ABSTRACT
The key point about the mode of development to be dealt with in this chapter is that the promoter and the provider of finance are initiating a scheme to produce something over which one or other or both will retain some longer-term interest. Development for investment at the present time is primarily directed towards producing buildings that have a ‘commercial’ purpose – as offices, shops, industrial premises, warehouses, and so on. Property investment has its own particular characteristics. More recently investment in rental-housing development was prevalent in Europe as the Industrial Revolution began to induce mass urbanisation. The implementation of an investment property scheme requires the combination of a number of elements. It is the developer’s task to find and combine these elements in a way that maximises the rate of return on the capital invested. Firms in the construction sector carry out the actual building in accordance with a development contract.
