Urban Due Diligence: legal and technical guarantee for land and real estate transactions

The Urban Due Diligence for companies and investors is a specialised analysis that assesses in detail the legal, planning and regulatory status of land and property prior to a sale, investment, financing or development transaction. This study identifies planning risks, encumbrances, use limitations and regulatory requirements, providing key information to accurately value assets and ensure safe and profitable decisions.

We are a leading company with more than 30 years of experience in advising companies in the areas of Consultancy and Valuation. To have the backing of an independent consultancy firm such as Gesvalt, for Urban Due Diligence provides rigour, objectivity and confidence in strategic decision making.

What is an Urban Due Diligence and what is it for?

Comprehensive assessment of the legal and urbanistic situation of a property or land

A Urban Due Diligence is a detailed report which analyses the current situation of a real estate asset or land, including its location, ownership, technical and regulatory compliance, administrative and urban planning situation, prior to entering into a contract.

Typical cases: purchase and sale, financing, change of use, urban developments

It is commonly applied in transactions such as sale and purchase, financing, change of use or developments. It acts as a key tool to assess the risk and viability of the project.

Prevention of legal, technical and administrative risks

Its aim is to identify possible contingencies,the Commission shall, in its opinion, take into account the legal, town planning, technical or regulatory adaptation, and shall estimate the additional costs necessary, thus providing a sound basis for informed decision-making and risk mitigation.

What aspects does Gesvalt analyse in an Urban Due Diligence?

Urban land classification and qualification

We assess the degree to which the land is in line with current planning and its potential for further development or change of use.

Applicable planning: PGOU, Partial Plans, Subsidiary Standards

The administrative and town planning situation of the asset is reviewed, analysing the applicable regulatory framework.

Licensing status, urban planning charges and regulatory compliance

Verification of ownership and occupancy, regulatory compliance of the use, as well as possible charges, obligations or licences that may affect the property is carried out.

Analysis of buildability, permitted uses and alignments

We study the degree of technical and regulatory compliance (including construction aspects such as dimensions, systems and installations), which gives a glimpse of the real buildability and authorised uses.

Impact assessment (roads, coastline, heritage, etc.)

Finally, we identify town planning, legal or technical contingencies that may influence the viability of the asset.

Gesvalt's services for Urban Due Diligence

Technical and legal documentary review

We verify the ownership, legal charges, town planning and administrative status of the property, as well as its technical and regulatory compliance with the intended use.

On-site verification and consultations with administrations

The analysis includes detailed on-site inspections and, although not always explicitly stated, usually involves consultations with the competent administrations to confirm the real situation of the asset.

Executive report with identified risks and urban viability

Prepares a technical report that includes identification of contingencies, risk assessment and estimation of the costs (CAPEX) required to adapt or adapt the asset.

Accompaniment in investment or development decisions

With our services, we help our clients (investors, individuals, funds, family offices) to make safe decisions on investments or developments, providing clear and precise analyses on feasibility and risks.

When is it advisable to carry out an Urban Due Diligence?

Before acquiring land or property for development

To know the legal, urbanistic and technical situation before committing the investment.

In asset-backed financing processes

To assure the financial institution that the asset is viable and free of relevant contingencies.

In change of use or rehabilitation of assets

To confirm that the project complies with regulations and will not face administrative hurdles.

As support for mergers, acquisitions or distressed portfolios

To assess risks, burdens and potential of assets involved in complex operations.

Frequently Asked Questions on Urban Due Diligence

Is urban due diligence the same as technical due diligence?

No, La Urban Due Diligence analyses the legal and regulatory situation of the land or property, while the technique assesses its constructive state and physical conditions.

Can it be done on rural or only urban land?

It can be done in urban, urbanisable or rural landadapting the analysis to the regulations and characteristics of each typology.

What happens if you detect an urban planning infringement?

It is included in the RISK REPORT with its legal scope and possible solutions, so that the client can make a fully informed decision.

How long does a full Due Diligence take?

The timeframe varies according to the complexity, but is usually completed in 2 to 4 weeksincluding documentary review and on-site verifications.