VI - World Planning Schools Congress

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Improving financing conditions for land readjustment projects: a real estate appraisal model
(AESOP, 2016) Antunes Ferreira, José; Condessa, Beatriz; Morais de Sá, Ana; Almeida, Joana
In PERCOM research project results it was identified the main reasons that contribute to a low level of execution of urban development projects involving several landowners making them unattractive for bank financing. In order to conceptualize a model for overcoming this problem (financing) is mandatory to identify the reasons why banks do not finance urban development involving several landowners and define new procedures to mitigate these reasons. With the aforementioned objective in mind, a review of the state of the art of bank financing for urban development projects was carried out. The results of the bibliographic research allowed for the conclusion that this area has been the object of very little study, thus underlining the importance and topicality of this research. As Korthals Altes (2010: 929) noted, “Past research has revealed that [urban projects developed by] governments are often tempted to underestimate the costs (…) The profits made by local authorities from land development are growing, while the costs, revenues, and results are, on average, underestimated by local authorities. This may have consequences for the explanation of budget overruns and the solutions that may be effective in countering this problem”.