IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/39442.html

The Evolution of Analytical Hierarchy Process (AHP) as a Decision Making Tool in Property Sectors

Author

Listed:
  • Mohd Safian, Edie Ezwan
  • Nawawi, Abdul Hadi

Abstract

In the 1970s, Analytical Hierarchy Process (AHP)has been introduced accidentally by Saaty [4] as a tool to allocate resources and planning needs for the military. However, due to its ability to identify the weightage of variables efficiently in research, it has become popular in many sectors. Basically, AHP is a tool in decision making that arranges the variables into a hierarchical form in order to rank the importance of each variable. Leading to the weightage calculation of the variables indirectly researchers in all over the world also have discovered that AHP can be modified and used not only for military but in any sectors as well. From the military sector, the modification of AHP has been widely used in other sectors such as automotive, medical, education, business and also administration. It has also been discovered that AHP has given an impact in the property market field. The application of AHP in the property market has taken place in many ways such as assessment of building quality and performance, tenants perception and expectation, identification of the tenants or occupiers needs, investment portfolio as well as grading and classification. In a global context, the advanced AHP modification has been used in property research. However, in Malaysia, only a few property research had used AHP nevertheless, it has shown positive development. Therefore, this paper aims to identify the evolution of the AHP usages in a global and local context, especially in property sectors. The findings from this paper will highlight some critical issues in using AHP in property sectors and provides some suggestions for improving the use of it.

