Real Estate Projects Research Articles

Space Grabs: Colonizing the Vertical City

AbstractMuch attention has been paid recently to land grabs in rural and urban areas of the global South, but relatively little attention has been paid to such activities in the third dimension—vertical space. Yet vertical space has also been increasingly colonized, as manifest in the transformation of mega‐city skylines through the proliferating number and height of high‐rises in both central cities and peri‐urban developments. We investigate how floor area ratio policies, originally designed to control densification, have been reworked to facilitate densification through floor area uplift. Thus a tool originally developed to advance public welfare has been used to facilitate the profitability of real estate projects for developers and to benefit local governments. Taking DKI Jakarta as our case study, we sketch out the coevolution of this policy with urban regimes, focusing on the mid‐2010s when compensation measures were formalized and made transparent. By using a particular project in Jakarta's central business district we show how the benefits of floor area uplift favor private sector developers over the local government. In a context of rapidly increasing land values, increasing demand for housing from an emergent middle class, and particularly the privatization of planning, this unevenness systematically favors the private sector.

Subdividing the sprawl: Endogenous segmentation of housing submarkets in expansion areas of Santiago, Chile

Urban sprawl is a phenomenon observed in most cities around the globe and especially in Latin America, where it is associated to socioeconomic segregation. In the case of Chile, sprawl has been generally based on large real estate projects. Developers target their projects to different types of consumers, which translates into submarkets with a broad range of housing-unit’s characteristics, but also different location strategies. This heterogeneity has been analyzed and measured in the literature, but quantitative studies have used exogenous or sequential methods to identify submarkets, leading to potential bias in the segmentation. In this paper, we propose an econometric model to measure location drivers for different types of real estate projects that fills this gap. The modeling framework is based on discrete-choice and latent-class models, allowing us to simultaneously identify market segmentations, and their particular location choice preferences, without the need of arbitrary or ex-ante definitions of submarkets. The model is applied to the city of Santiago, Chile. The results reveal two clearly different approaches taken by developers to produce housing, with one submarket of “exclusive” and more sprawling projects, and another submarket of “massive” and more density driven projects. Location strategies are very different between submarkets, reproducing the socio-spatial segregation already observed in the consolidated city.

Activity-Based Demand Modeling for a Future Urban District

Identifying the spatio-temporal patterns of people activities in urban areas is key to effective urban planning; it can be used in real-estate projects to predict their future impacts on behavior in surrounding accessible areas. LaVallée is a large construction project recently started in Paris’s suburb; it is a new district due in 2024. The paper is in the field of urban planning, aiming at developing a method making it possible to model the potential visits of the various equipment and public spaces of the district, by mobilizing data from census at the departmental level, and the layout of shops and activities as defined by the real-estate project. This model takes into account the flow of external visitors, estimated realistically based on the pre-project movements in the areas of influence of LaVallée. In this paper, we propose an activity-based model methodology to determine trips and their purpose at a mesoscopic scale including the city and surrounding areas, in the current baseline scenario. This travel demand is required to estimate potential external visitors of the future district. A first demonstration shows that the model correctly represents the current demands and allows the forecast of future demand in the area.

Style classification and prediction of residential buildings based on machine learning

ABSTRACT Architectural style positioning is an important part in the process of residential building design and project planning. However, in practice, due to the complexity and ambiguity of styles, style positioning often relies more on the subjective judgement of the designers and lacks scientificity. This paper proposes a method for the classification and prediction of residential building styles. Through structured interviews and questionnaire surveys on front-line designers and project planners, it refines the key morphological elements and the site economic factors that influence architectural style classification and positioning. Based on machine learning, after analysing the data of 372 newly built real estate projects in Hangzhou, the research finds t|TABE_A_1779728|TABE_A_1779728hat the current real estate styles can generally be divided into 8 categories. Whether it is a curved volume, the shape of the roof and the richness of the tones are the most important morphological variables that differentiate style categories, and the building height is the most important economic factor for style positioning. When using the selected five economic factors as independent variables to train a neural network model and predict the morphological elements and style categories, the average accuracy reaches 77.2%.

