Assessing risks developers encounter in commercial real estate in Kampala City.
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The study focused on assessing the risks developers encounter in commercial estate development.”. The study was guided by the following objectives; To identify the risks faced in development of commercial real estate. To identify measures how these risks can be elided. To identify strategic approach towards risk assessment. To investigate the extent to which the risks taken affect the developer’s rate of return of real estate. The study involved qualitative and quantitative approaches to gather data from over 20 respondents. Data was collected using questionnaire and interview and was analyzed using Microsoft excel software to make organized data representation. Evaluative by purpose was to provide an assessment if it follows that developers encounter risks in different stages of development and how best they can be eliminated or worked around. The study findings indicate risk is a part commercial real estate development thus developers only work along with the existing risks to maximize profit. The research further shows that there are many more risks in commercial real estate, however the study was focused on what majority of the respondents provided. The analysis also indicates that several people in the real estate industry are not day to day commercial real estate players but rather have an area in which they specialize such as Urban Planners. Therefore, from analyzing the data, we concluded that developers end up hiking the property prices depending of the level of risk encountered at each development stage.