Real Estate Risk Management in the City of Ibarra in Ecuador, According to the Riskbok Methodology

Abstract

The real estate sector in Ecuador is currently showing an upward trend. Various factors show this as the increase in public spending on the construction of housing projects, the increase in population, the acquisition of real estate as the best form of investment by Ecuadorians and migration from rural to urban areas. This makes the housing deficit a pending issue for the state. Risk management in projects is a useful tool to help achieve the objectives of these projects. Despite this, this type of technique is not currently the object of attention in the geographical environment analyzed. This contribution carries out a process of identification, analysis and assessment of factors that may compromise reaching the expected profitability in a real estate development project in the city of Ibarra. It starts from the risk management methodology from the perspective of project management and is complemented with a specific focus on real estate risk management. The implementation of the process allows developing an understanding of the risk factors that can affect the results of the project and can be extrapolated to other geographical contexts. © 2021 by the authors