Assessing Real Estate Project Success Using an Analytic Network Process

Abstract

Various measures exist to assess the success of real estate projects. The major objective of this study is to propose a comprehensive success model for real estate projects considering both short-term and long-term performance. In this respect, a wide range of success criteria are identified based on an extensive literature survey, and these criteria are classified according to the balanced scorecard (BSC) framework. Then, an analytic network process (ANP) model is developed to examine the links between the attributes of success and to compute the importance weights of these variables on the real estate project success. Data used for the ANP model are collected from eight experienced civil engineers. The findings of this study suggest the importance of the attractiveness of project location, level of contribution to business value, accuracy of cost estimation, level of innovativeness, and effectiveness of cost control for a successful real estate project. The applicability of the proposed model is tested on nine projects, and the results are found to be satisfactory. Real estate companies may benefit from the findings of the proposed model in assessing the performance of their projects and may take the necessary actions to achieve better success in their projects.