REDES ORGANIZACIONAIS, SINERGIAS LOCAIS E INTERAÇÕES ESPACIAIS: o projeto Granja Marileusa e a atuação do Grupo Algar em Uberlândia (MG)

No âmbito da reestruturação técnico-científica, a organização em rede é baseada na premissa das sinergias locais, da flexibilidade, da cooperação e das interações espaciais. Este texto discute as estratégias de ação do Grupo Algar, uma corporação sediada em Uberlândia (MG), no arranjo de redes organizacionais correlatas às suas principais atividades. Em vista disso, analisa o comando de programas de inovação aberta e os esforços para fomentar, na mencionada cidade, qualificações e sinergias profícuas ao próprio funcionamento. Sobre esse último ponto, a estratégia segue vinculada à prática de incorporação imobiliária que, a partir da refuncionalização de uma gleba periurbana pertencente ao próprio grupo, deu origem ao projeto imobiliário denominado Granja Marileusa. Esse projeto revela uma importante estratégia que potencializa as interações, alimenta efeitos de proximidade, de conexão e de inovação. Frente ao arrefecimento da produção industrial e/ou da venda de bens ligados ao mercado primário, evidencia especialmente uma prática que mira a valorização do capital fundiário angariado nos auspícios do mercado imobiliário.

Calidad de servicio en los proyectos inmobiliarios y la rentabilidad de las empresas constructoras en el distrito de El Tambo Huancayo-2018

Actualmente existe consenso respecto a la calidad de servicio y la rentabilidad en los proyectos inmobiliarios en el Perú, estos dos conceptos conjugan como variables fundamentales dentro de una gestión organizacional, sin embargo, no está claro el conocimiento de cuáles son los efectos específicos que tienen dichas variables en lograr una mejor valuación de las empresas constructoras en general., debido a ello, el investigador se pregunta ¿Cómo la calidad de servicio en los proyectos inmobiliarios influye en la rentabilidad económica de las Empresas Constructoras en el Distrito de El Tambo 2018? Dando origen a la hipótesis: La calidad de servicio influiría significativamente en la rentabilidad de los proyectos inmobiliarios de las Empresas Constructoras en el Distrito de El Tambo 2018., para demostrar esta hipótesis se recopiló información a través de la aplicación de un cuestionario de 15 preguntas a 12 colaboradores de la Empresa Constructora Consorcio Arquitectos & Ingenieros ubicada en el distrito de el Tambo, esta encuesta fue contestada de forma individual bajo estricta confidencialidad, así mismo se elaboró una ficha de análisis de los estados financieros de dos años de la misma unidad de análisis Consorcio Arquitectos & Ingenieros SAC, el análisis de estos documentos permitió observar el comportamiento de las partidas contables del estado de situación financiera y el estado de resultados de los periodos 2017 y 2018 a través del análisis de ratios financieros. Esta investigación pretende aportar a las empresas de este rubro, herramientas para su administración y gestión contable, asimismo a la práctica constante de una gestión de calidad que sirva como un instrumento de referencia para las políticas económicas y financieras en esta empresa constructora, que sirvió como unidad de análisis, permitiendo mejorar los procesos de gestión contable, control de inventarios, control de caja, control de las cuentas por cobrar de la empresa, asimismo pretende incentivar a la planificación de los servicios de construcción y mejorando su calidad través de una supervisión constante en el proceso de la obra. Al finalizar la investigación se determinó que si existe influencia de la calidad de servicio en la rentabilidad de los proyectos inmobiliarios de las Empresas Constructoras en el Distrito de El Tambo 2018, asimismo se describió, que la gestión de calidad de servicio es buena pero la gestión contable está todavía incipiente en nuestra unidad de análisis Consorcio Arquitectos & Ingenieros SAC, asimismo se recomendó motivar a los empresarios del sector construcción a formalizar su información contable financiero que en el transcurso del tiempo beneficiara económicamente a la empresa.

Research on the Risk Management of Real Estate Development Projects

With the rapid development of China's social economy, the real estate industry has become one of the pillar industries. In this paper, the expert intuitive judgment method is used to identify the risks in real estate development projects, AHP is used to evaluate the risk factors, and the corresponding risk response strategies are formulated, and risk monitoring measures are proposed to help real estate enterprises effectively manage real estate projects.

