How can you evaluate real estate development risks in different cultures?

Development Risk evaluation in any market is somewhat subjective as each client (whether they are new or established in a market) can have different strengths which can potentially mitigate some risks that the broader market rates highly.

Imprescindível! O fluxo da incorporação é longo, a etapa de análise do ambiente regulatório de forma criteriosa é importante para saber onde se está “colocando os pés”. A empolgação e vontade de expandir pode atrapalhar e deixar a visão de negócios turva. Entrar em uma nova cidade ou país requer muitos estudos, análises, conversas, relacionamento, etc. Uma nova operação é custosa financeiramente e muita vezes não se permite margem para erros. No Brasil o ambiente regulatório de forma geral não é atrativo, você encontra prefeituras com processos inexistentes ou mal feitos, corrupção, falta de estrutura, etc. Com tudo isso, essa etapa se torna ainda mais importante.

💡 Forming a focused study and research team is a basic requirement for development in other lands and cultures. We need to acquire, verify, and then analyze data. 🔎 Then playing in the field and employing consultants, specialists, and local/regional representatives and contributing them to the income plan, even in a very brief way, can be very effective because now they are our beneficiaries and not just an employee or a simple consultant. ✔ We turn the sum of all this information into a brief or an economic justification plan and judge it with our key partners and senior consultants. Now, with analyzes such as ROI or SWOT, we can accurately analyze risks, opportunities, revenues and costs. Let's make the best decision.

This is a very broad question, however one way is to take a look at the history of development in each specific culture. See the history of litigations, vacancies, political climate and legal stability. Another gauge is to understand the statistics relevant for bureaucracy as well as corruption. These are usually directly in line with the risk. Then we can move further and understand the construction market and general business behavior in said culture. This is again a very broad subject and can be boiled down to very granular subjects.

One of the most important factors to consider when developing real estate in a foreign country is the legal and regulatory environment. You need to be aware of the laws and regulations that govern land use, zoning, permits, taxes, environmental protection, contracts, dispute resolution, and property rights. Development history of the country and understanding the cultural demands. You need to estimate and analyze the costs, revenues, cash flows, returns, and risks of your project. You need to also consider the currency, inflation, interest rate, taxation, and exchange rate risks that could affect your financial performance.

A cultura do local define como o cliente espera ser tratado, além de direcionar o produto que vende na região. Fundamental um estudo completo sobre a cultura e ter pessoas locais envolvidas no projeto.

Cada mercado tem sua particularidade quanto a produto, o que interfere no tamanho da unidade, programa, itens de lazer, prédios ou casas, entre outros. Existem cidades que respondem melhor com imobiliárias e outras cidades que respondem melhor com house própria. E preciso atentar-se a diversos desses fatores antes de definir não só o produto, mas também quanto as ações de marketing e estratégia de venda.

Entender que cada região tem suas particularidades e suas demandas não é só fundamental como básico. Um produto que cabe em uma determinada região, não necessariamente é o ideal para outra. Itens de lazer, posição das torres, tamanho dos apartamentos/casas, preços praticados, etc. Tudo isso precisa ser olhado de forma "micro" (na cidade que se quer empreender).

Understanding real estate development risks across cultures requires cultural sensitivity and thorough analysis. Better to know 1st by local customs, laws, and business practices, as they significantly influence real estate ventures. Vitally important to know the economic stability, political factors, and regulatory frameworks within each culture. Checking market demand, social opinion towards the property, and development. For instance, Dubai is open to all nationalities, easy process of purchasing property, Golden visa offers, and one of the main reasons is Tax-free.

Estudar a cultura é extremamente necessário, mas se adaptar aos diferentes cenários sócio econômicos e de igual importância. Cada vez mais nos deparamos com a expansão imobiliária chegando ao interior das cidades, habituadas com casas horizontais grandes, com expectativa de residenciais de igual tamanho, se deparando com imóveis verticais cada vez menores, devido a necessidade de venda de metro quadrado maior, para compensar valores de terra e construção. Se adaptar em projetos menores mantendo parte da cultura de consumo da região e extra mente necessário

You always need to consider how your project will be perceived and received by the LOCAL stakeholders, such as the residents, the businesses, the government officials, the news media, and any local activists. You should aim to create recognizable value and clear benefits for the local society and environment, as well as for your own business. Communicate that clearly. Find your supporters. Make it easy for them to "be on the side of progress in the community" and figure out a way to give something back...

Evaluating real estate development risks in different cultures involves considering factors like legal frameworks, economic stability, and cultural nuances. Conduct thorough due diligence on local regulations, political stability, and economic conditions. Understand cultural preferences, local business practices, and potential challenges unique to each culture. Engage local experts and establish strong partnerships to navigate cultural complexities. Additionally, assess market trends, demographic shifts, and historical data to gauge the overall risk landscape in each specific cultural context.

In my opinion, I understand that this impact on real estate is a key factor. We no longer want to develop archaic projects based on raw materials that harm the environment. Companies in the sector have developed clean and greener alternatives in terms of construction materials. Greater environmental efficiency, less cost, better products, greater environmental projection of the final product (property). All developers who are dedicated to developing real estate projects with a strong connection to environmental protection will be the ones who benefit most from the active search for the end consumer.

In my years of experience in real estate, I've found that understanding the social and environmental impact of a project is not just about compliance, it's about respect. It's about understanding that you're not just building on land, you're becoming a part of a community. Engaging with local stakeholders is crucial, not just to avoid potential pitfalls, but to build lasting relationships that can lead to future opportunities. Remember, real estate is not just about property, it's about people.

