A stalled development is a real estate development project that has been “on hold” for more than 1 year but has not yet been deemed abandoned.
This is important as a stalled development is still technically in the real estate pipeline. Once it has been deemed abandoned, it officially gets removed from the pipeline. On the other end of the spectrum, projects that exit the pipeline because of completion can be referred to as new construction.
New construction is the most critical and important supply concept driving real estate markets.
The term new construction refers to completions. The new supply of real estate has three stages, commonly referred to as the “pipeline.” These are marked by three project milestones:
1. Permit (or pipeline entry): the development receives the permit or permission of the authorities based on approved plans.
2. Start or startup of construction, which usually means that “shovels are in the ground” but can be more complicated.
3. Completion: the property is given occupancy certification.
