDINATION
Unforeseen expenses, like ISSUES
rising labor or material
costs, can escalate the Managing multiple
bTuIMdEgLeItN. E DELAYS contractors and
stakeholders creates
Delays in construction or logistical challenges.
external approvals can
extend project timelines.
THANK YOU
Visit:
Silver Oak Capital
91 Wimpole St, Marylebone, London W1G 0EF, UK
https://www.silveroakcapital.co.uk/property-development-
finance/
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