AN ASSESSMENT OF THE CRITICAL SUCCESS FACTORS FOR REAL ESTATE PROJECTS: IN THE CASE OF SELECTED COMPANIES IN ADDIS ABABA

Abstract

Rapid growth in Real Estate industry in Ethiopia is developing using resources to conduct a number of construction projects. Many Real Estate companies (Project Sponsors) only consider the financial aspects of the real estate development projects while many internal and external factors affect their success. This research aims to contribute to the effectiveness and efficiency of these companies in delivering real estate development projects. The objective of the study is to identify and assess critical success factors in real estate development projects as well as establish the relationship between critical success factors and project success. A quantitative approach was applied where conceptual model was adopted to assess eight main critical success factors: Client Objectives, Client Core Competencies, Project Environment (Physical Environment, Economic Environment, Socio-Political Environment and Industrial Relations), Project Team Leaders Performance &Project Management Actions. A total of 91 questionnaires were filled by project managers, engineers and Forman’s engaged in real estate development projects by six real estate’s: New Hope, Afrovil, Sirdenji, Sicamas, MSN and Kazadis. Descriptive statistics and correlation were applied using SPSS to analyze and interpret data. The major findings indicate that Client Objectives, client core competencies, Physical Environment, Economic environment Socio political environment, and project team leader performance, are the most critical factors Moreover, a strong positive relationship was observed between client objective, core competencies, industrial relation and physical environment. In conclusion, project success in Real Estate development can be achieved by focusing on delivering on time and with proper construction cost. Moreover, client’s involvement in project initiation and planning phase, placement of competent and skilled project leaders and comprehensive project safety and quality management are critical to real estate development project’s success.