Report by REP Academics published by the RICS Research Trust
The research is titled “Performance metrics, required returns and achieved returns for UK real estate development” and was carried out by Professor Neil Crosby, Dr Steven Devaney and Professor Peter Wyatt.
The aim of the research was to improve understanding of the form, extent and variability in financial returns sought by developers in both the residential and commercial real estate sectors. Existing information on the returns that developers want and the returns that they achieve is fragmented and so the researchers reviewed academic literature, published appraisals, company accounts and published performance data, as well as undertaking interviews and an online survey of developers, in order to understand more about this topic.
The findings from surveys and interviews reveal that simple, traditional appraisal models and profit metrics are still very prevalent in UK market practice, despite the availability of more sophisticated cash-flow based models for development appraisal. However, appraisal practices vary according to the size of developer, type and length of scheme and stage of the development process.
|Published||26 September 2019|
You might also like
REP hosts Future of the Planning Profession Webinar
Professor Gavin Parker, Dr Matt Wargent and Dr Emma Street organised and ran a high profile roundtable webinar entitled ‘The Future of the Planning Profession 2020’ as part of the UK-Ireland Planning Research Conference 2020 on 7th September. The webinar attracted well over 200 registered participants from all sectors: practitioners, professional bodies and academics.
Civic Societies and the Planning Process
Dr Christopher Maidment and Professor Angelique Chettiparamb from the Department of Real Estate and Planning have produced a report exploring the role of local civic societies in the English planning system.