Real Estate Investing

Development Risk

Definition

What is Development Risk?

The risk that a property project faces cost overruns, delays, approval problems, or weak demand.

Example in practice

Construction costs rise before the development is completed.

Keep learning

Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.