Urban layers of political rupture: the ‘new’ politics of Addis Ababa’s megaprojects

ABSTRACT From the Derg’s restoration of Meskel Square for its military parades and Meles Zenawi’s Light-Rail Transit (LRT) and condominium social housing projects to Abiy Ahmed’s high-end luxury real estate and urban tourism schemes, megaprojects have collapsed Ethiopia’s political history into an urban bricolage of shifting ideologies and new priorities. At this critical juncture, where questions of political rupture and continuity become salient, this paper examines what we can learn about Ethiopia’s political dynamics through its latest urban megaprojects. Drawing on ‘LaGare’ and ‘Beautifying Sheger’ as case studies, this article argues that there is a new urban aesthetic emerging in Addis Ababa targeting domestic elites, the Ethiopian diaspora and tourists. Prime Minister Abiy Ahmed’s Gulf-emulated luxury real estate projects and major riverside renewal schemes are intended to generate revenue through increased land values and urban tourism. At the same time, issues around inclusive consultation with local stakeholders, the lack of coordination with the relevant bureaucracies and the highly centralized decision-making process are reminiscent of the modus operandi of previous Ethiopian regimes. These urban megaprojects are useful analytical lenses to disentangle political rupture from operational continuity.

Impact of safety management system on safety performance: the mediating role of safety responsibility

PurposeSafety management system (SMS) has been widely adopted to explore its influence on safety performance (SP). However, most existing researches recognized SMS as a one-dimension structure and neglected the influences of its subdimensions. Similarly, the impact of safety responsibility (SR) on SP received little attention. This study aims to explore the relationship between subdimensions of SMS and SP, while incorporating the mediating effect of SR.Design/methodology/approachThe research data were gathered from safety management evaluation report of a large real estate enterprise in China during 2010–2017. This paper carries out a series of data analyses to explore the impact of SMS and SR on SP. In order to analyze the synergistic impacts of SMS and SR on SP, path analysis, correlation analysis and mediation analysis were conducted using hypotheses concerning with the main subdimensions.FindingsThe results indicated SMS and SR decreased the project risk level and improved SP of real estate projects. Furthermore, the effect of SR partially mediated the relationship between the SMS and SP.Practical implicationsFindings in this research contribute to improve SP in real estate industry as well as other industries by the active assumption of SR and the successful implementation of SMS.Originality/valueThis research shows the relationship between subdimensions of SMS and SP and the mediating role of SR on SMS–SP relationship to improve SP in real estate industry.

Dynamic real estate project cost prediction based on SIMCA-P

with real estate projects as study cases, this study explored the influencing factors (contract term, project visa, project changes, etc.) for dynamic cost control and performed numerical analysis on these factors. The SIMCA-P software was used to perform partial least squares (PLS) regression on the actual cost and a regression prediction model was built. The difference between the checked cost and that forecasted by the model was compared, the reliability of the mathematical models for the residence projects was verified. The research results show that the explanation capacity of the explanatory variables for the dependent variables reached 0.937, which means that all these before-mentioned factors had significant impacts on dynamic cost control. The average error of the predicted residence cost obtained by the model based on actual data was 0.006582346, indicating the high prediction accuracy and that the PLSs regression method performed well in solving the multiple correlations between independent variables. Therefore, the PLS regression method could provide a good solution for prediction of dynamic cost of real estate projects.

Apartment Buyers as Financial Creditors: Pushing the Conceptual Limits of the Indian Insolvency Regime

A unique feature of the Indian insolvency regime is itsclassification of debt into “operational” and “financial” debt. InSwiss Ribbons v. Union of India, the Supreme Court of Indiatenaciously upheld the difference between operational andfinancial creditors and declared this classification constitutionallyvalid. Last year, the Insolvency and Bankruptcy Code, 2016 (IBC)was amended to include amounts raised from allottees (persons towhom an apartment or plot in a real estate project has beenallotted) within the definition of “financial debt,” thus makingallottees financial creditors. Though the amendment was passed toempower allottees in India’s real estate sector, it revived a moregeneral discussion on the characteristics of operational andfinancial creditors.This paper posits that the amendment was enacted at thecost of stretching the definition of “financial creditor” beyond itsconceptual limit and interfering with the IBC’s insolvencyresolution mechanism. We use the United States’ and the UnitedKingdom’s insolvency regimes as a point of reference forascertaining the role of creditors in insolvency proceedings andwhether operationalizing the insolvency regime to solve problemsin a particular sector is justified.

