IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2025_164.html

Exploring application contexts of profitability indicators in real estate development

Author

Listed:
  • Marianne Wyrwoll
  • Elisabeth Beusker

Abstract

A multitude of profitability indicators are at the disposal of the construction and property industry for the purpose of evaluating the profitability of construction projects. These indicators offer a comprehensive overview, enabling the synthesis of important information. Nevertheless, the application of profitability indicators also results in the compression of data, potentially leading to the loss of crucial information. The failure to consider prospective developments in property development decisions can incur substantial risks. As part of the research, profitability indicators were analysed with regard to their application contexts in real estate development. A total of 249 real estate developers in Germany were surveyed on the use of profitability indicators in the project business. In addition, data was collected on the respective companies, on the employees responsible for the application of the indicators, and on the specific projects. Overall, 63 profitability indicators were identified. The findings indicate that the application of indicators is not solely based on their target orientation, but that alternative factors also influence the application of profitability indicators. The objective of this study is twofold: firstly, to ascertain the application of these indicators in the context of real estate development, and secondly, to identify inaccuracies in the application.

Suggested Citation

  • Marianne Wyrwoll & Elisabeth Beusker, 2025. "Exploring application contexts of profitability indicators in real estate development," ERES eres2025_164, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2025_164
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2025-164
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2025_164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.