The real estate development industry has long been known for its lack of transparency and its tendencies to be orchestrated and led by a small number of powerful Goliaths, others
known as the real estate bigwigs. Rightly or wrongly, some of those networks have inadvertently monopolised and have had a chokehold of the industry by wanting it to remain in an opaque state. This has made it difficult for new blood to enter the market and for existing networks to access the resources and information they need to succeed.
Over the years, their spending clout and branding prowest have kept them at the top in a competitive space like no other. That is not to say this will continue to be a sustainable model in the long term. “End of an era” gives hope to the Davids of the industry and the new blood we alluded to.
There is somewhat of a shift in the air. The market has improved at its fastest pace in nearly a decade at a time of rising expectations for higher standards and transparency. Digitalisation is at the forefront of this exciting turn of events. The advent of digital solutions is beginning to change this into a closer level playing field. New technologies are enabling a more open and transparent real estate development industry, thus making it possible for more would-be real estate enthusiasts to access property investments and development opportunities.
One key area where digital solutions are making a cosmic impact is in property development appraisals. In the property development sphere, the development appraisal is a vital component for any development purposes; vacant plots, derelict buildings, or uninhibited sites are, to a great extent, suited for development appraisals.
To ascertain their value and accentuate their development, the site or property has to be contrasted with its risks, and that is where the development appraisal justifies its existence. It provides an analysis that can facilitate or, at the minimum, supply lenders with information they would need to see when considering loan applications. With that in mind, it can help the property development world to make more informed decisions about where to invest their money.
Another important area where digital solutions have a positive impact is development finance. Digital tools are making it easier for developers to access funding and other resources developers need to complete their projects. This is especially important for smaller developers who may not have the same level of access to traditional financing options as larger networks.
We couldn't and didn't want to stop at providing just an appraisal tool and leave it at that, no sir. We needed it to have the functionality to help with the financial element of the development journey. This is part of our endeavourment that we inserted in our promise to our or would-be clients within all our products.
At Navian, we see ourselves as the anchor, the vision, and the wheel behind how our digital solutions will transform the industry. We foresaw the digital areas we discussed as an objective financial viability test of the ability of a development project. This entails the ability to meet the developer's costs, which include planning while ensuring an appropriate site value for the person who holds the deed and a market risk-adjusted return to the developer in delivering the project. Navian's role in this process is to act as a platform that can assist with financial loan applications and the presentation.
An idea has to start somewhere, and behind every great idea is someone saying, “It won’t work.” Navian’s grasp of a possible course of action wasn’t solely about coexisting in the same space as its competitors or its positions in the industry. It is about nurturing and building on the said idea while playing a part in bringing developers, investors, and lenders together to share command purposes.
As a proven concept, our property development appraisal tool is a financial model that allows developers to calculate the commercial viability of a site. The production of an idea to which Navian continues to show commitment to its industry whilst welcoming new members through digital solutions. This is an ever-evolving journey, but while we continue to develop our solutions, developers are already benefiting from a more effective and streamlined process.
For instance, the acknowledgement of the lengthy due diligence and a precautionary process the developer has to undertake before it reaches the funding phase and to avoid the application being declined, compared to the role of the investor/lender.
While the developer undertakes a multitude of tasks—from identifying potential projects and utilizing Proverest's appraisal system for financial assessments, to negotiating land or building acquisitions and managing construction up to the sale of the development—the investors or lenders simply supply the necessary funds. Navian’s software seamlessly integrate these diverse activities, tying them together in one cohesive package.
The moral of the story here is digitalisation is here to stay, and Navian is leading this journey.