Dois casos que posso citar como exemplos: Um em uma cidade do interior de SP que o Bairro tem histórico de infestação de escorpiões e, determinado bairro, muito agendado e antigo é evitado pelos constantes casos de acidentes, derrubando drasticamente o preço do imóvel. E, um segundo caso, também no interior, que o bairro é construído sobre um antigo lixão o que faz com que muitas baratas invadam as casas e prédios. Quem não conhece a história, cai na armadilha. E preciso conhecer a fundo o porque de determinadas localizações e o histórico da cidade para evitar cair em uma “roubada”.

not my line, but simply- if it doesn’t make money, it don’t make sense why take all the risk for no/little return for the headaches that come with developing a site

For starters, it’s always going to boil down to the ability to pay. So I know if I can get the thing built, and my market study and all other due diligence says people can and will pay, then that’s the culture.

Ease of doing business and having a single window for approval and clearances play a vital role in shaping the formative decision for a project or a real estate investment . In addendum fixed commercial interest rate of the federal Bank and the inflation of the working country are corelative factors for appendment of the finances to follow as it should return to hedge inflation as a safety band. Functionally, tax holidays for any EWS or special zone sets and presents better margins in an overall financial perspective to be factored upon. Lastly subsidy on any variable component is also an factor to be considered .

In my experience, the pricing policy applied in the sale of properties is one of the most important analyzes that need to be done to guarantee a successful start, in some cases the standards offered may present triggers that minimize the risks of bad sales, where in addition to Analyzing buyers' ability to pay you can adjusting the way this process is carried out improving profitability.

Com os valores de terra cada vez mais caros devidos as mudanças de zoneamento (São Paulo) um boa negociação, associado a projetos com Ticket acessíveis + custos de obras + licenciamento e aprovações e complementares, com equipe de vendas e MKT preparada + associado a velocidade de vendas sem Otimismo, É uma possibilidade de sucesso, estudos conservadores, considerando cenários pessimistas e não associando NR’s para viabilidade financeira positiva. Diminuir a possibilidade de erros seja a forma de viabilizar bons projetos.

Evaluating real estate development risks across diverse cultures entails a nuanced approach. It involves understanding local regulations, political stability, and economic conditions, including currency risks. Cultural insights are crucial, guiding project design and marketing strategies. Thorough market research, consideration of infrastructure and social trends, and legal due diligence are essential. Mitigating risks involves adapting to local dynamics, staying environmentally compliant, and implementing robust risk management strategies. By combining these elements, a comprehensive risk assessment can be tailored to the specific cultural and economic nuances of each real estate development project.

The risks of real estate development in all cultures may be similar, and the most important of these risks are the following: - Depression in the real estate market due to economic conditions and wars in some countries, which also makes investors move away from real estate investment in these countries,,..

In my experience, a well-structured exit and contingency plan is like a well-planned chess game. You need to anticipate the moves of the market, the local culture, and the legal environment. It's not just about having a plan B, but also a plan C and D. Regularly reviewing and adjusting your strategy is crucial, as the real estate market can be as unpredictable as a chess opponent. Mitigation of potential risks is akin to protecting your king in chess - essential for survival and success.

Perfeita colocação. Na verdade um estudo completo de incorporação e planos estratégicos reduz e muito a chance de não termos sucesso no lançamento de produtos.

The assessment of the risks of real estate development in different cultures is directly in line with public housing policies. I have been able to closely follow the changing landscape in one of the main cosmopolitan cities in the world: the city of São Paulo. One of the main projects was the so-called consortium urban operations that made it possible to divide the city into neighborhoods with greater demand and preference for housing, allowing an increase in the height of real estate projects through the sale of public certificates to large construction companies.

The Rule of triple “L” has to be followed in all risk categories analysis as a golden one, and in a light of cultural aspects, as well. Although to figure out the clues for such deeper cultural assessments represents the bigger challenge for the RE developer starting new project abroad for the first time. Therefore, I can recommend to partner with experienced local developer as a starting point, to avoid your “strategy being eaten for breakfast by the local culture”.

In my experience, development in itself can be inherently risky. Wherever you decide to develop property, make sure you have access to secure funding and have a couple of backup plans. Things almost never go to plan, and even the most experienced developers run into problems with design changes, engineering issues, delays, cost overruns, supply chain issues and a myriad of other factors. Don’t take on anything that you don’t understand inside and out and that you are taking a gamble on. Basically, don’t let your emotions get in the way and if the numbers don’t work, don’t do it.

The availability and quality of infrastructure and technology can significantly affect real estate developments. This includes transportation, utilities, digital connectivity and the adoption of smart technologies in building design and construction.

au delà de la faisaibilité, de la rentabilité d'une opération de promotion immobilière, il faut considérer et apprécier la capacité du promoteur à être pérenne et donc évaluer la santé financière et extra financière de l'opérateur, et donc considérer les perspectives économiques et financières de l'ensemble des opérations en portefeuille qu'il porte, et élargir aussi l'analyse aux actifs et passifs immatériels, réputation, capial relationnel...actifs précieux en cas de retournement de marché ou exacerbation concurrentielle, et transformer les biais culturels en leviers de création de valeur.

El gran error de las empresas (no solo las ligadas al desarrollo inmobiliario) es asumir que lo que funciona en un pais funciona en otro. Para ingresar a un nuevo pais no solo se trata de saber la demanda que hay por un determinado activo (logico que es basico), si no tambien el contexto legal y politico del pais (normativas, marco juridico, etc) y la cultura pais (ningun pais de Latinoamerica funciona igual al otro). Para evitar cometer errores siempre es buen asesorarse por equipos con experiencia comprobada en el pais o asociarse con un grupo validado por el mercado, muchas empresas se asesoran a nivel mundial con la misma empresa que les funciono en algun pais y pagan caro ese error.