The costs and risks of waiting in urban transformation in 5 items

Master architect Emrullah Yedikardeş explains the cost of waiting in 5 items as follows:

CALCULATION IN 5 STEPS

"The waiting cost in urban transformation does not consist of a single item. The calculation should be made on at least five items.

The most important of these is the change in construction costs. Increases in labor and material prices may make it difficult to receive a conversion offer received today under the same conditions in the future.

The second important item is rent. The rent to be paid by the rightful owner who will move into temporary housing during the transformation constitutes an important part of the total cost calculation. The change in housing rents directly affects the transformation budget.

Financing conditions stand out as the third important topic. Changes in interest rates and access to credit conditions can directly affect the total financing cost of the transformation.

The fourth item is the maintenance, repair, installation and energy expenses of the old building. As the structure ages, these expenses continue during the waiting period and may increase over time.

The fifth and most important element cannot be measured economically: Earthquake risk. You can put numbers in front of all other items. However, you cannot measure the risk of an additional year spent in an unsafe structure with money. For this reason, it is necessary to consider urban transformation not only as a real estate investment, but also as a safe life investment.”

Emrullah Yedikardeş said that cost pressure in urban transformation brings with it another risk. He pointed out that rights holders' preference for only the lowest bid due to economic concerns could result in greater costs in the long run.

"A house is built to be used for 50-60 years or even longer. Therefore, it is not right to make a decision by comparing a few figures. The contractor's financial strength, past projects, technical competence, assurances in the contract, materials to be used and delivery conditions of the project should be examined together," said Yedikardeş, adding that projects that are left unfinished or that constantly generate additional costs may be much more expensive than a reliable offer that seems higher at the beginning.

“OLD RESIDENCE ALSO HAS AN OPERATING COST”

Stating that another heading that is often overlooked in the transformation calculation is the cost of using old residences, Yedikardeş said that the need for maintenance and repair increases as the building ages.

Pointing out that old installations, insufficient thermal insulation, the need for maintenance of common areas and energy consumption create a constant burden on the household budget, Yedikardeş stated that energy efficiency in new residences has now become a part of the economic value.

Yedikardeş said, "The value of a new building should not be measured only by its square meter and sales price. Security, energy consumption, maintenance need and long-term usage cost all constitute the real economic value of the house."