A risk management model for commercial property development and investment in Ghana

Abstract

Commercial property development and investment provide many benefits to individuals and governments around the globe; these include the generation of income for investors, employment, tax revenues, and contributions to a country‘s GDP. Yet commercial property development and investment projects involve construction, economic and management risks. A lack of effective risk assessment and management tools may lead to developers and investors incurring losses. To curtail such losses, this study sought to create a credible management model that can be used to assess and manage risks in Ghana‘s commercial property development and investment industry. An extensive literature review was done, covering all 12 identified study constructs: real estate trends and cycle, construction project management, outside advice/mentorship, spatial development, strategic factors, business management skills, PMBOK, PESTEL analysis, general management skills, governance structures, financial feasibility, professional feasibility, and risk management. Each construct was defined and operationalised. A positivistic philosophical approach was used, and quantitative approach was used to solicit data from the main respondents through the distribution of questionnaires to the target population sample. CB-SEM and SPSS version 24 were used to analyse data, SEM to test the positive relationships hypothesised between the identified variables and SPSS to analyse the demographic data. The major findings are that there is a lack of financial and professional feasibility analysis among respondents along the following factors: the PMBOK, real estate trends and cycles, general management, business management, strategic factors, spatial development, and PESTEL analysis. It was found that these factors have positive and favourable influences on CPDI projects. The study recommends that developers and investors do financial and professional feasibility studies before they embark on projects. This could improve project viability in commercial property development and investment. The study has contributed to the body of knowledge in CPDI sector by developing a new risk assessment/risk management model.Thesis (PhD) -- Faculty of Engineering Built Environment and Technology, School of the built Environment, 202