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Building developments are often capital intensive, have a long payback period and many associated risks and uncertainties. This makes investments in building projects to be a big challenge. This study aims to develop a computerized simulation-based binomial model (CSBBM) for building investment appraisal with a view to improving the economic sustainability of proposed building projects.

Mathematical equations and algorithms were developed based on the binomial method (BM) of real options analysis and then implemented on a computer system. A hybrid algorithm that integrates Monte Carlo simulation (MCS) and BM was also developed. A real-life project was used to test the model. Sensitivity analysis was also conducted to explore the influence of input variables on development option value (DOV).

The test result shows that the model developed provides a better estimate of the value of an investment when compared with traditional net present value technique, which underestimate the value. Moreover, inflation rate (i) and rental value (Ri) are the most sensitive variables for DOV. An increase in i and Ri by just 5% causes a corresponding increase in DOV by 202% and 132%, respectively. While the least sensitive variable is the discount rate (r), as an increase in r by 5% causes a corresponding decrease in DOV by just 9%. The CSBBM is capable of determining the optimal time of development of buildings with an accuracy of 80.77%.

The hybrid model produces higher DOV than that of only the BM because MCS considers randomness in uncontrollable variables. Thus, building investment decision-makers should always use MCS to complement the BM in an investment analysis.

There is limited evidence on the use of this kind of hybrid model for determining DOV in practice.

Executives are often faced with the challenge of making sound decisions regarding the product and geographic markets into which the company should diversify. This situation is even more glaring with respect to construction companies, owing to the volatile nature of the construction market. The purpose of this paper is to present empirical results on the impact of geographic diversification on the performance and risk profiles of construction firms in the UK.

Published financial data of construction firms covering the period 1995‐2004 are employed in the paper. From this data, extent of geographic diversification, performance, and risk are computed. Firms are grouped based on the extent of diversification into undiversified, moderately diversified, and highly diversified. Performance of these groups is then compared using the t‐statistic based on return on equity (ROE), return on total asset (ROTA), return on capital employed (ROCE), and profit margin (PM).

The results show that firms that remain focused within the UK market outperform those that expand into international markets on PM only. There is no significant difference in performance based on ROE, ROTA, and ROCE. However, as expected, highly diversified firms are found to exhibit the best risk profile.

These results are invaluable to managers in strategic decision making. They also provide a first step to understanding the nature of the relationship between geographic spread and performance of UK construction firms.

The purpose of this paper is to highlight the challenges of property development and management in northern Nigeria drawing upon the experiences of Bauchi, Gombe and Kaduna states.

Based on a longitudinal evaluation of these trends and challenges, this study draws upon a literature review and practitioner insights on property investment efforts in northern Nigeria. It also benefits from insider accounts related to the author’s 20-years’ experience of work both in both Nigeria and the UK.

The study highlights the salient factors that have brought about the housing challenges in northern Nigeria. Arguably poor property development and management initiatives have had direct correlations with the weak property management practices in these states and thereby further restricted investments in the real-estate sector in northern Nigeria.

The limitations of the study are based on those attributable to personal observation and ethnographic studies as adopted in this case. This impacts upon the generalisability of the findings, however, sound the propositions may be. Areas for future research inquiry are also proffered.

The study is a critical reflection of developments in property management taken from the purview of the Nigerian real-estate market. While primarily a viewpoint paper, it does highlight some of the key challenges facing property management in a manner not previously discussed in the literature.