Nnamani, O. C. and Ogbue, J. U. (2026) Assessing risk analysis and management practices of property development companies in Nigeria. Construction Economics and Building, 26(2): 380, ISSN 2204-9029
Abstract
Risk is inherent in property development, yet its management remains a challenge in many emerging economies. This study is aimed at assessing the risk management practices of real estate development companies in Nigeria, providing a comprehensive understanding of how risks are analysed and managed across the country's six geopolitical zones. This study employed an explanatory sequential mixed-methods design to investigate the risk management practices of real estate development companies in the six geopolitical zones of Nigeria. While 250 questionnaires were sent to development firms registered with the Real Estate Developers Association of Nigeria, personal interviews were conducted with 13 purposively selected developers. Quantitative data were analysed using descriptive statistics, while qualitative data were analysed using a thematic approach. Out of the 250 questionnaires distributed, 84 were correctly filled out and returned, giving a response rate of 33.6%. Descriptive statistics results showed that out of 31 risk management techniques, brainstorming, checklists, experience/ judgement/intuition, risk avoidance, and interviews were the most commonly used techniques adopted by real estate developers in risk management for development projects. Additionally, over half of the development firms have well-formulated strategies for risk management; however, this does not translate into practice. The qualitative findings validated most of the quantitative results. This study inferred that combining qualitative with quantitative methods, especially probabilistic approaches, will create a comprehensive and more balanced risk management approach in real estate development projects. The findings of this study would assist both local and international developers in making informed decisions regarding real estate development investment in Nigeria and other countries that share similar characteristics with Nigeria.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | mixed-methods; Nigeria; real estate development; risk analysis; risk management |
| Index terms: | property development, management practice, real estate, statistics, risk management, strategy, questionnaire, intuition, Nigeria, quantitative method, emerging economy, interview, risk analysis, real estate development |
| Subjects: | cognitive psychology, management, economic development, mathematical modelling, real estate economics, Geography, environmental hazards, data analysis and analytics, risk assessment, data collection methods |
| Topics: | Business Strategy, Geographical Context, Urban Studies, Sustainability, International Construction, Research Practice, Risk Management |
| Descriptive scope: | 5 PCTEA |
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