Assessing the Effect of Feasibility studies on Real Estate Development in Ghana

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Date
2021-06-10
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Abstract
Real Estate is presently one of the fastest growing sectors in the Ghanaian economy. This growth has informed and attracted investors, both foreign and local, to channel much resources there in an effort to benefit from the available opportunities. Consequently, large-scale commercial properties have sprung up recently. However, not all these properties are performing as expected and this brings to the question: Are these properties products of instincts or the result of a feasibility study. The main aim of the study is to assess the effects of feasibility studies on Real Estate development in Ghana. In achieving this aim, the following objectives were set: to explore the feasibility study attributes that are considered for Real Estate Development, to find out whether Real Estate developers conduct feasibility study before development and to identify the effect of feasibility study on Real Estate developments. Questionnaires were sent out to developers who were selected through the purposive sampling approach. Seventy [70] questionnaire were administered out of which Sixty-Six [66] responded. The analysis of the study was done using mean score ranking, relative importance index and one sample t test. The study revealed that patronage of feasibility study is low and discouraging. This is mainly due to the associated high cost of conducting a feasibility study. The respondents provided information on the most suitable professional to handle feasibility studies and they rankled highest or most suitable to be the project manager and the valuer. The results also revealed that there are very important and positive effects from conducting these feasibility studies very well. It was then concluded that, A good feasibility study is expensive and takes time but it is a necessity as it boosts the performance of properties and reduces the risks associated with a project among other benefits. It is recommended that a good feasibility study should be carried out before the construction of any large scale commercial Real Estate.
Description
A thesis submitted to the Department of Construction Technology and Management College of Architecture and Built Environment, in partial fulfilment of the requirement for the Degree of Master of Science
Keywords
Feasibility, Studies, Real Estate, Development.
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