On the Need for Iterative Real Estate Project Models – Applying Agile Methods in Real Estate Developments

Abstract

Abstract This paper discusses how agile methods can be applied to real estate projects, and proposes a model for real estate development projects, inspired by practices in IT-projects. We review real estate development models and project management. Project models typically describe a project process as a linear development, from idea, through decisions, execution and delivery. Real estate development projects are no exception. However, reality frequently feed surprises into real estate development projects, creating needs for iterations, where the projects need to be re-defined. We also review agile methods used in IT-projects. The logic in these methods is iterative.This iterative aspect in IT-projects is relevant to real estate development projects as well. This means that real estate development projects have similarities with IT-projects, where the need for iterative development has contributed to the development of agile methods. We illustrate applications of the model, and corresponding time use in the development process. We find that there is significant variation in the time use, along with need for iterations. The time needed for processing a regulation plan in Norway is found to be minimum about one year, but it may take two years or more.