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How to design a profitable residential development

A development’s viability starts with reading the land and the market, not with the number of plots.

By Joan Andrés Pérez Cedeño · Published

Read the land before drawing plots

Slopes, natural drainage, valuable vegetation, views, access and neighbours determine which parts of the land are worth more and which cost more to develop. A plan that respects these conditions usually needs less earthworks and offers better plots.

Product and market

Defining who it is for —primary home, second home, rental investment— decides plot sizes, typologies and amenities. A product mix can reduce commercial risk, but each typology must answer demand verified by the developer or its sales advisors.

Sellable, common and institutional areas

Every development balances sellable land with roads, green areas, facilities and any land the authority may require to be ceded. Applicable percentages and cessions depend on current municipal and national regulation for each case; confirm them with the competent authority rather than assuming them from another project.

Well-placed common areas are not just an obligation: they are often the most visible selling point.

Infrastructure and phasing

Water, sanitation, stormwater, power and roads are a major part of the initial investment. Phasing lets infrastructure follow sales, provided each phase works on its own with complete access and services.

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