Urban Risk Management

Identification of common urban risks

Urban risks represent one of the most frequent and potentially costly contingencies in real estate transactions, especially in Bolivia where urban planning has undergone significant changes in recent decades. Identifying these risks in time allows for informed decisions and protects real estate investment.

Risks related to land use regulations

• Incompatibility with permitted uses: When the activity planned for the property (residential, commercial, industrial) does not correspond to the uses authorized in the area according to the Territorial or Urban Management Plan.
• Recent changes in zoning: Modifications in regulations that can affect both positively and negatively the value and development possibilities.
• Specific limitations: Particular restrictions such as maximum height, mandatory setbacks, Land Occupation Index (FOS), or Total Occupation Factor (FOT) that limit construction benefit.

Risks associated with infrastructure and public projects

• Affectations by planned works: Road infrastructure projects, public services, or equipment that could require partial expropriations or generate administrative easements.
• Urban renewal plans: Renewal programs that could substantially modify the environment and affect property valuation.
• Restrictions by proximity to critical infrastructure: Limitations derived from closeness to high-voltage electrical networks, gas pipelines, airports, or other infrastructures that impose specific conditions.

Environmental and heritage risks

• Natural risk zones: Location in areas susceptible to flooding, landslides, or seismic risks that imply special construction restrictions.
• Heritage protection: Properties with historical or architectural value that are listed or in protection areas, with limitations for renovations or modifications.
• Environmental constraints: Restrictions derived from proximity to protected natural areas, bodies of water, or environmental preservation zones.

Administrative risks

• Unregularized buildings: Constructions carried out without the corresponding permits or with unapproved modifications.
• Non-formalized changes of use: Transformations in property use without updated licenses or permits.
• Pending urban obligations: Cessions, compensations, or urban charges derived from previous developments and not executed.

Mitigation procedures and recommended follow-up

The identification of urban risks is only the first step. Our consultancy offers concrete strategies to mitigate these risks and perform effective follow-up that protects real estate investment over time.

Preventive mitigation strategies

• Exhaustive regulatory analysis: We perform a complete study of all applicable regulations, including general plans, partial plans, specific ordinances, and any other regulation affecting the property.
• Verification of administrative background: We review previous urban files, licenses granted, complaints, or sanctioning procedures that may exist on the property.
• Binding technical consultations: We manage formal consultations before competent authorities to obtain official certificates or reports on the property's urban situation.
• Preventive feasibility studies: For investment or development projects, we perform prior urban feasibility analyses that identify possible regulatory obstacles.

Regularization procedures

When we identify urban irregularities, we implement structured processes for their regularization:

1. Situation diagnosis: We determine the exact scope of the irregularity and its applicable legal framework.
2. Alternative evaluation: We analyze the different available regularization paths, considering deadlines, costs, and success probabilities.
3. Technical documentation preparation: We prepare the necessary documentation (plans, reports, certifications) for the regularization process.
4. Administrative management: We perform all necessary procedures before the competent administrations.
5. Condition negotiation: When possible, we negotiate favorable conditions for regularization (deadlines, sanctions, compensations).
6. Implementation of corrective measures: We execute or supervise the physical modifications necessary to comply with regulations.

Continuous follow-up and monitoring

Our commitment extends beyond the initial identification and mitigation of risks, offering a follow-up system that guarantees long-term peace of mind:

• Regulatory changes monitoring: Continuous monitoring of modifications in urban plans, ordinances, or regulations that may affect the property.
• Public projects alerts: Tracking announcements, tenders, or infrastructure projects that may impact the property's environment.
• Periodic reviews: For investment portfolio properties, we perform periodic verifications that guarantee continuous urban compliance.
• Advice for adaptation: Facing regulatory changes, we propose adaptation strategies that maximize opportunities and minimize negative impacts.
• Preventive documentation: Maintenance of an updated documentary archive that supports the property's legal urban status.

Specialized tools and resources

To guarantee the effectiveness of our mitigation and follow-up processes, we have advanced technical resources:

• Access to updated urban databases
• Geographical Information Systems (GIS) for spatial analysis
• Simulation tools for regulatory scenario evaluation
• Network of specialized collaborators in different fields (heritage, environment, engineering)
• Client follow-up platform that allows visualizing the status of their properties

Our comprehensive approach to urban risk management not only protects real estate investment but can also transform potential problems into value-added opportunities when managed proactively and strategically.