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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