A company buys raw land, obtains approvals, installs infrastructure, and constructs houses or commercial buildings for sale or lease. That company is a developer. Developers turn land into finished real estate products.

The work involves market analysis, entitlement negotiations, financing, design, construction oversight, and marketing. Risk is high; timelines stretch and costs can overrun. Successful developers coordinate architects, engineers, contractors, lenders, and local officials.

Some developers specialize in residential subdivisions, others in office towers, mixed-use projects, or affordable housing. Profit comes from the spread between the cost of creating the product and the price it commands when finished. Public perception of developers varies with the quality and impact of their projects.

• Creates finished real estate from land or existing structures
• Manages entitlements, financing, and construction
• Assumes significant market and execution risk
• Profits from the value added through development