Algorithm for the development project’s technology portfolio formation

The article presents the results of a study on the portfolio of technologies formation upon implementation commercial real estate projects. The aim of the study was to investigate the strategies and optimization of forming technology portfolio at the pre-investment stage. The relevance of the article the problems that arise in the interaction of the project organization and the developer. The article proposes a methodology for portfolio formation based on the use of multifactorial space. As a key indicator of decision-making, a priority coefficient has been developed. An algorithm for the formation of a technology portfolio during the implementation of a project at a conceptual stage has been developed; testing was carried out on the example of facade system solutions. The proposed algorithm can complement the existing quality control systems for the stages of design, construction and operation of an investment construction project.

Determinants of purchase intention for real estate developed on industrial brownfields: evidence from China

Against the backdrop of industrial structure adjustment and scarce land resources, China has experienced a sharp rise in the number of real estate projects developed on industrial brownfields (REDIB). To date, several new policies and projects have been developed for such real estate. Although their success depends on public acceptance, there is little quantitative research on whether the public is willing to support these projects. This study extends the standard theory of planned behavior (TPB) model by including trust and risk perception to determine which factors influence REDIB purchase intention and provide a basis for policy formulation and redevelopment strategies. Structural equation modeling was used to analyze 338 valid survey responses from Chinese residents. The empirical results show that in the original TPB model, consumer attitude is the main factor affecting intention to acquire; interestingly, subjective norms and perceived behavioral control are not significant. In addition, expanding the theory of planned behavior using risk perception and trust as additional features significantly improves the interpretability of the standard model. These findings provide important insights for understanding purchase intention regarding real estate projects developed on industrial brownfields. Policy recommendations and strategies for further industrial brownfield redevelopment are proposed based on our findings.

The main causes of risk in residential real estate projects

In the recent years, the Portuguese Real Estate Market has been increasing exponentially. This growth, has generated, in the real estate companies, the need to implement effective project management tools and frameworks in order to provide important metrics of budget control, deadlines and increase risk management. This study aims to understand the different causes of risks in real estate projects and to measure the risk factors that provoke deviations, in terms of cost, time and quality in the real estate market in Portugal. To measure these risk factors, a new methodology has been implemented, namely a new real estate risk plan model for predicting the risks inherent to new construction projects. This methodology aims to produce new and more accurate strategies and plans so as to effectively respond to potential risks and thus achieve the proposed objectives through the desired success. This methodology allows companies to effectively implement a project in a timely manner in order to reduce and mitigate the probability of risk failure based on risk management tools and techniques. The results of this case study have shown that implementing a risk management project is crucial to highlight and measure the risk of project failures and that Companies must implement risk indicators or triggers that give visibility to potential risks/losses that impact company objectives and, on the other hand, establish metrics that translate the organization’s appetite and tolerance into critical risks.

Real Estate Crowdfunding Report 2020: A Comprehensive Market Report for Germany and Austria

With a market share of 76.2 percent of the total German crowdfunding market with monetary consideration (German: Crowd-investing), real estate projects make up the largest part by far. Only a significantly smaller portion is used for classic start-up finance. The volume brokered, and the number of projects rose again significantly in the past year, whereas growth rates continue to level off. With this report I would like to build on last years Crowd-invest Real Estate Report 2019 and analyze the developments of the past 12 months. In this short follow-up report, the development of the most important key figures in the market is shown. These include, among others, analyses on the development of interest rates, platforms, periods and volume.

