Otegbulu, A C; Osagie, J U and Famuyiwa, F (2009) A value hierarchy study of building services/components in commercial and residential developments: A comparative analysis. In: Dainty, A R J (ed.) Proceedings of 25th Annual ARCOM Conference, 7-9 September 2009, Nottingham, UK.
Abstract
The success of any real estate investment is a function of in-depth pre-investment planning based on socio-economic and environmental considerations. The value of both commercial and residential development depends on the quantum of utility they can provide to the end users. This value is also a composite of different attributes of the respective developments, some internal and others external. This therefore calls for a need to evaluate their cost-value implications and identify user preferences in a hierarchal manner. This is an aspect neglected by most real estate developers as they fail to recognise the need for market research. Consideration of user preferences in development projects will be very useful in planning and budgeting, as emphasis will be on those building components and services that are more cost effective. Budget constraint encourages rationalisation in project planning. Using data of 150 from residential and 100 commercial tenants in areas of Lagos, Nigeria, achieving higher value-cost relationship using value hierarchy analysis was investigated. Analysis conducted using descriptive statistics and relative index revealed a hierarchy of values for different components/services and confirmed that occupiers do have prioritised preferences with respect to different building components/services in both residential and commercial developments. The study also revealed variations in preferences in both types of development.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | building services; cost effectiveness; commercial development; residential development; value-hierarchy; and willingness-to-pay |
| Index terms: | user preference, budget constraint, Nigeria, statistics, building service, preference, project planning, comparative analysis, cost-effectivenes, building component, residential development, budgeting, end user, real estate investment, composite, real estate, tenant, commercial development, Lagos, market research, variation |
| Subjects: | stakeholder, contractual condition, architectural elements, engineering systems, market analysis, financial management, data analysis and analytics, decision-making and reasoning, construction type, practitioner, economic analysis, Geography, economic development, economics, mathematical modelling, control systems, financial and cost management, client relations, real estate economics, materials science |
| Topics: | Cost Management, Geographical Context, Business Strategy, Roles and Professions, Contract Administration, Design Practice, Project Management, Construction Materials, Research Practice, Construction Technology, Urban Studies, Stakeholder Management, Procurement, Engineering Principles |
| Descriptive scope: | 3 PCA |
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