Purchasing unused land for a potential development is sometimes called speculative development. Few apartment-dwellers own their units, either as co-ops, in which the residents own shares of a corporation that owns the building or development.
Subdivision of land is the principal mechanism by which communities are developed. Technically, subdivision describes the legal and physical steps a developer must take to convert raw land into developed land.
Subdivision is a vital part of a communitys growth, determining its appearance, the mix of its land uses, and its infrastructure including roads, drainage systems, water,sewerage,and public utilities .
Land development can pose the most risk, but can also be the most profitable technique as it is dependent on the public sector for approvals and infrastructure and because it involves a long investment period with no positive cash flow.
After subdivision is complete, the developer usually markets the land to a home builder or other end user, for such uses as a warehouse or shopping center. In any case, use of spatial intelligence tools mitigate the risk of these developers by modeling.