Factors Affecting Real Estate Business in West of England

Determining factors affecting thriving of real estate business in West of England

Abstract
The main purpose of this study was to determine the factors affecting growth of real estate
business in the West of England. For the aforementioned objective to be met, the following
specific objectives were developed i.e. to assess the effect of advertisement on price of a house
and to construct a model that best predict the price of a house in West of England. The study
targeted experienced and non-experienced business personnel in real estate industry. Stratified
sampling technique was employed in the selection of thirty participants who participated in data
collection process. Pearson’s correlation and multiple linear regression were employed in the
analysis of data. Advertising expenditure was found to be correlated with both selling price and
marked price of a house. Additionally, the study constructed a model that could be used to best
predict the selling price of a house in West of England with the effective predictor variables
being number of bathrooms and the marked price.

Introduction
Real estate business is a lucrative business that many business investors dream of investing in, it
involves sale of land and buildings constructed on a particular piece of land1. The idea of
growing the real estate industry is being fulfilled by the partisans who heavily invest into it to
ensure that they maximize their profits in return. Despite some of the challenges faced in the
industry just like other industries, the industry is still of value and hence to the economy at
large2. Countries and states across the world get their revenues from real estate industry which
help in the sustenance and growth of economies3. In most cases, products in housing market such
as piece of land have had its value appreciating with time which attracted many investors into it
with the expectations that the value of their capital will increase with time. A number of factors
need to be put into consideration when venturing into real estate business which are not far from
factors considered when getting into any other businesses. Negotiation skills is the foremost
factor that the investors need to have since it will be used more often in bargaining the prices
with the willing and capable buyers. The seller is supposed to be moderate in his pricing so that
he does not overstate or understate the price and end up selling at a loss. Investors also consider
the population and the geographical location of the pieces of land and buildings. Densely
populated areas are believed to have positive effect in business performance and therefore those
getting into the industry should put their focus geographical location with relatively good
population4. This may not hold for all the prospective buyers as some particularly those looking
for residential places would prefer having their mansions in a less populated neighborhood for
their own reasons as opposed commercially based ones. Such preferences help in balancing the
business ecosystem in the industry to avoid congestion in one place. This study is then aimed at

evaluating the possible factors that could be affecting the growth of real estate business in the
West of England.
Project Objectives
This study was guided and designed to help in determining factors affecting the thriving of real
estate business and thus had the following specific objectives to achieve at the end:
1. To assess the effect of advertisement on selling price of a house in West of England
2. To construct a model that best predict the selling price of a house in West of England
Project questions
This study was guided by a general question “what are the factors affecting the thriving of real
estate business in West of England?” This question was answered through the following specific
research questions:
1. What is the effect of advertisement on the price of a house in West of England?
2. How the constructed model best predicts the price of a house in West of England?
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1 Haslam and others "Real Estate Investment Trusts (REITS): defined real estate as dream of investors
that involves buying and selling of land and buildings. Accounting Forum 2015. Vol. 39. At p 4.
2 Squires and others, International approaches to real estate development. Routledge 2014. They stated
that real estate has value to the economy despite the challenges (2014) p 42.
3 Vanags, and others, they stated that real estate industry contribute to the growth of economies.
Procedia Engineering 57 (2013) p 1223-1229.
4 Sahut and others. Small Business Economics 42.4 (2014): p 663-668.