Assessing real estate project success using the analytic network process

Abstract

There are various indicators to measure the success of real estate projects. Despite the number of studies focusing on construction project success, there has not yet been a consensus on how to assess the success of real estate projects. Within this study, criteria associated with the real estate project success are identified based on an extensive literature survey and these criteria are classified adopting the Balanced Scorecard (BSC) framework. Then, an analytic network process (ANP) model is developed to examine the links between the attributes of success and compute the importance weights of these variables on the real estate project success. Findings of this study suggest the importance of the attractiveness of project location, level of contribution to business value, and accuracy of cost estimation for successful real estate development. The applicability of the proposed model is tested on ten projects and the results are found to be satisfactory. Real estate companies may benefit from the findings of the proposed model to assess their projects and take necessary actions to have successful projects.