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Determinants of financial performance of real estate brokerage industry in Iran

Hassan F. Gholipour (Department of Accounting, Economics and Finance, Swinburne Business School, Swinburne University of Technology, Melbourne, Australia)
Muhammad Najib Razali (Faculty of Geoinformation and Real Estate, Universiti Teknologi Malaysia, Johor Bahru, Malaysia)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 13 July 2017

Issue publication date: 5 September 2017




The aim of this study is to investigate the factors influencing the financial performance of the real estate brokerage (REB) industry in Iran.


The authors use two surveys concerning REB firms from provinces of Iran which were collected by the Statistical Centre of Iran in 2003 and 2011. The authors apply the pooled ordinary least squares and panel fixed-effects regressions to estimate the relationships between the explanatory variables and performance of REB industry.


The results indicate that in provinces where REB firms invest more in residential properties, vehicles, computers and business software, REB firms are more active in residential and non-residential property sales, and rent transactions have higher levels of financial performance. In addition, the results show that in provinces where REB firms invest more in non-residential properties and office furniture, REB industry has lower levels of financial performance. The authors also find that Iranian REB industry has significantly benefited from international economic and financial sanctions.

Practical implications

In terms of managerial implications, the authors findings potentially serve as guidance for Iranian REB firms to allocate resources and adjust their strategy to enhance their financial performance.

Originality value

Previous studies have typically been conducted in countries where REB firms mainly operate as intermediaries in transactions between property buyers and sellers, whereas in Iran, REB firms not only provide services to their clients but also are very active speculators in the property market. Furthermore, while there have been many studies that have investigated the various determinants of performance and efficiency of REB industry in developed economies, there is scant literature around this topic for Middle Eastern countries.



Gholipour, H.F. and Razali, M.N. (2020), "Determinants of financial performance of real estate brokerage industry in Iran", International Journal of Housing Markets and Analysis, Vol. 10 No. 4, pp. 489-502.



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