Respondents’ perception of Risk Factors on Residential Property Development in Abuja, Nigeria
Significant risk factors such as social, technological, economic, environmental and political in the timing development, minimization of cost and expected return as they influence the successful delivery process of residential property development were investigated in this study towards enhancing real estate development decisions. This is expedient because it has been argued that the link between project success criterions determines a successful project delivery. Data were obtained from members of Real Estate Developers Association (REDAN) in Abuja through the use of a self-administered questionnaire. The respondents were asked to rate the influence of risk factors on residential property development parameters, and the data were computed using logistic regression analysis. The study revealed that real estate developers were more concerned with the influence of economic and technological risk than other sources of risk. Also, the statistical effects were computed through logistic regression analysis. It was explained by significant value (p<0.05) which depicts the likelihood of the risk factor which could either be positive or negative, as explained by beta (β). The findings revealed the effect of economic risk factors in timing development to be (β=1.833, p<0.05). Also, the effect of technological risk factors to influence development cost were found to be (β=--.187, p<0.05) while the effect of economic risk factors on return was found to be (β=1.026, p<0.05). The main contribution of the study to the body of knowledge is developing a risk factors assessment technique for practitioners and academia to assess the residential property development performance as related to timely completion, cost and returns to enhance the need to develop competence in managing and minimizing the effect of risk factors on the residential investment appraisal.
Keywords: Development appraisal, Expected return, Profit maximization, Residential property, Risk analysis, Time.
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