Risk assessment in real estate development: an application of analytic network process

Sukulpat Khumpaisal, Zhen Chen

Research output: Contribution to journalArticle

Abstract

A novel analysis approach to support real estate developers in making decision to deal with potential risks in each project development stage is introduced in this paper. The analysis model applied in this research is a multi-criteria approach, based on Analytic Network Process (ANP) theory. Risk assessment criteria to accomplish the ANP calculation are defined based on both literature review and related experience, against Social, Technological, Economic, Environmental and Political (STEEP) requirements of the real estate development in order to assess the risks in this business effectively. A case study of a residential and commercial mixed-use project in Liverpool City Centre was used to demonstrate the effectiveness of the ANP model. The result of an initial case study revealed that ANP is an effective tool to support developers in making decision based on risks assessment. It was found through this study that the established ANP model is effective and can be adopted by real estate developers to suit for the business needs.
Original languageMultiple languages
Pages (from-to)103-116
Number of pages14
JournalJournal of Architecture/Planning Research and Studies
Volume7
Issue number1
Publication statusPublished - Sep 2010

Keywords

  • risk assessment
  • sustainable construction
  • real estate
  • analytic network process (ANP)
  • STEEP factors

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