scholarly journals International Real Estate Review

2011 ◽  
Vol 14 (3) ◽  
pp. 283-310
Author(s):  
Nico Rottke ◽  
◽  
Dirk Schiereck ◽  
Stephan Pauser ◽  
◽  
...  

Since the late 1990s, the construction industry has undergone a change in business model, as contractors vertically expand their operations to other parts of the real estate life cycle. The question arises on whether construction companies have superior abilities as real estate service providers. We have examined the value implications of 106 large merger and acquisition (M&A) transactions in the construction industry worldwide from 1986 to 2006. We inquire if a vertical expansion of the construction value chain in the real estate life cycle through M&A leads to the creation of shareholder value. We find out that this is not the case. M&A success is mainly determined by industry-specific size effects and common agency conflicts.

2020 ◽  
Vol 90 (7) ◽  
pp. 975-1019 ◽  
Author(s):  
Andreas Pfnür ◽  
Benjamin Wagner

Abstract The German real estate and construction industry is facing a transformation, triggered by fundamental changes in technology, the economy and society. The purpose of this paper is to explore how these changes exert pressure to adapt on existing business models, while also offering opportunities for their further development. A model that attributes the transformation of the real estate industry to megatrends, specific structural change drivers, business models and the interaction of the groups of players in the value creation system is developed. The model is tested empirically by a survey. Structural equation modelling is used to measure the impact of various determinants of transformation and the relevance of adaptation strategies to the different groups of players. As a result, the study explains three impact mechanisms of the transformation in the real estate industry. The transformation originates from the occupiers, who need more flexible space and are focusing on holistic solutions that are not provided by the real estate industry. Service providers are striving to increase the efficiency of their traditional processes, rather than evolving new business models or services. The investors recognise the increasing importance of the occupiers but they are rarely pursuing the resulting strategies. Property developers recognise these requirements: their adaptation strategies most strongly question their previous business. For practitioners, the results point out the opportunities and risks of transformation and help to illustrate the need for change. For academicians, the results indicate a way to explain and measure the transformation of a value creation system.


2021 ◽  
Vol 41 (I) ◽  
pp. 74-85
Author(s):  
P. HRYHOROVSKYI ◽  
◽  
N. CHUKANOVA ◽  
YU. KROSHKA ◽  
I. OSADCHA ◽  
...  

Aim of this work – to set forth general principles of ground of efficiency of informatively-measuring technologies in the process of exploitation of objects of the real estate. Methodology. The method of substantiating the effectiveness of the restoration of the technical condition of real estate in the process of their operation is based on the use of information and measurement technologies to establish the technical condition of the object, which is a combination of information retrieval methods, instrumental measurement, analysis and processing of such information, technological and technical solutions to ensure the operational suitability of the facility in conditions of uncertainty. The method involves the formation of a repair strategy using information and measurement technologies based on the development of the life cycle of repairs and algorithms for selecting options for instrumental monitoring systems, choosing the procedure for studying the duration of measurement work, justification of labor and information technology costs and comparative assessment of total costs of real estate object. Results. It is established that measuring works are an integral part of the process of operation and repair work in its composition, which are carried out according to a single schedule of operation of the building and are part of repair work, and the frequency and volume of measuring, including geodetic work correlate with. To plan the volume of measuring work, their duration and labor costs are determined on the basis of existing time norms, and in their absence – by methods of technical rationing. Substantiation of the effectiveness of information and measurement technologies in the operation of real estate is performed by comparative assessment of total costs during the operational stage of its life cycle, taking into account the costs of implementing information and measurement technologies, that is the set of processes for obtaining information by instrumental measurement and processing ‘effective conclusion on the technical condition of the property. The scientific novelty of the obtained results is in the development of general principles for substantiating the effectiveness of information and measurement technologies in the operation of real estate. The practical significance lies in the improvement of standard solutions for the choice of composition and content of information and measurement technologies, taking into account their impact on the duration and labor costs of all types of repairs and reconstruction.


2014 ◽  
Vol 32 (1) ◽  
pp. 28-47 ◽  
Author(s):  
Tuuli Jylhä ◽  
Seppo Junnila

Purpose – Although great emphasis has been given to the added value of real estate, the current studies miss the phase when the actual value is created, i.e., the production phase of real-estate services. Therefore, the purpose of this paper is to evaluate the current state of value creation of the commercial real-estate services from a lean thinking perspective. Design/methodology/approach – Value creation is studied in four Finnish cases through 122 interviews and eight workshops. Findings – Cross-case analysis identified six sources of waste resulting as poor value creation: sub-process optimisation instead of optimising the entire process, the price minimisation instead of cost minimisation, difficulties responding to customer value, overloaded employees, inability to make improvements, and poorly managed information. Research limitations/implications – Although the findings are grounded on a solid data collection and analysis, the case study nature of the research and the Finnish case study settings create limitations for the generalisation of the findings. Practical implications – Service providers and other process owners can use the findings to improve their value creation and increase the productivity of their service processes. Originality/value – This is one of the first research studies that utilise lean thinking in commercial service processes in the real-estate sector and thus provides new insight into how to increase productivity through waste minimisation.


2017 ◽  
Vol 8 (2) ◽  
pp. 932-936
Author(s):  
Alok Singh

The real estate project development is an important constituent of construction industry. The other important constituent of construction industry is infrastructure development. The construction industry drives and impacts many other industries and has a substantial multiplier effect on various sectors and hence on economic output as well as on employment scenarios. This article discusses multiplier effect of construction industry on few of the  important economic indicators and further focuses on real estate project development process. The real estate project development process starts from land acquisition to sales and marketing. The internal stakeholders in real estate project development process are real estate developers, real estate buyers and the real estate financers. The paper discusses alternatives for real estate developers, the opportunistic schemes for real estate buyers, and the role of portfolio of financing agencies as well as the role of multitudes of equity participants. It also describes about the regulatory institutions active in real estate project development and promotion process. The real estate projects are developed by organized real estate project developer as well as by unorganized real estate project developers or local builders. This article contributes regarding the challenges and opportunities among the real estate buyers, real estate developers, portfolio of financial schemes offered by real estate financers and the opportunities for real estate equity participants.


2012 ◽  
Vol 16 (4) ◽  
pp. 392-413 ◽  
Author(s):  
Wai Peng Wong ◽  
Hassan Fereidouni Gholipour ◽  
Ebrahim Bazrafshan

This paper empirically explores various efficiency aspects of real estate and construction companies in Iran in light of their remarkable growth in recent years. The technique used to measure the efficiency is DEA and the sample is taken from the construction and real estate companies in Iran. Results from our analysis reveal that most of the real estate and construction companies in Iran are generally technical, scale and mix efficient. However, they are less cost efficient due to increasing higher cost of production. The sensitivity analysis results also suggest that the real estate and construction companies are experiencing diseconomies of scale. As Iran is an underdeveloped market and is currently one of the most interesting frontier markets in the world, this research contributes substantially to investors and multinationals (who have growing desire to gain exposure in this market) by providing current information about the efficiencies of real estate and construction companies in Iran. In addition, this research also provides some institutional voids on how to penetrate market environment in Iran through real estate development.


2014 ◽  
Vol 644-650 ◽  
pp. 5999-6002
Author(s):  
Heng Sheng Ma ◽  
Feng Gao

Firstly,summarizes and analyzes the theory of the life cycle,and then inductive research the current real estate project quality management status.Secondly,divide the phases of the life cycle quality in the real estate project were set off.Thirdly,stand in developer's perspective,systemically analyzes the main content of LCP in the real estate project,the key points and the methods of the quality control.


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