Suggested Citation

  • Mohd Safian, Edie Ezwan & Nawawi, Abdul Hadi, 2011. "The Evolution of Analytical Hierarchy Process (AHP) as a Decision Making Tool in Property Sectors," MPRA Paper 39442, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39442
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/39442/2/MPRA_paper_39442.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patrick Sik-Wah Fong & Sonia Kit-Yung Choi, 2000. "Final contractor selection using the analytical hierarchy process," Construction Management and Economics, Taylor & Francis Journals, vol. 18(5), pages 547-557.
    2. Ball, J'Noel & Srinivasan, Venkat C, 1994. "Using the Analytic Hierarchy Process in House Selection," The Journal of Real Estate Finance and Economics, Springer, vol. 9(1), pages 69-85, July.
    3. Anish Sachdeva & Dinesh Kumar & Pradeep Kumar, 2008. "A methodology to determine maintenance criticality using AHP," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 3(4), pages 396-412.
    4. Bender, A. & Din, A. & Hoesli, M. & Brocher, S., 1999. "Environmental Preferences of Homeowners: Further Evidence using the AHP Method," Papers 99.10, Ecole des Hautes Etudes Commerciales, Universite de Geneve-.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohd Safian, Edie Ezwan & Nawawi, Abdul Hadi, 2012. "Combining AHP with GIS in the evaluation of locational characteristics quality for purpose-built offices in Malaysia," MPRA Paper 39546, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Narula, Subhash C. & Wellington, John F. & Lewis, Stephen A., 2012. "Valuating residential real estate using parametric programming," European Journal of Operational Research, Elsevier, vol. 217(1), pages 120-128.
    2. Mulliner, Emma & Smallbone, Kieran & Maliene, Vida, 2013. "An assessment of sustainable housing affordability using a multiple criteria decision making method," Omega, Elsevier, vol. 41(2), pages 270-279.
    3. Junling Zhang & Xiaowen Qi & Changyong Liang, 2018. "Tackling Complexity in Green Contractor Selection for Mega Infrastructure Projects: A Hesitant Fuzzy Linguistic MADM Approach with considering Group Attitudinal Character and Attributes’ Interdependency," Complexity, Hindawi, vol. 2018, pages 1-31, December.
    4. Franco Cheung & Judy Leung Fung Kuen & Martin Skitmore, 2002. "Multi-criteria evaluation model for the selection of architectural consultants," Construction Management and Economics, Taylor & Francis Journals, vol. 20(7), pages 569-580.
    5. K. C. Lam & T. S. Hu & S. T. Ng, 2005. "Using the principal component analysis method as a tool in contractor pre-qualification," Construction Management and Economics, Taylor & Francis Journals, vol. 23(7), pages 673-684.
    6. Agung Sutrisno & Hyuck Moo Kwon & Indra Gunawan & Steven Eldridge & Tzong Ru Lee, 2016. "Integrating SWOT analysis into the FMEA methodology to improve corrective action decision making," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 17(1), pages 104-126.
    7. Abeysekara, Baudhi & Perera, Piyaruwan & Chhipi Shrestha, Gyan Kumar & Gunaruwan, Lalithasiri & Kumarage, Amal & Sadiq, Rehan & Hewage, Kasun, 2021. "Improving the capital deployment efficiency: An infrastructure investment planning process in transportation project," Research in Transportation Economics, Elsevier, vol. 88(C).
    8. Mousakhani Ehsan & Ranjbar Shirzad & Ashoori Taha, 2018. "Identification and evaluation of criteria for selecting contractors using a risk management approach," Organization, Technology and Management in Construction, Sciendo, vol. 10(1), pages 1747-1760, July.
    9. Mats Wilhelmsson & Jianyu Zhao, 2018. "Risk Assessment of Housing Market Segments: The Lender’s Perspective," JRFM, MDPI, vol. 11(4), pages 1-22, October.
    10. Mulliner, Emma & Malys, Naglis & Maliene, Vida, 2016. "Comparative analysis of MCDM methods for the assessment of sustainable housing affordability," Omega, Elsevier, vol. 59(PB), pages 146-156.
    11. Abdul Hamid Mar Iman & Fu Yek Pieng & Christopher Gan, 2012. "A Conjoint Analysis of Buyers' Preferences for Residential Property," International Real Estate Review, Global Social Science Institute, vol. 15(1), pages 73-105.
    12. Dmytrów Krzysztof & Gnat Sebastian, 2019. "Application of AHP Method in Assessment of the Influence of Attributes on Value in the Process of Real Estate Valuation," Real Estate Management and Valuation, Sciendo, vol. 27(4), pages 15-26, December.
    13. Nadeera Abdul Razak & Obuks Ejohwomu & Peter Fenn & Kamil Okedara & Babatunde Dosumu & Firdaus Muhammad-Sukki, 2021. "Identification of Health and Safety Prequalification Criteria for Contractor Selection in Construction Projects: A Systematic Review," Energies, MDPI, vol. 14(21), pages 1-17, November.
    14. S Taghipour & D Banjevic & A K S Jardine, 2011. "Prioritization of medical equipment for maintenance decisions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(9), pages 1666-1687, September.
    15. Martin Ekstrom & Hans Bjornsson & Clifford Nass, 2003. "Accounting for rater credibility when evaluating AEC subcontractors," Construction Management and Economics, Taylor & Francis Journals, vol. 21(2), pages 197-208.
    16. Nina Kutsch & Pat McAllister & Graeme Newell, 2005. "Private Property Vehicles: The Valuation of Interests in Limited Partnerships," Real Estate & Planning Working Papers rep-wp2005-26, Henley Business School, University of Reading.
    17. Andre Bender & Allan Din & Philippe Favarger & Martin Hoesli & Janne Laakso, 1997. "An Analysis of Perceptions Concerning the Environmental Quality of Housing in Geneva," Urban Studies, Urban Studies Journal Limited, vol. 34(3), pages 503-513, March.
    18. Junn-Yuan Teng & Wen-Chih Huang & Maw-Cherng Lin, 2010. "Systematic budget allocation for transportation construction projects: a case in Taiwan," Transportation, Springer, vol. 37(2), pages 331-361, March.
    19. Tom Kauko, 2004. "Towards Infusing Institutions and Agency into House Price Analysis," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1507-1519, July.
    20. Killemsetty, Namesh & Johnson, Michael & Patel, Amit, 2022. "Understanding housing preferences of slum dwellers in India: A community-based operations research approach," European Journal of Operational Research, Elsevier, vol. 298(2), pages 699-713.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

    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:pra:mprapa:39442. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.