Harnessing Real Estate Investment through Decision Process for Selecting Tenants in Nigeria

One of daunting challenges to harnessing real estate investment in Nigeria is selection of tenants. Many prospective tenants of completed development projects often appear good at the recruitment stage but later become belligerent with grave consequence and challenge to the Estate Surveyors. This paper examines the criteria set by practitioners in selecting tenants in Lagos Nigeria. A survey of Estate Surveyors and was carried out to obtain the criteria and relative importance index analysis carried to determine their rankings. The outcome showed the decision process to assist estate surveyors in recruiting reliable tenants such that investors in real estate will harness adequate and remunerative returns and have value for their investment

A Vision for ARES in the Twenty-First Century: The Virtual Community of Real Estate Thought Leaders

In the twenty-first century the American Real Estate Society (ARES) is a virtual community of real estate thought leaders, electronically interconnected and linked through the International Real Estate Society to counterpart organizations on all major continents as well as numerous country-specific societies. ARES growth is attributable to its emphasis on rigorous applied microeconomic decisionmaking and an inclusive, open style. The initiatives of the Strategic Planning Task Force, whose report was enthusiastically endorsed and implemented at the 1996 Lake Tahoe meetings, have led to an expansion of activities and services. Further, the "Great Water" location strategy continues to attract strong meeting participation, which meetings emphasize special tracks for the corporate space user, global portfolio investing, micro property strategies and transactions, property analytic advances, improving cognitive skills to overcome bounded rationality, and learning innovations as well as ethical and aesthetic issues, property rights and quality of life topics. As valuable as the electronic access to critical real estate research resources is, the ARES Annual Meeting continues to be the one must attend gathering for real estate thought leaders throughout the world.

An Approach to Prioritizing the Commercial Real Estate Development Risk

After 30 years of war in Sri Lanka, the demand for real estate has increased tremendously across the nation. Similarly, numerous real estate sub-sectors have avidly participated in the worldwide boom. However, with failures and poor functioning of many investment projects, the industry's risk management reputation has been put in jeopardy, followed by the coronavirus (COVID-19). Though it is less popular among Sri Lankan property developers, risk management strategies in development projects have become a pressing requirement. This paper's goal is to look at commercial property development risk elements from the perspective of a real estate developer in relation to Social, Economic, Environmental, Technological, Political, and Pandemic Risks. The research first evaluates risk variables using a super decision software model based on the Analytic Hierarchy Process (AHP), then prioritizes the most important risk factors, and lastly examines effective risk management measures for successful real estate developments. The data collection has been carried out using interviews through telephone conversations with the help of a structured questionnaire. Accordingly, 35 risk factors have been assessed altogether. For the three projects, the synthesized values were 1.0000, 0.510763, and 0.604037, respectively. Based on the analysis of superMatrix calculation, project A is regarded as the best alternative project in such circumstances. Pandemic Risk, Economic Risk, and Political Risk have all had a significant impact on the primary risk criteria. Therefore, COVID-19 Pandemic Risk Emergence, Workforce Availability, Duration, Delays in Council Approval/License Approval Process and Natural Disaster Impact were identified as the highest influenced sub-risk factors. Identifying the risk factors on this avenue will also help in making better investment decisions while increasing the unpredictable nature of the real estate field and future satisfaction of loan team investment goals within the country

An Approach to Prioritizing the Commercial Real Estate Development Risk

After 30 years of war in Sri Lanka, the demand for real estate has increased tremendously across the nation. Similarly, numerous real estate sub-sectors have avidly participated in the worldwide boom. However, with failures and poor functioning of many investment projects, the industry's risk management reputation has been put in jeopardy, followed by the coronavirus (COVID-19). Though it is less popular among Sri Lankan property developers, risk management strategies in development projects have become a pressing requirement. This paper's goal is to look at commercial property development risk elements from the perspective of a real estate developer in relation to Social, Economic, Environmental, Technological, Political, and Pandemic Risks. The research first evaluates risk variables using a super decision software model based on the Analytic Hierarchy Process (AHP), then prioritizes the most important risk factors, and lastly examines effective risk management measures for successful real estate developments. The data collection has been carried out using interviews through telephone conversations with the help of a structured questionnaire. Accordingly, 35 risk factors have been assessed altogether. For the three projects, the synthesized values were 1.0000, 0.510763, and 0.604037, respectively. Based on the analysis of superMatrix calculation, project A is regarded as the best alternative project in such circumstances. Pandemic Risk, Economic Risk, and Political Risk have all had a significant impact on the primary risk criteria. Therefore, COVID-19 Pandemic Risk Emergence, Workforce Availability, Duration, Delays in Council Approval/License Approval Process and Natural Disaster Impact were identified as the highest influenced sub-risk factors. Identifying the risk factors on this avenue will also help in making better investment decisions while increasing the unpredictable nature of the real estate field and future satisfaction of loan team investment goals within the country

The Assessment of Real Estate Initiatives to Be Included in the Socially-Responsible Funds

