The Challenges of Development
Our clients are developers—the people finding sites, planning estates, executing construction, and selling houses. Their job isn’t always an easy one.
Here are a few reasons why:
Land acquisition is competitive.
In a country where well-placed, unoccupied land is becoming more and more rare, everyone seems to be vying for the same sites. Our clients often end up bidding against other developers for the perfect piece of property.
The planning process requires expertise.
It takes dedication and patience to break into this market—you probably won’t become a successful developer overnight. The top people in this industry have the experience and know-how to ensure a winning strategy and fast-selling homes.
A demand for completed units can be hard to prove.
After the economic crash, development in Ireland all but came to a halt. This complicates things for today’s developers, as there’s a lack of supporting evidence of comparable sales: if no houses have been built in a particular area over the last ten years, it’s hard prove that new houses will sell there now—even if the demand seems obvious. To summarise, it’s difficult for developers to establish the viability of an investment in today’s marketplace.
Building is highly regulated.
In reaction to boom-time builds that were poorly standardized, regulations have tightened exponentially over the last ten years—and tighter regulations mean higher costs. This increases risk on potential projects.
There is a shortage of skilled professionals and tradespeople.
Despite the upturn in building projects in Ireland over the past few years, the industry is still struggling to attract skilled craftspeople. This makes it difficult to staff a construction site or to get work done in a timely manner.
But probably the biggest issue faced by developers? Most have extremely limited access to finance.
Availability of credit in the construction industry is slim. After experiencing such a drastic economic downturn in 2008, banks have become reluctant to lend. Most developers struggle to get financing as quickly as they need it.
Thankfully, there is a solution to this frustrating problem of funding for property developers: alternative lending.
At Castlehaven, we’re experts in property finance—we know how to quickly assess a proposal and see the potential in each project. Unlike traditional lenders, we prioritize swift loan approvals, ensuring that our clients don’t waste time or miss out on opportunities.