Profit factors in real estate projects: A comparison of academic studies and expert opinions

Primary goal of private real estate investment projects (REIPs) is to make profit. Therefore, REIP profitability is a critical performance indicator. This study identifies and compares the determinants of profit in REIPs in the academic literature and the industry. Firstly, 191 profitability factors are identified and categorized by an in-depth review of the literature over the period of 2000-2019 in the selected databases and journals on construction, real estate and economics. Secondly, a final set of 66 factors from the literature are constructed based on the frequency analysis and using the normative refinement technique. Finally, face to face interviews are conducted with 15 senior managers working in the Turkish real estate and construction sector to validate the factors identified with the comprehensive literature review. Consequently, 96 REIP profit factors were obtained from the industry. The comparative analysis of the literature review and expert opinions shows that beside the prevalent similarities, experts focus more on design related factors, previous project records, value engineering, testing and commissioning, and the work environment. The benefits of this study are twofold: (i) helping professionals to understand the factors required to control profitability in REIPs, (ii) providing an extensive list of profitability factors for future researchers.