Enhanced Cash Flow Valuation in Real Estate Management by Integrating Innovative Materials and Risk Assessment

Environmental criteria have become a critical issue for the evaluation of projects and products, particularly for businesses with extensive life cycles. Sustainability criteria and project risk management are underexplored in real estate development, and thus endanger business survival. The aim of this article is to improve the understanding of uncertainties in the real estate industry by using a stochastic risk assessment approach and to broaden the risk assessment methodology. Thus, this article investigates the importance of material selection regarding external and project risk for real estate development. Aside from conventional projects, risks are analyzed for projects with high-quality materials (HQMs) that are characterized by environmental benefits. In following a mixed method approach, we began by conducting interviews with developers about the most important risks, and later incorporating these factors into a stochastic cash-flow model. Finally, we illustrated our findings in a case study. Overall, the highest risks were shown from resource prices and changing regulations, while the rankings of the two materials differ slightly; HQMs rank higher on the created risk index than conventional materials. The cash-flow model shows that conventional materials perform slightly better than HQMs, although uncertainties within the calculations are similar. The article contributes to risk management and decision-making for real estate projects by providing insights into the discussion and analysis of the financial performance of sustainable construction material and design that might be crucial for disruptive innovations. We present a model that integrates environmental and long-term effects in the cash-flow evaluation of real estate projects, thereby increasing managerial flexibility.

Research on cost control of real estate project based on contract planning and information system

China’s real estate project cost control has entered the stage of refinement and modernization. Under the environment of promoting information construction industry in the whole country, it is urgent to build a real estate enterprise information system through effective combination of Internet + project cost control. This paper studies the project cost control system based on contract planning and information system, through the construction of the system and analysis of its application to further study the mechanism of contract planning and information system.

Evaluating Critical Factors Impacting Real Estate Development Decisions

AbstractWe find that critical factors affecting real estate project decisions can vary while market changes in the city of Ahmedabad have led to the majority of landmark buildings facing obsolesce, redevelopment and spatial redundancy. Case studies can assist in data collection in the cultural context and accommodate indirect observations of the variables analyzed in the early stages of research (Teegavarapu & Summers, 2008; Rowley, 2002). Decisions have led to capital losses for some, while bringing about profitable opportunities for developers who take timely risks.We also find that the land pooling technique used by the State in city development has successfully promoted land banking for public purpose but has also contributed to speculative land price appreciation. AHP rankings show that the surveyed practicing developers prioritized location factors such as neighborhood character and availability of land above land use zones and land auctions. Among project factors, FAR (Floor Area Ratio), abutting road width and road frontage of the land ranked higher compared to building design. In the professional practice category, the availability of finance, the timing of project announcement and past project experience of the developers ranked higher compared to brand value and speculation.

Short-Term and Long-Term Discount Rates For Real Estate Investment Trusts

How should we discount cash flows generated by real estate projects up to 30 years in the future? In this paper, we develop a methodology to estimate the term structure of discount rates. We provide empirical estimates of the yield curve for the REIT market, and three subsectors: Equity, Mortgage, and Hybrids. We explore three empirical hypotheses related to the behavior of the yield curve: First, we examine whether the term structure for REITs should be upward or downward sloping. Second, because REIT betas tend to be counter-cyclical, we examine the hypothesis that discount rates implied by our term structure model should be higher than those implied by the traditional CAPM. Third, in the spirit of Campbell 1991, we decompose the variance of REIT prices into variation due to the cost of capital and variation due to expected cash flows and find some unexpected results.

A sustainability index for anthropized and urbanized coasts: The case of Concón Bay, central Chile

The level of anthropization in one of the most urbanized areas of central Chile (Concón Bay, 33°S) is analyzed using a Coastal Sustainability Index (CSI). It is constructed from variables associated with driving forces (pressures) acting on geomorphological units with a known level of fragility (reference). The coastal conservation and intervention status was determined using analytical hierarchy process (AHP) and frequency ratio models combined with GIS. A correlation between driving forces and a high level of sustainability indicates a high degree of conservation of these geomorphological units, while a correlation between driving forces and a moderate or low level of sustainability indicates a high degree of intervention and little conservation of these natural units. It was established that 89.7% of the total area of Concón Bay presented low or moderate levels of sustainability, associated with residential and industrial uses and proximity to major roads. The high sustainability areas account for only 10.3% of the total area and consist of wetlands, beaches and dune fields that are under great pressure from real estate projects and various economic activities. Based on this index and the determination of areas with different sustainability levels, it is possible to orient decision making in land-use planning to control the driving forces in highly anthropized, urbanized coastal zones in order to incorporate conservation measures for coastal ecosystems of high natural and cultural value.