Companies in this industry prepare land for development and subdivide it into lots for sale to builders; services may include excavation for the installation of roads and utilities. Major companies include Forestar Group, The Related Companies, WCI Communities (all based in the US), as well as China Vanke (China), Nexity (France), and Tokyu Land (Japan). Major homebuilders also often have their own land development divisions.
Demand for land development services is driven by population growth, personal income, employment rates, interest rates, and access to capital. The profitability of individual companies depends on accurate cost estimation and successful bidding. Large companies have advantages in having greater access to capital. Small companies can compete by focusing on a specific geographic area or market niche.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are subdividing real property into lots and preparing lots for sale to builders. Companies in this industry focus on residential property but may also subdivide land into commercial or industrial tracts. Some residential real estate developers specialize in master-planned communities that include amenities such as parks, pools, and trails. Other companies specialize in the development of apartment and condominium towers or communities in densely populated urban areas.