Real Estate Project management is a methodology for controlling schedules, costs, and specifications developed initially for the construction industry. Every company, regardless of sector, prefers project management because its discipline leads to a successful project. However, it is also critical to execute the project management process flawlessly.
One of the most critical sectors of the national economy is real estate. Real estate means “actually existing,” and estate means “owning land, property, or assets.” Thus real estate can be defined as actual land or property owned. Delving deep into understanding project management in real estate, real estate can be classified into four types:
- Residential Real Estate: Residential homes, condominiums, cooperatives, duplexes, townhouses, and multifamily properties are examples of residential real estate.
- Commercial real estate: This includes shopping centers and strip malls, as well as medical and educational facilities, hotels, and offices.
- Industrial Real Estate: Manufacturing buildings, property, and warehouses are examples of industrial real estate.
- Land: This category includes undeveloped land, working farms, and ranches.
The project manager is a critical component of the real estate project management process. Real estate-related projects have project management steps.
Initiation of the project
This is one of the most critical stages of the project because it is where the analysis takes place. This phase describes the project’s overall scope. The project manager performs the research for the client’s requirements. The procedure starts with deciding on a location. The cash flow is calculated by subtracting rental income from expenses. The profit will be calculated by subtracting the rental income.
The capitalization rate is then calculated as net property income divided by the total value of property in the current market multiplied by 100. The cash on cash return is calculated by dividing the annual pre-tax cash flow by the total money invested. After that, a comparative market analysis is carried out. It is simply a comparison of comparable properties previously sold on the market. A project manager will also look into the client’s needs and the project’s feasibility.
Project planning completes after the project has begun. A project manager is well-versed in the project’s scope. The project manager then creates several business cases. A SWOT analysis has been carried out. Project-specific objectives are established. The project manager organizes a meeting with the system team and stakeholders. The budget is discussed and agreed upon in light of the project’s scope and requirements.
A contractor is chosen at this stage. The project manager then creates various charts to plan the task activities. The project manager will then pre-plan the allocation of resources to specific tasks. Deadlines are set to functions that have been assigned to resources. One plan can never stand-alone or be guaranteed in project management. As a result, the project manager creates new strategies based on various business cases. Planning is done so that the estimated cost of the project meets or is less than the fixed budget price of the project.
Execution of the Project
After planning, the project’s actual process begins. The project manager implements the planning and develops an activity chart. Deadlines are met. The team reports to the project manager daily. The manager examines the report and keeps track of its history.
Design completion by architecture and engineer, management coordination with all construction activities, IT department for automation, and sales department related to sales activities are among the activities. A manager also schedules weekly meetings (scrums) with team leads to share project status. Problem-solving sessions are held if the manager notices that tasks are not being completed.
The importance of monitoring cannot be overstated in terms of the project’s success. The manager is responsible for completing quality projects on time and within budget. Because there are so many variables that can go wrong, project activities must be closely monitored and controlled. Despite their initial success, many projects fail after execution due to a lack of project monitoring and control.
The project manager’s goal is to complete the project on time and within the budgeted resources while ensuring the highest quality of work. Scope, Schedule, Cost, Quality, Communication, Uncertain Changes, Risk, Procurement, and Stakeholder Engagement are essential factors to consider. The plan must be modified or changed due to the risk. Previous project references are also used to improve the current process.
Finishing the project
After all of the initial processes have been completed, the final step in real estate project management is closure. When a high-quality product is delivered on time and within budget, the project is declared complete. At this stage, whether a project fails or succeeds, some learning is taken as a conclusion. In terms of meeting all requirements, no project can ever be perfect. If any features are missing from the current project version, they will be added to the next system version. In addition, a project manager keeps project documentation for future reference.
Management is the art of getting things done in a timely and resource-constrained manner, and it is something that can be learned and skills developed through management courses. As a result, it concludes that project management is an essential process in the real estate industry. A minor hiccup in one project management phase can jeopardize the project’s success. As a result, Monks Learning Lab provides the best PMP training course to help real estate professionals develop under the supervision of industry experts. PMP certification is one of the most essential and required criteria, indicating that the candidate has the necessary qualities for the job and is also eligible for a good salary. So, if a candidate wants to be the best professional as part of a management team, PMP certification is essential.