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Cardiff Property Development

Property developments can offer an excellent return in a relatively short space of time. Due to the higher level of risk, and time factor involved, developers will require a higher rate of return than long term investments.

Cardiff Property Development Opportunities

Property Refurbishment

CPS Homes market a number of properties that require extensive refurbishment works. This could include internal re-structuring, renovation and/or extending the property. With all developments the key is adding value to the property. Some properties will come with planning permission which will affect the price.

Large Scale Developments

These projects require more work, and typically experience developing other properties. They vary from land for new-build apartments and houses, conversions from commercial to residential. Some developments have planning permission granted, whilst other developments may be speculative.

How to become a Property Developer?

Being a property developer can be extremely rewarding but it comes with its risks. In order to be a successful property developer, you will need to ensure you have an investment strategy.

Location

Cardiff attracts many investors from within its City, from around the UK and from overseas investors. With a thriving student market and extensive regeneration taken place in Cardiff Bay, and more recently with St David's 2 in Cardiff City Centre, the number of investment opportunities is high.

Each investor, when formulating their own investment strategy is likely to have a preferred area to develop property in. Some of the most popular areas are below: -

  • Cardiff Bay
  • Cardiff Bay has seen massive regeneration in recent years with a strong demand still for property. Return can be excellent if the purchase price is correct, and the expected rental level is realistic. Our Cardiff Bay office will be happy to give an idea on expected rental levels on 02920 480 490

  • Cathays
  • Cathays is close to Cardiff City Centre and is very popular with students being close to Cardiff University. Subject to additional HMO licensing, you will need to be aware of your responsibilities, but with seemingly unwavering demand in this part of Cardiff, it's an excellent place to convert previous family homes in HMO's or blocks of flats

  • Roath
  • Popular with students and families alike, there are opportunities to restore family homes or turn them in HMO's. Slightly further out for students, it's important that you calculate demand if you're converting a property into a larger HMO.

  • Cardiff City Centre
  • With high demand and limited availability due to space, Cardiff City Centre provides many opportunities for investors. There is less opportunity to develop in this part of Cardiff, but with the renovation of St David's 2 and the creation of Hayes Apartments, investment opportunities are rife.

Long Term or Short Term?

Each developer will have a strategy, and a time scale they expect to make a return in. Most developers will work on a Return on Cost (ROC) or Return on Investment (ROI) to see if a project is viable. For a short term, high risk project the developer will expect a higher return than a longer, steady project.

Some investors will buy property in Cardiff off-plan in the earlier stages of constructions. This will allow them to obtain discounts and secure a price before construction is completed.

Capital Growth or Rental Yield

Depending on the investment strategy, some investors will look for capital growth rather than rental yield, and will invest in properties seemingly with little or no return. If value can be added, or the property 'flipped' then there are excellent returns to be made. However, if capital growth is going to be relied upon then it's essential that the calculations are correct, as relying purely on capital growth with little certainty of it has been the downfall of many less experienced investors, as with the recent economic downturn it has been highlighted that property prices can fall, as well as rise. Even so, property has continued to prove itself as a good medium to long term investment.

What type of development to buy?

Off Plan

Properties can be purchased before they are built, from anytime after permission to build has been granted to in the final stages of completion, with a discount. More information on purchasing off plan property in Cardiff can be found in our New Homes & Apartments Section

In Bulk

Different investors have different preferences. Some investors prefer to buy in bulk in the hope of saving money. Some investors will buy properties in the same development whilst others prefer to diversify the type of property they purchase.