Maintenance, building depreciation and land rent

This paper aims to explore three closely related issues: building maintenance, building depreciation, land rent. What makes these three issues deeply connected is the market value of the property. The choice to carry out preventive or corrective maintenance depends on how the building is affected by age (physical depreciation) and on the trend of land rent. Physical depreciation and land rent are phenomena that act with opposing force in determining the market value of an asset. Because the maintenance is strongly influenced by this value, it becomes crucial to identify the factors that cause it. The combination of the dynamics of two phenomena can (or not) make convenient maintenance. The right interpretation of the correlations in these problem areas can support a better property management / maintenance by owners, managing agents and related parties

Analyzing Periurban Fringe with Rough Set

The distinction among urban, periurban and rural areas represents a classical example of uncertainty in land classification. Satellite images, geostatistical analysis and all kinds of spatial data are very useful in urban sprawl studies, but it is important to define precise rules in combining great amounts of data to build complex knowledge about territory. Rough Set theory may be a useful method to employ in this field. It represents a different mathematical approach to uncertainty by capturing the indiscernibility. Two different phenomena can be indiscernible in some contexts and classified in the same way when combining available information about them. This approach has been applied in a case of study, comparing the results achieved with both Map Algebra technique and Spatial Rough Set. The study case area, Potenza Province, is particularly suitable for the application of this theory, because it includes 100 municipalities with different number of inhabitants and morphologic features

Spatial Analysis and Statistics for Zoning of Urban Areas

The use of statistical data and of the neural networks, capable of elaborate a series of data and territorial info, have allowed the making of a model useful in the subdivision of urban places into homogeneous zone under the profile of a social, real estate, environmental and urbanist background of a city. The development of homogeneous zone has fiscal and urbanist advantages. The tools in the model proposed, able to be adapted to the dynamic changes of the city, allow the application of the zoning fast and dynamic

The compensation for the expropriation of a Land subject to Local Government use. The case of a Land Lease.

The expropriation of property subject to Local Government uses constitutes a particular case whose regulation, as far as what concerns benefits and claims, must be sought in special rules very often done a long time ago or under different Court rulings. The question becomes very sensitive when the problem relies on who is the true owner of the property. The key issue is to investigate the origin of the issue in order to determine if the expropriated land belongs to the Local Government, or only the lease. The study was inspired by an actual case which shows how the economic condition of the land, by varying the nature of the land and therefore all the claims on it

Real Options for risk analysis in estimating the capitalization rate

A suitable cap-rate is generally determined through an analogical process in order to estimate the value of any real estate through the capitalization of the incomes. The analogy relates to the risk and duration of similar investments. There are numerous methods to rationalize the valuation of the cap-rate. Appraisals have a certain degree of uncertainty in all these methods. This paper proposes a methodology which removes any uncertainty when evaluating the cap-rate. This is achieved through the combination of the formal logic of the Ellwood’s model and the Real Options Analysis

An empirical analysis of winning bids in public procurement in the Italian construction sector

The survival of a construction company depends on its ability to minimize the total cost of production in the long run. The long run cost curves reflect the production technology and the organizational structure of a company. These elements are the result of choices made by the entrepreneur and they are certainly influenced by the economic environment where the company is working. This study analyses the discount of the winning bids in the contracts for public works in the construction industry recorded over a sufficiently large and homogeneous period with respect to general external conditions. Based on known microeconomic models and on some specific assumptions, the winning discounts have been used to draw the long run cost curves. In turn, these cost curves have allowed to detect and classify different business strategies in the organization of companies operating in different Italian regions. The work must be attributed equally to the three authors

The effect of taxation on investment demand in the real estate market: The Italian experience

This study investigates the effect that property taxation has on investment in the real estate market. There is a close relationship between investments in the real estate market and taxes, local communities, public policies and economic development. The analysis was developed with reference to the Italian real estate market and its tax regime. In Italy, taxation on real estate affects possession, transfers and income. These three tax rates vary according to the subjects who exchange assets and manage them, to the intended use of the real estate property and to the options for choosing the type of tax regime permitted by law. On the basis of these parameters, a financial analysis of real estate investment is constructed and simulated in order to understand to which types of taxation investment is most sensitive. The results showed that a change in income taxation can have an important effect on the investment choice. This evidence may also suggest fiscal policy actions aimed at stimulating the real estate market

Credit risk management of property investments through multi-criteria indicators

The economic crisis of 2008 has highlighted the ineffectiveness of the banks in their disbursement of mortgages which caused the spread of Non-Performing Loans (NPLs) with underlying real estate. With the methods stated by the Basel III agreements, aimed at improving the capital requirements of banks and determining an adequate regulatory capital, the banks without the skills required have difficulties in applying the rigid weighting coefficients structures. The aim of the work is to identify a synthetic risk index through the participatory process, in order to support the restructuring debt operations to benefit smaller banks and small and medium-sized enterprises (SME), by analyzing the real estate credit risk. The proposed synthetic risk index aims at overcoming the complexity of Basel III methodologies through the implementation of three different multi-criteria techniques. In particular, the integration of objective financial variables with subjective expert judgments into a participatory process is not that common in the reference literature and brings its benefits for reaching more approved and shared results in the debt restructuring operations procedure. Moreover, the main findings derived by the application to a real case study have demonstrated how important it is for the credit manager to have an adequate synthetic index that could lead to the avoidance of risky scenarios where several modalities to repair the credit debt occur

La valutazione del rischio nell’analisi finanziaria di Ellwood per la stima indiretta di immobili urbani

To estimate the value of a real estate through the capitalization of the incomes, the determination of the suitable cap rate is generally make with the analogical process. This is usually inferred by a price-earnings ratio of similar investments. The analogy concerns the risk and the duration of the investment. There is a wide range of methods to rationalize the indirect valuation of the cap rate. However, in all these methods the appraisal holds uncertainty. In this paper a methodology which removes uncertainty in the valuation of the cap rate is proposed. In this method the uncertainty is transformed in risk. The aim is achieved by the combination of the formal logic of the Ellwood’s model and the Real Options Analysis. Therefore, the algorithm defined has been implemented in a software for the real estate appraisal, described by an immediate and simply user interface

LA PIATTAFORMA HBIM PER LA CONSERVAZIONE E LA GESTIONE SOSTENIBILE DEI CENTRI STORICI

The revitalization of the building heritage of the historic centers represents an opportunity for the sustainable development of the built environment, in line with current European policies on urban regeneration. The building heritage, which characterizes Italian historic centers, has unique aesthetic and architectural-structural features in the world. They mainly consist of masonry buildings placed in aggregate that make complex urban plots. The inherent fragility and high seismic vulnerability of these types, associated with a very rigid urban layout, give these urban systems a poor resilience. The increase in resilience can only be achieved through strategies for revitalization and urban redevelopment, planned starting from an accurate and organic cognitive framework of the building heritage. Current technologies in the field of survey techniques, such as Laser Scanner and Aerofotogrammetry through drones, and BIM in the field of three-dimensional information modeling, represent the tools that are well suited to achieving this goal. This contribution provides an innovative methodology aimed at creating an HBIM platform. It is a support tool for those involved in the management of historic real estate assets. The information that can derive from these approaches is also indispensable in the definition of a fundamental resilience measure in the sustainable management of seismic risk