Uncertainty and feasibility studies: an Italian case study

Uncertainty affects all aspects of the property market but one area where the impact of uncertainty is particularly significant is within feasibility analyses. Any development is impacted by differences between market conditions at the conception of the project and the market realities at the time of completion. The feasibility study needs to address the possible outcomes based on an understanding of the current market. This requires the appraiser to forecast the most likely outcome relating to the sale price of the completed development, the construction costs and the timing of both. It also requires the appraiser to understand the impact of finance on the project. All these issues are time sensitive and analysis needs to be undertaken to show the impact of time to the viability of the project. The future is uncertain and a full feasibility analysis should be able to model the upside and downside risk pertaining to a range of possible outcomes. Feasibility studies are extensively used in Italy to determine land value but they tend to be single point analysis based upon a single set of “likely” inputs. In this paper we look at the practical impact of uncertainty in variables using a simulation model (Crystal Ball ©) with an actual case study of an urban redevelopment plan for an Italian Municipality. This allows the appraiser to address the issues of uncertainty involved and thus provide the decision maker with a better understanding of the risk of development. This technique is then refined using a “two-dimensional technique” to distinguish between “uncertainty” and “variability” and thus create a more robust model.

Assessing the discourses and practices of urban regeneration in a growing region

Most research on the discourses and practices of urban regeneration in-the UK has examined case studies located in areas of relative socio-economic distress. Less research has been undertaken on regeneration projects and agendas in areas characterise by strong economic growth. Yet, it is in such places that some of the best examples of the discourses, practices and impacts of contemporary urban regeneration can be. found. In some areas of high demand regeneration projects have used inner urban brownfield sites as locations for new investment. With the New Labour government's urban policy agendas targeting similar forms of regeneration, an examination of completed or on-going schemes is timely and relevant to debates over the direction that policy should take. This paper, drawing on a study of urban regeneration in one of England's, fastest growing towns, Reading in Berkshire, examines the discourses, practices and impacts of redevelopment schemes during the 1990s and 2000s. Reading's experiences have received national attention and have been hailed as a model for other urban areas to follow. The research documents the discursive and concrete aspects of local regeneration and examines the ways in which specific priorities and defined problems have come to dominate agendas. Collectively, the study argues that market-driven objectives come to dominate regeneration agendas, even in areas of strong demand where development agencies wield a relatively high degree of influence. Such regeneration plays a symbolic and practical role in creating new forms of exclusion and interpretations of place. (C) 2003 Elsevier Science Ltd. All rights reserved.