Asianoah, R; Ayitey, A F and Brink, B (2025) Assessing financial and professional risks on commercial property development and investment in the Accra, Ghana enclave. Construction Economics and Building, 25(2), pp. 215-234. ISSN 2204-9029
Abstract
Commercial property development and investment (CPDI) is considered to be one of the major investments that stimulate economic growth in many countries around the globe. Ghana is no exception. CPDI benefits include employment creation, tax revenue to the government, generation of income for investors, and gross domestic product (GDP) contribution. However, CPDI suffers from inherent risks in its planning, execution, and management stages. Some of the inherent risks can be identified and assessed prior to execution if effective financial and professional analyses are conducted. Hence, the purpose of this study was to critically evaluate financial and professional risks affecting CPDI projects in Accra, Ghana. Based on this, an extensive literature review was conducted on key variables such as PESTEL (Political, Economic, Social, Technology, Environment, and Legal), strategic factors, Project Management Body of Knowledge (PMBOK), and financial and professional feasibility. The proposition is that these variables have a significant effect on CPDI projects. Quantitative approach was employed to collect field data from property practitioners within the Accra enclave as respondents whereby a survey of questionnaires was distributed using the probability random sampling technique. Structural equation modeling was used to analyze the data gathered from the 172 respondents out of the 500-target population. This means that a 76% response rate was achieved per the total number of 225 distributed questionnaires. Analysis of the data proved that PESTEL analysis, strategic factors, and PMBOK statistically have a significant effect on CPDI projects' risk assessment. The findings of the study indicate that financial and professional feasibility analysis serves as the primary basis for assessing risks in CPDI projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | commercial property development; investment; risk management |
| Index terms: | structural equation modelling, literature review, survey, revenue, population, commercial property, questionnaire, practitioner, Accra, body of knowledge, investor, gross domestic product, employment, Ghana, risk assessment, income, risk management, sampling, economic growth, project management |
| Subjects: | economic development, financial risk, Geography, demography, construction type, practitioner, economic analysis, knowledge management, management, project management theory and practice, sociology, statistical analysis, data collection methods, risk assessment, data analysis and analytics |
| Topics: | Human Resources, Urban Studies, Information Management, Research Practice, Business Strategy, Cost Management, Construction Technology, Stakeholder Management, Roles and Professions, Project Management, Geographical Context, Sustainability, Risk Management |
| Descriptive scope: | 4 PCEA |
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