Investigation of Value and Construction in the 'favela' Paraísopolis

1. Daan van den Berg, Jasper Overkleeft
Valuating the Informal Built
Environment
Presentation 5
17-04-09 14:00-18:00
FAU-USP Lecture Hall
IN.SP PROJECT PRESENTATIONS 2009

2. jasPer overkleeFt
“With My background in building technologie, it’s
interesting to look at the building environMent oF the
inForMal settleMents oF sao Paulo. What Methods and
Materials are used?”
-Valuation of informal building enVironment-
daan van den berg
“With My background in real estate & housing,
valuation oF these settleMents is a toPic that is
interesting but diFFicult to adress, because oF the
highly Fluctuating Market and a Weird Willingness
to Pay”
Project outPut Field Work Materials Model
-Motivation- overlaP checklist tiMeline conclusion
-1-

3. creating a checklist and a mathematical model (excel) based on
the valuation oF dutch real estate Projects, but adaPted in such a Way that it
can be used to valuate inForMal settleMents. the checklist Will be used to ForM
an analysis FroM Which certain Variables For the Model can be derived.
creating a timeline With diFFerent dWelling tyPologies and their building
methods and materials Within inForMal settleMents. deriving FroM this
analysis the construction costs and ProPosing soMe construction
enhancements.
-Project outPut- Field Work Materials Model
Motivation overlaP checklist tiMeline conclusion
-2-

4. Project overlaP Will occur on the Points oF analysing the saMe inForMal
settleMent (ParaisoPolis) and on calculating Values. Meaning
Market value, construction costs and actual value. this Way the three can be
coMPared and can conclusions For inVestment be draWn.
Project outPut Field Work Materials Model
Motivation -overlaP- checklist tiMeline conclusion
-3-

5. Project outPut -Field Work- Materials Model
Motivation overlaP checklist tiMeline conclusion
-4-

6. Project outPut -Field Work- Materials Model
Motivation overlaP checklist tiMeline conclusion
-4-

7. main toPics that Will be adressed in the checklist For inForMal
settleMents are the FolloWing:
- coMMon object sPeciFics - construction
- housing Market (deMand) - Facilities
- housing Market (suPPly) - governMent
- Financial
every Main toPic has its oWn subtoPics, this Way the checklist can be a
guideline For the investor to create a good iMage oF the ProPerty that has
to be valuated. note that not every Point has to be adressed equaly.
Project outPut Field Work Materials Model
Motivation overlaP -checklist- tiMeline conclusion
-5-

8. common object sPecifics is divided in the FolloWing subtoPics:
- naMe oF the coMPlex
- number of dwellings Per tyPe
(nuMber oF garages or Parking Places)
(nuMber oF other rooMs)
- year oF construction
- lot size (M2)
- size oF dWelling Per tyPe
alley: r$ 10.000 viela:
r$15.000- Main street: boco:r$40.000-
r$25.000 r$40.000 r$60.000
Project outPut Field Work Materials Model
Motivation overlaP -checklist- tiMeline conclusion
-5-

9. Prize: Prize: Prize:
r$ 17,30 r$ 19.90 r$ 0.40
steel concrete ceraMic
$ 7.86 $ 9.04 $ 0.18
reinForceMent Per 25kg brick
€ 5.94 € 6.83 € 0.13
Per M1 Per M2
Prize: Prize:
Prize:
r$ 6.70 r$ 0.53
Floor beaMs ceraMic corrugated r$ 21.90
$ 3.04 $ 0.24
Per M1
Floor sheets $ 9.55
€ 2.30 € 0.18
Per M2 Per M2
€ 7.52
coMMon dWelling rebuild value Percentage oFF building cost
rrooF 10%
rWalls 24%
rFloors 35%
rconstruction 5%
rFoundation 21%
total rebuild cost : r$ 3500
Project outPut Field Work -Materials- Model
Motivation overlaP checklist tiMeline conclusion
-6-

10. -7-
g
t in
ra
co
de
g
in
ild
bu
de
t si
ou
ng
hi
is
Fin
-tiMeline- conslusion
y
l it
Pa
ci
ni
n
Mu
io
it
gn
Model
co
re
a
tr
ek
el
as
Materials
es
ic
rv
se
checklist
r
te
Wa
as
es
Field Work
ic
rv
se
g
in
ild
overlaP
bu
ng
n di
Pa
Project outPut
ex
g
in
ild
bu
Motivation
ng
gi
an
ch
t
en
l eM
tt
se
st
Fir

11. Project outPut Field Work Materials -Model-
Motivation overlaP checklist tiMeline conclusion
-8-

12. Project outPut Field Work Materials -Model-
Motivation overlaP checklist tiMeline conclusion
-8-

13. Project outPut Field Work Materials -Model-
Motivation overlaP checklist tiMeline conclusion
-8-

14. the inForMal settleMents are ForMing a large Part oF the city oF sao Paulo and
are in a constant state oF deVeloPment and MoveMent, still groWing and
exPanding. PeoPle have a certain willingness to Pay to stay in such
neighbourhoods, there is a Market deMand. but isn’t the Price versus quality
ProPortion long gone in these Places? estiMating the actual value oF real estate
ProPerty can helP Making the housing Market More transParant For inves-
tors, and can helP to create More tenant certainty Which can translate
in a better quality oF the building environMent.
Project outPut Field Work Materials Model
Motivation overlaP checklist tiMeline -conclusion-
-9-

15. IN.SP PROJECT PRESENTATIONS