Real estate development is a division of the real estate industry centered around constructing new buildings or renovating existing ones to increase the value of the property while generating a return on investment (ROI). This can encompass the development of a broad range of commercial and residential structures, from apartment complexes and multi-family dwellings to restaurants, offices, and retail spaces. Real estate developers are responsible for overseeing every step of the project, from the initial planning and design stages to securing financing and assembling a competent team to bring their vision to reality. Upon completion, the property is usually sold to a real estate investor, however, if the property comprises individual homes, the developer may choose to sell directly to the end user.
Real estate development can be a complex and challenging industry requiring a multifaceted approach to succeed. Developers must have a clear site visualization, attract qualified tenants, manage construction risks well, identify potential build sites, and adapt to a constantly changing industry in pursuit of their goals. With the advances in drone technology, many of these challenges can be solved, helping developers to streamline their operations, make informed decisions, and stay ahead of the competition.
"While property development can be a particularly lucrative area of the real estate industry, developers face numerous risks and challenges that can derail projects—and profits."
In this article, we will explore five challenges faced by real estate developers and how drone technology can provide solutions to those challenges that will not only increase their ROI but give them a technological advantage as well.
Table of Contents
Drone Aerial View of Construction Site
1. Adequate Site Visualization
Adequate site visualization is an essential part of real estate development as it provides a complete understanding of the intended project site before any construction begins. It allows the developer to consider various environmental factors such as topography, geology, and more, that could affect the construction process. Drone technology can be utilized in this stage of development through aerial imagery, 3D modeling, virtual tours, and interactive diagrams which can be used to create a complete understanding of the project.
"3D renderings are paramount in all phases of the development process from brainstorming to sale."
Aerial Imagery: Aerial drone imagery provides a comprehensive overview of the construction site. Drones equipped with high-resolution sensors can capture images and video of the site, allowing developers to gain an understanding of the site’s topography, bordering properties, and any outside access points the site may have. These images can be used to plan the construction process, considering any potential challenges that may arise during construction.
3D Modeling: 3D modeling creates a virtual representation of the project site. With a 3D model developers can visualize the final product, see the site from different angles, explore different design options, and make any necessary changes before construction begins. An expert drone provider using photogrammetry software creates a 3D model of the site by capturing thousands of images, providing developers with potential design flaws to adjust.
Virtual Tours: Virtual tours provide a unique opportunity for developers to showcase their vision to potential tenants, investors, and other stakeholders, even before construction begins. With the proper software, drones can create a panorama video of the property and process them into a seamless virtual tour. Developers can then see how different aspects of the project fit together, receive valuable feedback from stakeholders, and further refine their plans.
Interactive Diagrams: Interactive diagrams and maps provide a more in-depth understanding of the project site and the surrounding area. Drones equipped with GPS technology can capture images of the site and its surroundings, which can then be used to create an interactive map or diagram highlighting key features such as transportation routes, proximity to key amenities, and other important information that could impact the project’s success.
Related Article – The Benefits of Using Drones for Real Estate Marketing
What's included in YOUR GUIDE...
A Proven Roadmap of Success for Implementing Drones in Construction.
A List of Red Flags to Avoid When Hiring Drone Service Providers.
How to Persuade Your Leadership Team to Leverage Drones on Every Jobsite.
2. Attracting Qualified Tenants
Attracting qualified tenants is a critical aspect of real estate development. The way in which a property is marketed can have a significant impact on the number and quality of tenants that are attracted to the site. In recent years, drones have emerged as a useful tool for real estate developers to market properties to potential tenants.
"Data shows that [real estate] listings with aerial drone images sold 68% faster than those that had only standard photos. Having a drone video helps a home stand out from the competition, giving sellers a much-needed edge."
A key area where drones can help attract qualified tenants is through video tours. An experienced drone contractor can create highly immersive and detailed tours of commercial or residential properties, offering potential tenants a unique perspective of the site and the surrounding areas. These video tours can be used to showcase the property’s features and amenities, giving prospective tenants a good idea of what they can expect. Drones also offer a significant advantage over traditional video tours in that they can provide an aerial view of the property including the surrounding areas, to get a better understanding of the location and the surrounding neighborhood.
Virtual Drone Tour of Industrial Warehouse
3. Managing Construction Risks
Managing construction risks is of utmost importance to ensure projects are completed on time and within the designated budget. One of the ways in which developers mitigate these risks is by having a clear and accurate understanding of the construction site, including topography, layout, and any potential hazards or challenges. This is where drones come in to play a crucial role.
