Influence of financing methods on the value of commercial properties: A case of Airport City

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The real estate industry is lucrative industry as the developing economy continue to boom. It has being likened to the rise and fall of most economies. In Ghana, the industry is a relatively young one, and has shown signs of growth and expansion. It is a capital intensive industry, where availability of finance is crucial in determining the viability of any development. In valuing real estate developments, focus is placed on four main factors, that is: location, structural quality, use/purpose and legal ownership. Even though the industry is capital intensive, the mode of financing is considered in the valuation of developments. The focus of this thesis was thus to investigate how the methods of financing influence the value of commercial properties, using Airport City, Accra, as a study area. It sought to establish a relationship between the methods of financing and the valuation of commercial properties. The research also considered the methods of financing and valuation at Airport City, Accra, and concluded by making recommendations for developers and Valuers. Having analysed data collected using thematic and narrative analysis, it was found that, for developments within the study area, there is indeed a relationship between the method of financing and the value of commercial properties. It was thus recommended that developers consider what method of financing they adopt in determining the value of their properties.
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2013
Ghana, Airport City, Accra, real estate, valuation