Influence of land value in the profitability of low-income housing projects in periphery of Lima

Abstract

Investiga la influencia y contribución del valor del suelo en la rentabilidad de proyectos inmobiliarios en Lima. El enfoque de esta investigación es el análisis financiero desde el punto de vista de la oferta. Se investiga la influencia de la tierra en el retorno total obtenido por los desarrolladores de proyectos de vivienda social que fueron subsidiados por el gobierno en la periferia de Lima entre los años 2001 a 2010.

The approach of this research is financial analysis from the point of view of the supply side. This research investigates the influence of land in the total profit obtained by developers from social housing projects that are subsidized by government. This research is quantitative and exploratory, with case studies (eight projects) about Techo Propio Peruvian social housing program. The context of this thesis is the peripheral area of Lima and the period of time covered in the study is the decade from 2001 to 2010. The research question asks if the profit because of the land strategy (to buy a plot and wait time until the price increase without doing anything else) is greater than the profit because of the project itself (the cash flow obtained for the effort to sell and build dwellings).