Approximately 48% of housing units in Philadelphia’s real estate market are rentals. This rate is higher than the national average, according to Norada Real Estate Investment. Despite the uncertainty caused by the global health pandemic, real estate investors think it’s the right time to build new houses. As of August, four developers presented their waterfront visions to the Civic Review Board of Philadelphia.
If built as planned, there will be over 1,500 new apartments in between Spring Garden Street and Fillmore Complex on Frankford Avenue. But that’s not all. Developers across the city are scrambling to put together proposals before the lucrative ten-year tax abatement expires. When combined, property development proposals alone will produce 3,600 new housing units and thousands of construction jobs in Philly’s hub. But before developers can begin construction, they must understand zoning rules and prepare sites accordingly to avoid penalties.
Understanding zoning laws is vital if you are looking to make the most of property development projects. Zoning rules regulate how developers use a piece of land within a municipality, meaning they dictate the type of properties that can be built on lots. So, before you can construct a condominium, single-family home, commercial hub, or multi-family house, ensure the zoning codes allow you to do so.
Whether you intend to build a condo or multi-family housing units, you need to prepare the construction site first. While there are many site preparation activities, your top priorities also should include land clearing and brush removal. These tasks involve demolition of buildings, tree removal, removing any underground infrastructure, and other elements that may affect the construction process. To ensure safety and efficiency, hire a professional land clearing company.
Approval For New Construction
After obtaining a building permit and clearing your site, you can focus on construction. In most cases, construction entails horizontal development like grading for roads, utilities, and curbs. After grading, builders can start building housing units from the ground up, depending on the designs.
The upcoming tax abatement changes for new construction are key factors contributing to the surge in residential property development. Many developers are looking to obtain building permits before January because the tax credit will become less valuable. Additionally, Philly guarantees a high market-rate housing demand compared to other cities.