Risk Management of Investment in Urban Renovation

Urban renovation, pathway construction, repair, and development, as well as the renovation of the neighborhoods are among the essential responsibilities vested in the municipalities. Due to the municipalities’ impotence in providing huge financial resources which is in fact necessary, the new approach urges that the private sector be involved in the process. If the expected revenue is guaranteed to be earned and investment risk is lowered to the least possible, the participation of the private sector in urban renovation is actualized. On one hand, the prospect of the interest rate should be so much that theinvestment is fostered in the field and, on the other hand, the prospect of the risk of investment should not be in a way that prevents investment in urban renovation.This article, for the first time, investigates different investment risks in urban renovation plans and projects and offers methods for managing such risks. Promoting and stabilizing the culture for wide-ranging participation of all the responsible and beneficiary elements and factors in the urban renovation plan, creating a trustworthy atmosphere, and emphasizing the supporting presence of both the municipalities and the government in tandem with the private sector to invest in urban renovation as well as passing laws andoffering appropriate methods for accumulation of the worn-out texture where renovation is in the agenda are the resultant factors in reducing and managing investment risk in urban renovation.