What is a key benefit of a density bonus to a developer?

A key benefit of a density bonus to a developer is the opportunity for higher density and the potential for increased profits. A density bonus allows developers to build more units than typically permitted under existing zoning regulations. This increased capacity can lead to greater overall revenue from the project, as more residential or commercial units can be sold or rented out.

In many cases, the additional units made possible by a density bonus can significantly enhance the project's financial viability, making it easier for developers to absorb costs or invest in higher-quality materials and finishes. Furthermore, the ability to increase density can expedite the return on investment by allowing for a quicker turnover of units in the market. This makes the density bonus a strategic tool in real estate development that is aligned with urban planning goals of delivering more housing or commercial space in densely populated areas.

The advantages tied to density bonuses, such as the potential for increased profits, highlight the incentive mechanisms designed to encourage developers to participate in affordable housing initiatives or urban regeneration projects while maximizing land use efficiency.