Putting up a building or a housing estate in the Paris region can be a tricky business. Acquiring land and drawing up plans are not the only hurdles you will have to overcome these days. You also need to consider investment, securing financing, marketing, project management delegation, and insurance, etc.
Our team of architects and builders Methods Studio architects and builders can help you with your real estate project in Paris and its suburbs. From the development of the project to actual construction, from managing works to post-construction management.
These days anyone can become a property developer.Perhaps you have inherited some land or you want to ensure an income when you retire? Real estate is definitely a solution.
Real estate development is by definition simply the sale of a pre-existing or off-plan house or apartment. As you probably know, only in rare cases are people born property developers – most people become one.
It is now easier for private promoters to access the real estate market because low interest rate make it easier for individuals to get into developing and secure loans to finance their transactions.
There are also tax incentives such as the PINEL law which offers individuals tax breaks if they commit to renting their property at a lower rate.
If you are not a professional, don't worry; our team of architects-builders can offer support as you set out on your real estate adventure.
The market is organized into several types of real estate deals in Paris.
Being a real estate developer is no walk in the park. It takes time and patience, but above all you have to know in which market sector you want to position yourself.
As a real estate developer or future developer, you have a choice of three basic categories.
Housing real estate
Most real estate development takes place in the housing sector.This can take many forms. There is the construction of a new building for use as a main residence, i.e. the majority of the inhabitable part of a construction is set aside for houses or apartments.
This sector also covers what we call "renovation-development" in which the program is based on renovating an existing building by dividing it into several dwellings.
Lastly comes the development of hotel residences, notably with “Appart'Hotel” which is a response to a new problem: the arrival of Airbnb.
Our firm can assist you with all types of housing development and we will provide advice in line with your budget, enabling you to launch a project that will achieve your goals.
You can browse examples of projects by clicking link HERE.
Commercial and facilities real estate
The second category is the promotion of medium or large surface infrastructure. In this category, we find the creation of commercial areas that can be in the city center or in business areas.
We would also include the creation of industrial areas with very large surfaces.
Our team can advise you on the procedure to follow for the promotion of commercial premises.
Offices and other tertiary premises
This type of development often includes extremely complicated financial arrangements.
Our Parisian architects and builders can support or accompany you in your project; however the advice of a chartered accountant would also be very useful with this type of project.
What are the main difficulties of the profession?
Real estate developers have all sorts of hurdles to overcome. Here is a non-exhaustive list of problems you may encounter and the solutions and advice provided by our firm.
Construction costs for real estate development projects
A real estate deal must be profitable. The first item of expenditure in property development is, in most cases, construction work. Construction needs to be carried out properly.
Construction needs to be carried out properlyand you will need the services of a project manager to ensure the work is done within budget..
We are the only firm offering a construction price guaranteed by an independent body (QBE). This enables you to anticipate costs and thus consolidate the profitability of the operation.
Using the general contractor system, our construction and architect firm, Methods Studio Architects, can offer you not only a commitment in terms of results,but also in terms of costs.Click HERE to browse our recent “turnkey” real estate projects.
Maintaining control over ancillary real estate development costs
Once the land has been acquired and the construction is in hand, the developer now has to deal with several additional costs. Have you thought of everything?
Our team will work with you to provide all possible help throughout your real estate project. We will support you from the initial design through to implementation.
Having already completed several turnkey projects, we are familiar with the main ancillary costs that can arise with construction.
Does the land have a house or a building already on it? Was the house built using polluting or dangerous materials (asbestos)? Is the land polluted? How do you plan to market your project? Do you know the contractors involved in your development? These are just some examples of questions that we will answer together.
A number of these ancillary costs are not obvious and intuitive. Our architectural firm and our advisers will be able to explain to you what you will need to plan.
METHODS STUDIO is there to save you time with your development.You can delegate certain tasks to us or do things yourself following our advice. A smart and properly prepared real estate project can turn a profit of 8-15%.
As with all our offers, we will adapt to your circumstances to make your project a success.
The burden of unsold products on real estate development projects
Did you know that for a real estate project the greatest risk is not necessarily the cost of construction but the time it takes to sell the last lots?
An unsold apartment or premises may end up selling for a lower price, which will have a knock-on effect on the profitability of the whole operation. If you are left with unsold units you may not be able to repay your loan as quickly as planned, resulting in higher financial costs.
We can help you with marketing your properties as much as we can with constructing them.
The real estate development sector is an attractive one because it is highly profitable. This section of the economy has been growing for several years and represented a turnover of €43.1 billion in 2017 (source FPI France). This is why many people are now turning to this booming and profitable market that is real estate development.
Our team of multidisciplinary architects and builders will closely examine all aspects of your real estate project and ensure your land development or real estate transaction is a success.
The Methods Studio team
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