A Comprehensive Guide To Building A Block Of Flats

It seems that blocks of flats are constantly being built, spurred on by difficulties in the housing market and ever-growing populations. If you’re interested in real estate development, you may be considering constructing your own complex but doing so is no small task. However, with the right preparation, you can soon turn your aspirations into a reality.

In our guide, we discuss how you can create high-quality residential properties that meet market demands as well as regulatory standards.

Initial planning stages

Knowing the size of your project will help you choose the right people for the job, and you’ll be able to budget much better. Will you be building a small block of flats with a few units or will it be something on a much grander scale?

Additionally, think about the location of your structure since this will determine things like the type of tenants, nearby amenities, and overall price. Remember, potential renters will expect close proximity to public transport services, good schools, and social spaces.

Aim to balance the cost of the location and size of your development with the predicted rental income. If you find your expected profits are starting to reduce significantly, you may be required to scale the project down or sacrifice the location for somewhere more affordable.

Financing the project

As you can imagine, building a block of apartments requires funding that most can’t afford to cover themselves. Generally, the cost can range from £1,800-£3,000 per m2 but this will be determined by the price of the land and if the existing structure needs to be demolished.

Then you’ve got to consider other factors such as contractor and architect fees, interior design costs, and landscaping charges. Come up with a budget for all of the areas concerned and then look to secure funding, either by applying for property development finance or through partnerships and investors.

Design and approvals

Before construction can begin, you must obtain any necessary permits from your local government. Note that this can take some time, and so must be factored into your schedule – and you will also likely be subject to pay fees.

One of the most important aspects of your project will be to find reliable and experienced workers who specialise in commercial construction. They can make or break the end result depending on their communication skills, performance, and ability to stay on budget, so check reviews and contact different firms before making a decision.

Consider working alongside a contracting company that also offers construction management services. This means you then don’t need to find a construction manager and architect separately.

Construction management and marketing

Now it’s time for the exciting part – the construction of your block of flats will begin. Due to the size of the undertaking, preparation is key. Communicate regularly with your contractor to ensure you remain on schedule and stick to the set budget.

While this goes on in the background, begin to market your new complex to as many people as possible. Highlight the features and amenities that will make it stand out from others in the area, utilising online listings, print advertisements, and word of mouth.

Once you’ve finally finished the development of your flats, you’re now faced with the challenge of managing them. To continue making money, your tenants must be well taken care of. Hire a property manager who will ensure the communal spaces are well maintained, health and safety standards are met, and all insurance policies are kept up to date.

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