1. Javier Mustieles 26 th June

2. 1. Introduction and background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

3. Investing money in a construction is risky To avoid risks, it is essential : Predict the profit Reduce costs

4. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

5. OBJECTIVE 2 The effect of the world economy in the construction sector Where and when is the right moment to invest OBJECTIVE 1 The cheapest or most expensive country for building OBJECTIVE 3 The most profitable country to build in. OBJECTIVE 4

6. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

7. SIMILAR STUDIES: “Turner & Townsend” Gardiner&Theobald” They talk about…  Materials costs  Key trades costs  Labour costs -PREDICT PROFIT -REDUCE COSTS

8. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

9. Procedure for the study of costs: Selection of countries for the analysis Development of the study: Analysis of the economy of the country Analysis of the housing market Simulation

10. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

11. Criteria of selection Different economic situations 3)Developed country in recession 1)Developed country coming out of recession 2)Emergent country

12. MICRO-ECONOMY The factor that has the most influence on construction costs The economy of the country MACRO-ECONOMY 2 levels of economy

13. MICROMACRO UNEMPLOYMENT RATIO GDP INDEX PERCENTAGE OF CONSTRUCTION IN GDP INFLACTION STOCK OF HOUSES WAGES INDEX BANK INTEREST RATIO COST OF KEY MATERIALS (STEEL,CONCRETE…) COST OF KEY TRADES LABOURCOST PRICE M2 OF HOUSE

14. YEARS2008200920102011 US5,89,39,629 MALAYSIA3,43,63,12,8 SPAIN10,4617,7319,9721,23

15. YEARS2008200920102011 U.S.A-0,4-3,531,7 MALAYSIA4,8-1,57,25,1 SPAIN0,9-3,7-0,30,4

16. YEARS2008200920102011 U.S.A4,33,83,43,3 MALAYSIA4,46,211,44,7 SPAIN10,610,410,19,3

17. YEARS2008200920102011 U.S.A-1,181,852,000,94 MALAYSIA2,50-1,409,7717,53 SPAIN-1,03-4,48-6,09-8,18

18. USAMALAYSIASPAIN Unemployment GDP % of construction …in GDP Wages index Unemployment GDP % of construction …in GDP Wages index Unemployment GDP % of construction …in GDP Wages index

19. STOCK DWELLINGS To know and...understand the...demand of houses PRICE OF DWELLINGS To know the profit …can be obtained In chosen countries - USA - Malaysia

20. QUANTITY IN THOUSANDS 20082009201020112012 Quantify of houses130.840130.587130.845132.474132.961 Occupied houses111.854111.711112.451114.086115.033 Empty houses18.98618.87618.39418.38817.928

21. 12%

22. (QUANTITY IN s.m)TOTAL SPACESPACE OCCUPIEDOCCUPANCY RATIO 20089,786,6037,957,75481,3 200910,072,8098,242,86481,8 201010,660,7968,597,42480,6 201111,263,0698,954,34479,5 2012 12,071,1959,553,52679.1

23. 17%

24. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

25. To carry out the simulation three steps are followed: Obtain information about: Costs of key materials Trades, Labour preliminary costs Interest rates Create a house model Find out the price of that house in the real market

26. The information is based on: Websites Similar studies of this field Examples: “Turner & Townsend” “David Langdon KPK”

27.  Concrete detached house – 200m2 built.

28. REQUERIMENTS OF THE HOUSE: SAME TYPE / SAME NUMBER OF FLOORS. SAME QUALITIES. SAME SURFACE. BUILT IN THE YEARS 2011-2012. SEARCH IN DIFFERENTS LOCATIONS / STATES / REGIONS. GET A BIG NUMBER OF THEM.

29. 2008200920102011 Total cost300.317,03287.068,47286.043,59294.363,74 Cost m21.501,591.435,341.430,221.471,82 Price house1.682,941.648,271.577,721.537,96 Profit contractor margin per m2 181,35212,93147,5066,14 10,78%12,92%9,35%4,30%

30. 2008200920102011 Total cost146.462,63143.228,74150.536,44157.100,57 cost/m2732,31716,14752,68785,50 Price house972,021.024,601.105,861.150,31 Profit constructor margin per m2 239,71308,46353,17364,81 24,66%30,11%31,94%31,71%

31. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

32. LOW COSTS HIGH PRICE OF THE DWELLINGS THE MOST PROFITABLE PLACE TO BUILD MALAYSIA 31% INCOME OF THE INVESTED MONEY Due to

33. THE PERCENTAGE OF EMPTY HOUSES IS INCREASING THIS COULD PRODUCE: LOWER HOUSING DEMAND LOWER HOUSING PRICES LOWER PROFIT INCOMES

35. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

36. Investing in US Investing in Malaysia The demand of houses maintains Less risk The price of dwellings does not recoverLess profit Very high benefitsHigh profit Housing demand decrease High risk

37. 1. Introduction and Background 2. Aim, objectives and scope 3. Literature review 4. Methodology 5. Data collection and analysis 6. Discussion of results 7. Conclusions 8. Citations and referencing

38. INTERNATIONAL CONSTRUCTION COST SURVEY by GARDINER & THEOBALD www.gardiner.com/ INTERNATIONAL CONSTRUCTION COST SURVEY by TURNER & TOWNSEND www.turnerandtownsend.com/ I could get information about the construction costs in differents country from studies already done like:

39. www.bls.gov United states departament of labour www.tradingeconomics.com Economic analysis enterprise www.epu.gov.my Malaysian government www.governing.com Business news www.census.gov Stadistic office united states www.payscale.com Information about labour cost www.turnerandtownsend.com Information about international costs www.tradingeconomics.com Basic macro-economic data

40. Javier Mustieles 26 th June