115 research outputs found
Residential construction cost: An Italian survey
No full textThis paper reports data describing development projects for new buildings according to construction costs in North-East Italy. A survey was carried out on local companies undertaking new residential development projects in two Italian regions (Veneto and Lombardy). The aim of this survey was to record new real estate construction projects, collecting both technical and socio-economic cost features. It is extremely difficult to collect such data for the Italian real estate construction sector, due to its lack of transparency, so that the novelty for the Italian scenario is the dataset itself. Another interest perspective of this survey is that socio-economic characteristics were also recorded; they are often studied in urban economics, but are usually related to property purchase prices and values, not to construction costs. The data come from an analysis of Canesi and Marella regarding the relationship between the trend of construction costs and the socio-economic conditions of the reference setting, such as the mean years of schooling of the workforce, housing market trends, and average per capita income
A multicriteria approach to prioritize urban sustainable development projects [Un approccio multicriteri per il ranking di progetti urbani sostenibili]
No full text
Urban Density and Land Leverage: Market Value Breakdown for Energy-Efficient Assets
No full textA real estate asset comprises land and improvements. The proportions of these components vary over time and across locations. Notably, the land value component is consistent over time, unaffected by depreciation. Consequently, the weight of land value in determining the overall asset value is crucial, particularly in those improvements that are highly sensitive to depreciation, such as energy-efficient buildings. While several studies have explored the relationship between energy-efficient building consumption and urban density, there is currently a research gap concerning the relationship between land value and the value of efficient improvements built on it. Before investigating this potential relationship, it is imperative to preliminary examine any possible correlations between land values and land density. To verify this correlation, we captured the “Land Leverage” of a real estate property by calculating the ratio between the value of the land and the total value of the real estate property and correlating it with the allowable density. Our analysis of the Land Leverage (LL) trend in a restricted development area over a ten-year period demonstrates that LL increases with the level of permitted density in a neighborhood. This evidence will serve as the foundation to verify whether Land leverage, through urban-densification strategies, might be a pivotal factor in driving the values of energy-efficient assets
Data from RE distressed market: Properties Auctions in Italy
No full textThis paper reports data describing Real Estate (RE) distressed market, focusing on properties foreclosures occurred in North-East Italy. A survey was carried out consulting financial institutions, courts of law and different associations of public notaries. The aim of this survey was to record RE auctions, collecting technical and socio-economic features. The novelties of this survey are mainly two. The first consists in the dataset itself, due to the difficult in collecting such type of data in the Italian scenario. The second one is the recording of socio-economic features related to the occurrence of the survived Re auction. The collected socio-economic characteristics regard housing market trends and performance as well as demographic features. These features could be analyzed in order to relate the performances of this type of distressed market and the surrounding urban context. The database come from an analysis of the authors regarding the discount existing between the Forced Sale Price and the Market value, assessed by appraisers. Keywords: Distressed market, Real estate auction, Performance, Survey, Ital
Risk Assessment in Real Estate Investment Projects
No full textWhen the future is uncertain and an investment is durable and illiquid the decision to invest at a certain point in time contingent to new information to come as well as a correct assessment of risks are a key issues especially in times of global financial crisis. The existence of a well-functioning capital market allows investors with different time patterns of income and desired consumption to agree on whether real estate investment projects should be undertaken. In order to estimate discount rates for real estate assets, firstly we need to know how to measure risks and identify the relationship between risks borne and risk premiums demanded by investors. Risk affects investments and cannot be fully eliminated. Increases in both idiosyncratic and systematic risk lead developers to delay new real estate investments because they feel not confident in the estimated values and the assessment of the project’s riskiness. Investors have to determine how much risk they can tolerate, the return they need and its timing.
Aim of this paper is to provide a theoretical framework to address risk and uncertainty in real estate investment valuation procedures. The paper proposes a model for risks assessment that will help to evaluate risks and opportunities of real estate assets and investments taking into consideration different aspects of the project and related risks (market risk, valuation risk, market growth risk, operating risk, etc.). Real estate development is in fact a multiphase process involving land development, followed by residential and/or commercial development, ending with the eventual marketing phase of the development through the sale or leasing of the completed site. While all three phases of the housing industry are interrelated, each stage involves various risks which are differently allocated between landowners, land developers, and the homebuilders. More rigorous risk assessment measures within the property investment industry are here designed to operate initially at the level of the individual asset and then extended to the framework drawn from conventional theory which operates primarily at the portfolio level
Risk Assessment in Sustainable Infrastructure Development Projects: A Tool for Mitigating Cost Overruns
No full textThe persistent decline in infrastructure spending, notably within the transportation sector, raises concerns about governments’ capacity to meet the demands of a sustainable growing economy. The incorporation of risk assessment in the analysis and computation of potential cost overruns emerges as an effective and efficient tool, underpinning the economic and financial sustainability of infrastructure expansions. Focusing on the “State Road No. 51 of Alemagna Vittorio Veneto” (SSv-51) variant, this study analyzes and proposes a model to forecast the possible cost overruns of an infrastructure project. The application of the risk assessment tool proposed by the National Anti-Corruption Authority (ANAC) offers valuable insights into potential risks associated with project costs and their valuation. The matrix developed in the current study draws from the ANAC Matrix, which comprises four categories of risk divided into 21 risk types. The selection is based on the project’s characteristics, and a matrix is compiled that forecasts the combination of the probability of risk occurrence and the cost impacts on the project. The proposed risk matrix serves as a practical tool for managing uncertainties and estimating potential cost overruns, estimating ex ante a possible cost increase of 7.53%. This projected increase differs only by 1.34% from the final execution costs, mitigating the unforeseen cost overruns not estimated by the initial project. The proposed risk assessment tool emphasizes the importance of integrating risk management into project planning and execution. The research investigated an applied case utilizing an easily adaptable tool, suitable for potential future implementation, further advancement, and broader testing across various project samples in the future. The study provides a framework to assess and mitigate risks linked to cost overruns. As nations navigate infrastructure development complexities, proactive risk management practices are indispensable for efficient resource management, ensuring the economic and financial sustainability of these complex projects
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