The acknowledgment of the ongoing economic and financial crisis involving real estate, creates the need to formulate proposals and scenarios (in real estate) with the characteristics of socially responsible investments. These kind of investments aim towards “sustainable” development both environmentally (safeguarding the shortage of resources such as land, energy, and natural elements), and socially (protecting the population and raising its level of well-being) according to so-called “ethical finance”, instead of a mere “speculative” investment. Effectively, real estate is still an investment sector only marginally explored by the socially-responsible funds. Based on these premises, this paper will: (i) briefly analyze the nature of socially-responsible investments, setting their characteristics apart from “traditional investments”; and (ii) propose a possible procedure (of the multi-criteria type) which aims to assess socially-responsible investments in real estate. This will be applied to a case study regarding a social housing initiative in the municipality of Anguillara Sabazia (Rome, Italy)

RISK ASSESSMENT TECHNIQUES IN REAL ESTATE INVESTMENT: A CONCEPTUAL REVIEW

The intrinsic existence of risk in Real Estate investment and often being less quantifiable, encourages to identify, and measure the associated risk to satisfy the expectations of an investment. Hence, choosing an appropriate technique is paramount. Many techniques have been applied in assessing the risk, yet no review has done. This paper aims to present a critical review of the risk assessment models and techniques, already applied. Details of 18 techniques, 12 other possible and applicable techniques and 02 models were used as data and reviewed chronologically. Results revealed that majority are qualitative and varied as per the different scenarios, thus applying a combination is recommended.&nbsp

Personalized Multidimensional Process Framework For Dynamic Risk Analysis In The Real Estate Industry

The risk analysis for real estate property investment is subject to high risk. It is qualitatively and quantitatively assessed by various techniques such as the analytical hierarchy process (AHP) and the analytic network process (ANP) which determine the risk factors based on expert survey, weight and rank the factors using algorithm and mathematical formula and decide the best investment based on performance index of the alternatives given. However, experts from the field have different opinions and judgments about the environment of the real estate industry and this scenario will affect the result of the risk factor weight and ranking. Moreover, different investors have different goals and objectives to be achieve. Thus, this paper will propose a new personalized multidimensional process (PMP) framework based on knowledge discovery. This framework comprises of two new methods namely the personalized association mapping (PAM) method and the personalized multidimensional sensitivity analysis (PM-SA) method. The innovations of this research are the justification of risk factor weight and ranking. It will be based on deterministic approach using historical data driven to decision support using knowledge discovery in database and the heuristic approach which is refers to investors personalization of the risk factors which fulfil their requirements

Assessing Real Estate Investment Alternatives:A multi-criteria and multi-stakeholder decision aid tool

Investment decisions in private real-estate demand the consideration of several qualitative and quantitative criteria, as well as the different or even conflicting interests of the participating stakeholders. Meanwhile, certain indicators are subject to severe uncertainty, which will eventually alter the expected outcome of the investment decision. Even though multi-criteria decision making (MCDM) techniques have been extensively used in real-estate investment appraisals, there is limited evidence from the private rented sector, which constitutes a large part of the existing real estate assets. The existing approaches are not designed to capture the inherent variability of the decision environment, and they do not always achieve a consensus among the participating actors. In this work, through a rigorous literature review, we were able to identify a comprehensive list of assessment criteria, which were further validated through an iterative Delphi-based consensus-making process. The selected criteria were then used to construct an Analytical Hierarchy Process (AHP) model evaluating four real world, real estate investment alternatives from the UK private rented market. The volatility of the financial performance indicators was grasped through several Monte Carlo simulation runs. We tested the described solution approach with preference data obtained by seven senior real estate decision-makers. Our computational results suggest that financial performance is the main group of selection criteria. However, the sensitivity of the outcome indicates that location and property characteristics may greatly affect real estate investment decisions

MULTI-CRITERIA ANALYSIS AS A TOOL FOR MUNICIPAL PROPERTY MANAGEMENT

In most decision making situations more than one criterion is involved and, as a consequence, confusion can arise if there is no logical and well structured decision-making process in place. The multi-criteria analysis (MCA) constitutes a tool that can help evaluate the relative importance of all criteria involved and reflect on their importance during project management and decision making. MCA is a management tool aiming at supporting decision makers faced with making numerous and conflicting evaluations by deriving a way to come to a compromise. This paper discusses the possibilities of applying MCA in the field of municipal property management, where the decision-makers have to find the most convenient destinations of municipal assets that can be used for various purposes such as: governmental, business, social use. In each case specific criteria and indicators are employed in the ranking and rating process, so as to get the corresponding weighted score. An application is also presented, as performed within a work package included in the project “Municipal Property Management in South- Eastern Cities (PROMISE)â€, aiming to develop a comprehensive system for municipal property classification for governmental use, social use and business use by means of criteria previously defined, processed by MCA operation. The resulted system is adapted to the strategic goals of the administrative authorities, contributing to an effective municipal property management by optimising and standardising the decision-making procedures. The framework created enables the municipalities to find an appealing combination between the use of properties for their own needs and for attracting investment and promoting sustainable development of their cities and regions. The project was initiated in 2009, being funded by the ERDF within the South-East Territorial Co-operation Programme. Keywords: multi-criteria analysis, criteria, indicators, ranking, municipal assets, strategic management