Assesment on Factors Affecting the Construction and Management of Real Estate in Jimma Town

Abstract

Real estate is an issue of economic importance all over the world especially in developing countries. Real estate refers to the properties consists of houses or land. It can be in two forms private and public. Private real estates are real estates owned by private sector and government real estates are real estates owned by the government. Real estate construction is a process of building or constructing a real estate for the users. Whereas real estate management operates, control and over sight the real estate business. The main objective of this study was to assess the factors affecting the construction and management of real estate in Jimma Town.To accomplish the objective of the paper; a survey was carried out on the people of Jimma town who have the knowledge in constructing and management of real estate, who are from government side , who live in real estate and site supervisors at the real estate sites. questionnarire, document analysis and observation were used to collect the data. This study adopted both quantitative and qualitative mixed approach type of research design.the analysis showed that there is a visible problem on both management of governmental real estate and construction of private real estate. Based on the resalt of the study, planning , quality, time management, skilled laubor, financial, design and contractors capacity problems are problems related with management system of real estate. The critical factors were proposed for the construction problem namely lack of financial motivation system, construction method, tool and equipment shortage, lack of labor experience and material shortage. Finally the result of the study declares that there are mechanisms to be taken to control management problem on real estate. Among these the top five are timely updated schedule, skilled labor, proper coordination, good communication and periodic meeting. Moreover, survey results recommended that the management should do the following for improving management system such as taking training , there must be rapid response from managers for emergency maintenance, good periodic meeting, the management part must be done by experienced managers and the management system must be updated by learning from others.also the recommendation goes to the possible causes for improving the private real estate construction The contractor must share knowledge of different construction methods from others ,the government must facilitate different financial system like funds and the government should facilitate easy way for delivering materials, tools and equipment.