**4. Academic perspective on real estate development's challenges and opportunities**

According to Kimsey and Marissa, huge organizations have shown a discernible rise in the interest in pursuing a new purpose beyond a solitary emphasis on monetary gain. This change has occurred in the direction of a revitalized commitment to the well-being of both people and the earth and a concentration on profit [42]. However, our comprehension of how businesses of this kind might successfully operate with this purpose-driven strategy is still in its infancy. The solution to management and financial issues is required for the successful growth of real estate to maximize efficiency. In the early years of the twenty-first century, our country's economic and political leanings unambiguously reflect an unshakable dedication to building a state with a thriving economy. Our nation's inclinations demonstrate this devotion. A thorough knowledge of a development's financial foundations is necessary for achieving economic development firmly rooted in economic theory. This article dives into the distinctive qualities of the real estate market, as well as the current growth patterns within the business and the application of economic theory to real estate while addressing more general concerns about finances. In its most basic form, the term "development" refers to various activities involved in the socioeconomic transformation of regions. These activities include the preparation of land, the construction of buildings and infrastructure, and a wide variety of business ventures, including residential and commercial real estate [43, 44]. Askar, R., Braganca, L., and Gervásio, H. underline the rising inevitability of change in our lives, making it necessary to strengthen the adaptive capabilities of buildings so that they may react to emergent factors efficiently and developing situations for the whole of their lifecycles. This necessity results from the growing number of calls for sustainability on a worldwide scale [45]. The idea of adaptability in buildings has attracted a large amount of attention, which has inspired the investigation and presentation of regenerative solutions to solve the prevalent problem of often outdated structures [46]. Before digging into the vital economic importance of development within contemporary domestic science, performing a full financial investigation to comprehend real estate's basic nature and distinguishing features is important. Only then can one begin to investigate current domestic science. The transformation of urban landscapes and the creation of new residential and commercial areas are both significantly impacted by real estate development. The real estate industry's commercial sector presents many challenges and opportunities as a direct consequence of these dynamics. Real estate development encompasses various phases: acquisition, funding, planning, design, development, construction, and asset management. Among these stages, performance management emerges as a critical component. Performance management entails the collaborative efforts of managers and their employees, working together to strategically plan, monitor, and evaluate the objectives or work goals of the employees, ensuring that their contributions have an overall positive impact on the organization or firm. Performance management serves as an essential mechanism for organizations or firms to assess the outcomes of their activities, gauge the alignment of quality with established objectives, and identify areas that require improvement to enhance performance by organizational goals [46]. According to Farida and Setiawan's research, improved business strategies boost the competitive edge of small and medium-sized enterprises (SMEs). In addition, businesses' performance and innovative capabilities mediate the link between business strategies and competitive advantages [47]. The

company presents several obstacles that need to be carefully evaluated and planned for, even though there are huge chances for the company to expand and become more profitable. The ease of access to land and its price are significant obstacles to real estate growth. Finding adequate land for construction becomes more difficult in places experiencing population expansion. Increases in land prices, communities that are opposed to new buildings, stringent zoning restrictions, and worries about the environment are all challenges that developers need to surmount. The limited availability of land may restrict the number of new projects that can be undertaken and increase competition among developers. The acquisition of money is yet another key obstacle in real estate development. Obtaining financing for large-scale projects requires meticulous financial preparation and may prove to be a challenging endeavor. When the economy is unstable or there is uncertainty in the market, developers often require assistance acquiring finance or attracting investors. This is particularly true during these times. In addition, the feasibility of projects and the decisions that investors make regarding investments may be impacted by various factors, including interest rates, the availability of financing, and the government's policies. In addition, the laws and regulations imposed by the government provide challenges and opportunities for expanding the real estate market [48]. Even though laws are intended to protect the environment, ensure people are safe, and maintain the standards for urban planning, these rules may sometimes produce bottlenecks and delays in the bureaucratic process. For developers, getting permits, conforming to zoning constraints, and satisfying other compliance standards may take time and effort [49]. On the other hand, good policies, like tax incentives or speedier approval procedures, could offer opportunities for developers to pursue projects aligned with the government's objectives. The ever-shifting dynamics of the market, as well as the tastes of consumers, provide yet another barrier that must be surmounted. To succeed in real estate development, one must foresee and satisfy the target market's requirements. Recently, several trends have seen a rise in popularity. These trends include flexible workspaces, intelligent technology, sustainable design, and mixed-use projects. The anemoscope of developers and the implementation of these trends are necessary for developers to keep their competitive edge and attract prospective buyers or renters. Suppose you need help to identify and satisfy the ever-evolving demands of the market. In that case, you risk having vacant buildings or unsuccessful initiatives.

Nevertheless, despite the difficulties, there are still enormous chances to be had in real estate development [49]. There is a need for more residential, commercial, and industrial areas because of the rapid urbanization, population increase, and economic growth that is taking place in many places. Those real estate developers who recognize underdeveloped areas, burgeoning communities, or unfilled niches can benefit from the possibilities presented here. In addition, developments in building methods and technical improvements have the potential to transform the real estate development business completely. 3D printing, modular construction, virtual reality, and artificial intelligence are all examples of innovations that have the potential to make the design and building process more streamlined, lower costs, and increase sustainability. Adopting these technologies may give developers a competitive advantage and increase their efficiency at every stage of the software development lifecycle. In addition, development practices that are sustainable and environmentally friendly offer opportunities for both prosocial responsibility and economic gain [50]. These opportunities can be found in building certifications, energy-efficient designs, the integration of renewable energy, and eco-friendly amenities, all of which can attract buyers and tenants who are environmentally conscious. Additionally, sustainable practices

*Sustainable Built Environment and Its Implications on Real Estate Development… DOI: http://dx.doi.org/10.5772/intechopen.114078*

#### **Figure 2.**

*Scientific factors on real estate development's challenges and opportunities.*

may contribute to cost savings by reducing energy and money spent on maintenance. The development of real estate also helps the creation of jobs and the expansion of the economy. Construction projects not only provide job possibilities, but they also help to promote local economies and attract investment. Real estate development presents a variety of challenges as well as opportunities; developers who work in collaboration with the communities in which they are developing, who participate in responsible urban planning, and who place a priority on social infrastructure can help to cultivate positive relationships and contribute to the overall well-being of the preclusion in which they are working. The need for more available land, the difficulty of obtaining funding, the laws of various governments, and the ever-changing market all provide challenges for developers (see **Figure 2**). Nevertheless, developers can unleash prospects for development, profitability, and good social impact when they embrace technology, sustainable practices, and emerging market trends. For a real estate development project to succeed, it is necessary to conduct thorough research and analysis, come to well-considered decisions, and have in-depth knowledge of the dynamic business environment [51].
