Afik HanahalWhat is real estate development and how does a project start — all the stages
In short: Real estate development is leading a project from idea to finished product: the developer finds land or property with potential, checks what may be built, promotes planning and permits, organises financing and construction, and markets the result — carrying the risk and responsibility throughout. A typical project passes ten stages, and the time from sourcing to delivery is usually measured in years.
What a developer does
The developer owns the project. They do not necessarily build (that is the contractor) or design (that is the architect), but they decide, finance, carry the risk and earn the gap between total cost and finished value. Good development starts long before construction — in choosing the right land and understanding exactly what may be built on it.
The ten stages of a project
- Sourcing land — finding land or property that fits the purpose. In the Sharon most opportunities are private land at the city edges.
- Planning and legal checks — Tabu extract, ownership and liens, valid zoning plan, designation, building rights, constraints. This is where most bad projects fail.
- Economic feasibility — land cost, taxation (purchase tax, seller's capital gains, betterment levy), planning, construction, financing and marketing versus expected value.
- Deal structure — purchase, combination deal with the owner, partnership or purchase group.
- Design — architect, consultants and a scheme that fits the zoning plan or a new plan.
- Rezoning or added rights (if needed) — a process with the local or district committee including deposit, objections and approval. Years.
- Permits — building permit from the local committee after meeting requirements and paying levies and fees.
- Financing — equity, bank project financing or non-bank financing by scale.
- Construction — contractor selection, close supervision, quality control, schedule and budget.
- Marketing and delivery — selling units (often at pre-sale), condominium registration and handover.
How long a project takes
On land with an approved zoning plan, occupancy can come within three to five years; a project requiring rezoning or a new plan can take much longer, since the planning stage alone is measured in years. The difference between land "with rights" and land "with potential" is therefore the central difference in price and risk.
Where landowners come in
Most projects in the Sharon begin with a private landowner — a family, heirs or a farmer. The owner has several paths: sell to a developer, enter a combination deal (land for part of the product), promote a plan and sell after improvement, or combine them. The choice depends on time, appetite for risk and the taxation of each path. Afik Hanahal represents landowners opposite developers and builders and promotes plans up to ground-breaking.
Questions to ask before entering a project
- What is the designation today, and what is the basis for believing it can change?
- Who actually owns the land — are all partners signed?
- What is the total taxation of the chosen path, including betterment levy?
- If the plan is not approved — what is the land worth as is?
- Who manages and supervises construction, and what is the budget control mechanism?
Frequently asked questions
What is real estate development?
Leading a real estate project from sourcing to delivery: identifying land or property with potential, planning and economic checks, promoting planning and permits, organising financing and construction, and marketing the result. The developer carries the overall risk.
How do you start a real estate project?
Start from the land: check ownership, zoning plan, designation, rights and constraints, then run a full economic feasibility including taxation. Only if the numbers work move to deal structure, design and permits.
What are the stages of real estate development?
Sourcing land, planning and legal checks, economic feasibility, deal structure, design, rezoning or added rights if needed, permits, financing, construction, and marketing and delivery.
How long does a construction project take?
On land with an approved zoning plan — usually three to five years from sourcing to occupancy. When rezoning is required, the planning stage alone can take years, extending the total accordingly.
Related services
Development & plan promotionDeveloping new projects and promoting real estate plans: rezoning, land improvement and leading schemes up to breaking ground. Supporting landowners and developers in the Sharon and Central Israel.Read more →Land marketing & brokerageMarketing and brokerage of private land and plots in the Sharon and Central Israel: sourcing, rights and zoning checks, tax advice, negotiation and support through Tabu registration. Including exclusive off-portal listings.Read more →
Areas
Sharon regionWhy the Sharon is one of Israel's most sought-after real estate regions, where the private land is, what sets value, and how Afik Hanahal supports landowners, buyers and developers across the Sharon.Read more →Hod HasharonAfik Hanahal works from Hod Hasharon: brokerage and marketing of land and plots, development and plan promotion, and selling apartments and houses in the city. What characterises the Hod Hasharon market and what matters to owners and buyers.Read more →
Related guides
Rezoning land — stages, who approves, how long and what it costsHow land rezoning works (e.g. agricultural to residential): who initiates, what happens at the local and district committees, deposit and objections, how long it takes, the betterment levy — and when it is realistic at all.Read more →Developer vs. contractor — what is the difference and who is responsible for whatDeveloper, contractor, main contractor, subcontractors and supervisor — who does what in a construction project, who carries the risk, who is liable to the buyer, and what it means for a landowner entering a deal.Read more →What a construction supervisor does and what project supervision includesA construction supervisor represents the developer or owner opposite the contractor: checks that construction matches the plans and standards, approves payments, tracks schedule and budget and documents. What supervision includes, when you need it and what it saves.Read more →What to check before buying land — a 12-point due diligence checklistBefore buying land or a plot: 12 mandatory checks — Tabu extract, ownership and liens, zoning plan and designation, building rights, master plans, ownership structure (undivided shares), constraints, access and infrastructure, taxation and price.Read more →