Is the Boogeyman going away?
There has long been a dream of the simplification of urban planning licensing. What if we could imagine a reality where only six months passed between hiring the project and starting construction? It might seem like a utopian thought. Urban licensing is undoubtedly a boogeyman that haunts every real estate investor, and only the most skillful manage to escape its grasp.
The reduction of urban operations subject to prior control, simplification of some procedures, and improvement of licensing platforms will substantially shorten the timelines for these processes, reducing uncertainty in investment timeline definition.
Despite the apprehension felt by several players, whether due to excessive accountability for technicians or unexpected surprises during construction and its inspection, the anticipated approval of a well-polished “Simplex” will be a significant step toward modernizing our obsolete and limiting system.
An efficient and transparent licensing process will undoubtedly impact the real estate market and the way we intervene in the territory. Process efficiency will lead to time, resource, and cost savings, as well as a material reduction in inherent risks. It will encourage investment, innovation, territorial intervention as well as housing supply. It will promote market dynamics and competition, directly affecting construction costs.
Undoubtedly, there is a need to change procedures, the range of legislation applicable to licensing, and the scattered modes of administrative machinery operation. It is hoped that the transitional regime is clear and fair, in order to result in a system that also promotes legal certainty for all stakeholders.
To overcome the boogeyman, we need the courage to change and the humility to correct.
Opinion article by Marta Falcão, Head of Urban Planning, published in print edition 243 of Vida Imobiliária, entirely dedicated to the theme of “Cities, Urban Planning & Structural Projects.”