"Drones provide a complete picture of the construction site on-demand and within a few hours. The sharp, detailed images produced by drones enable site managers to track work progress and make accurate decisions based on up-to-date data and comprehensive reconstructed site maps instead of relying on plans or incomplete data that may not reflect reality."
By utilizing drone-based 2D maps and LiDAR technologies, drone companies can provide developers with a centimeter-level accurate survey of the construction site. These aerial views provide a comprehensive understanding of the site, allowing for better planning and decision-making in the construction process. This allows developers to proactively address issues prior to them becoming problematic, reducing the risk of delays or budget overruns.
Additionally, drones can be used to monitor the progress of a construction site in real-time. This allows developers to identify deviations from the original plan helping to reduce the risks associated with construction.
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4. Accessing Potential Build Sites
Another crucial step for a real estate developer is understanding how to assess the viability of a potential build site. Determining if the piece of property is suitable for a new project takes a lot of research and analysis, and potentially a variety of experts as well. Various factors such as site accessibility, topography, zoning regulations, and environmental issues are all areas of consideration. A thorough evaluation of a potential build site can be time-consuming and costly, but it is essential for ensuring the success of the project.
"Choosing the right location is critical to the success of any business, so it’s important that you are fully prepared and understand what goes into the site selection process for a new development site."
Drones have transformed the process of site assessment for real estate developers. Utilizing aerial imagery and inspections, drones provide extensive insights about the property, thereby reducing the time and cost for the developer. An experienced drone service provider can identify possible and unknown project costs, such as uneven terrain and bodies of water by generating LiDAR point clouds that highlight areas that may impact the construction. Typically, the analysis of this information takes only a few days, instead of several weeks or months, and can be shared with the developer remotely, eliminating the need for costly on-site inspections.
5. Adapting to Changing Industry Trends
The real estate industry is constantly evolving and adapting to new trends and technologies. To remain competitive, real estate developers must also be able to adapt to these changes. Emerging Trends in Real Estate, an annual trends and forecast publication, lists several trends and disruptors in the industry that developers should be aware of such as:
- Sustainability
- Being energy efficient
- Environmentally friendly
- Partnering with technology companies
- Changes to the buying and selling processes
- New Construction technology
- Cybersecurity
- Automation
- Artificial intelligence / machine learning
- Internet of things devices
- 5G implementation
- Blockchain technology
One of these disrupters listed in the study is the incorporation of drone technology into the development process. Utilizing drone technology can help real estate developers to not only stay ahead of the curve but also to save time and money while increasing efficiency.
"Although real estate capital markets are constricting, they are still open for business, investors are still buying high-quality properties, lenders will continue to lend, and companies should move forward with cautious optimism through this current cycle and prepare to adapt to quick market changes."
In addition to the other areas already mentioned in this article, drones can also be used to create visually appealing marketing materials, such as video tours and interactive diagrams, which can further help to attract qualified tenants and investors. As the technology continues to evolve, there will be even more opportunities for developers to utilize drones to streamline their processes and stay ahead of the competition.
Getting Started: Drone Solutions for Real Estate Developers
The use of drones in real estate development has proven to be a valuable tool in streamlining the process and reducing costs. From site visualization to construction risk management, drones have revolutionized the way developers gather information and make informed decisions. With aerial imagery, 3D modeling, virtual tours, and interactive diagrams, drones provide an efficient and cost-effective way to access build sites, attract qualified tenants, and manage construction risks.
The Pemberton Warehouse Project by DD1 Development in Burlington County, NJ serves as an example of how drones can streamline real estate development. Monthly drone flights were used to document construction progress, keep stakeholders informed, and market the site to potential tenants. This 485,500 SQ FT state-of-the-art warehouse, with 95 loading bays and 40-foot ceiling heights, was completed with the help of drones, contributing to the growing demand for industrial space in the nation.
"The Drone Life followed our Pemberton warehouse project for over a year with monthly updates. They worked with us around our schedule in a flexible manner, and made valuable suggestions. The work was valuable from many perspectives beyond marketing, we used stills and video for engineering visualization and land development."
At The Drone Life, we understand the importance of staying ahead of the curve in an ever-evolving industry. That’s why our team of experts offer tailored aerial solutions for real estate developers, with real-world experience in providing professional drone services. Our team can provide a comprehensive solution to meet your specific needs, from site inspections to video tours, we have the expertise to help you succeed. Don’t hesitate, schedule a free consultation with one of our drone experts today and discover the benefits of utilizing drone technology in your real estate development projects.
What's included in YOUR GUIDE...
A Proven Roadmap of Success for Implementing Drones in Construction.
A List of Red Flags to Avoid When Hiring Drone Service Providers.
How to Persuade Your Leadership Team to Leverage Drones on Every Jobsite.
