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Evaluating Critical Factors Impacting Real Estate Development Decisions

Author

Listed:
  • Pandya Jigar V

    (Department of Civil Engineering, School of Technology, Pandit Deendayal Petroleum University, Gandhinagar, India)

  • Patel Vikram M.

    (Adani Institute of Infrastructure Engineering and Management, Gujarat Technological University, Ahmedabad, India)

Abstract

We find that critical factors affecting real estate project decisions can vary while market changes in the city of Ahmedabad have led to the majority of landmark buildings facing obsolesce, redevelopment and spatial redundancy. Case studies can assist in data collection in the cultural context and accommodate indirect observations of the variables analyzed in the early stages of research (Teegavarapu & Summers, 2008; Rowley, 2002). Decisions have led to capital losses for some, while bringing about profitable opportunities for developers who take timely risks.We also find that the land pooling technique used by the State in city development has successfully promoted land banking for public purpose but has also contributed to speculative land price appreciation. AHP rankings show that the surveyed practicing developers prioritized location factors such as neighborhood character and availability of land above land use zones and land auctions. Among project factors, FAR (Floor Area Ratio), abutting road width and road frontage of the land ranked higher compared to building design. In the professional practice category, the availability of finance, the timing of project announcement and past project experience of the developers ranked higher compared to brand value and speculation.

Suggested Citation

  • Pandya Jigar V & Patel Vikram M., 2020. "Evaluating Critical Factors Impacting Real Estate Development Decisions," Real Estate Management and Valuation, Sciendo, vol. 28(1), pages 112-126, March.
    • Handle: RePEc:vrs:remava:v:28:y:2020:i:1:p:112-126:n:10
    DOI: 10.1515/remav-2020-0010
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    References listed on IDEAS

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    More about this item

    Keywords

    project decisions; critical factors; developers; case studies; AHP method;
    All these keywords.

    JEL classification:

    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • E39 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Other
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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