Determining Success Factors for Real Estate Development Firms: Insights from Structural Equation Modeling

The Indian real estate sector has grown significantly due to rapid urbanization, economic development, and changing consumer preferences. However, it faces regulatory complexities, market volatility, and sustainability concerns. In the context of rapidly changing market dynamics and increasing complexity, understanding the factors contributing to the real estate development firm’s success is crucial for its strategic positioning and long-term success. This study tests the hypothesis that success factors influence a real estate development firm’s success and explores their impact. The methodology includes a thorough literature review to identify potential success and performance attributes, followed by a questionnaire survey among 105 professionals working in real estate development firms. The data was examined using descriptive statistical analysis and structural equation modeling techniques. The study tested the hypothesis that a positive relationship exists between success factors and the real estate development firm’s success, as measured by performance factors, identifying adaptive organizational culture as the most significant factor, followed by organizational efficiency. The study offers insights that can assist policymakers in formulating policies to foster sectoral growth and stability. Furthermore, this study enhances the existing knowledge base by providing empirical insights into the critical success factors vital for real estate development firms.