Risk management in real estate development process from a financial investor perspective; Bank Muscat

Abstract

WEEK 1-WEEK 2: UNDERSTANDING THE REAL ESTATE SECTOR: Through qualitative research, an understanding about the risks involved in real estate sector was developed. Real estate was assessed from both a sector and a portfolio asset class perspective. In doing so, it required deep research about each of these domains, the players involved, and significance of real estate risk diversification and mitigation in each of these domains. A report was prepared on these findings and discussed with the mentor. The discussion clarified many ambiguities in my perception of the project and gave a direction. WEEK 3- WEEK 6: LIMITATIONS AND CONSTRAINTS OF A FINANCIAL INVESTOR The project objective was narrowed down to real estate development process. In a development process, the limitations or scope of action of a financial investor were analyzed. Apart from this, all the other parties involved in a real estate development process were found out. The methods used were discussion with industry experts and secondary research. ANALYSIS OF RISKS IN REAL ESTATE DEVELOPMENT PROCESS All the risks that a financial investor is exposed to in a real estate development process were found out. In the process, some of the industry measures to mitigate these risks or transfer these risks to the other parties in the development process were discovered. WEEK 6- WEEK 8: REPORT PREPARATION During this period, the findings about the risks involved in each stage of the development process and their possible mitigation strategies were presented in a report. The report was discussed with many industry experts and verified. A presentation on my findings and understanding was presented to my mentors and evaluators.