Review: Factors That Can Contribute to Profit Maximization in Real Estate
DOI:
https://doi.org/10.56830/IJAMS10202303Keywords:
Real estate, profit maximization, , property market, real estate pricesAbstract
Profit maximization is a central business goal that can influence the strategies adopted by real estate developers, investors, companies, and sellers. Achieving profit maximization can ensure the continued sustainability of a real estate business and offer new avenues of progress and development within the real estate sector. Unfortunately, profit maximization remains a challenge in the UAE. The oversupply of homes in the UAE can diminish the potential for profit maximization and reduce the viability of real estate investments. It can also put the future of the sector at risk. Identifying the variables that impact real estate profitability can offer a solution to these challenges. Accordingly, this study reviews the factors that have an impact on real estate price levels in the UAE and other countries. As per our findings, the key factors that impact profit maximization in real estate include GDP, inflation rate, financing methods, savings, Consumer Price Index, supply and demand ratio, land costs, construction costs, the sale of off-plan properties, buying capacity, and taxes and fees. We also offer suitable recommendations on the use of these variables for maximizing profit. Real estate developers, companies, sellers, and investors can attempt to integrate these variables in their pricing strategies for real estate and reap potential benefits.
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