An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis

Purpose This paper aims to examine the performance efficiency of 56 real estate assets within the rental sector in the UAE to evaluate the relative operation efficiency in relation to revenue generation. Design/methodology/approach The data envelopment analysis (DEA) approach was used to measure the...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Alafifi, Abdulrahman (author)
مؤلفون آخرون: Boussabaine, Halim (author), Almarri, Khalid (author)
منشور في: 2022
الموضوعات:
الوصول للمادة أونلاين:https://bspace.buid.ac.ae/handle/1234/2387
https://doi.org/10.1108/JFM-10-2021-0112
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author Alafifi, Abdulrahman
author2 Boussabaine, Halim
Almarri, Khalid
author2_role author
author
author_facet Alafifi, Abdulrahman
Boussabaine, Halim
Almarri, Khalid
author_role author
dc.creator.none.fl_str_mv Alafifi, Abdulrahman
Boussabaine, Halim
Almarri, Khalid
dc.date.none.fl_str_mv 2022-08
2023-11-07T10:01:48Z
2023-11-07T10:01:48Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv Alafifi, A., Boussabaine, H. and Almarri, K. (2022), "An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis", Journal of Facilities Management, Vol. ahead-of-print No. ahead-of-print.
1472-5967
https://bspace.buid.ac.ae/handle/1234/2387
https://doi.org/10.1108/JFM-10-2021-0112
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv Emerald Publishing Limited https://www.emerald.com/insight/content/doi/10.1108/JFM-10-2021-0112/full/html
dc.relation.none.fl_str_mv Journal of Facilities Management
https://www.emerald.com/insight/content/doi/10.1108/JFM-10-2021-0112/full/html
dc.subject.none.fl_str_mv operating efficiency, envelopment analysis, asset performance measurement, facilities management, operational performance, real estate
dc.title.none.fl_str_mv An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
dc.type.none.fl_str_mv Article
description Purpose This paper aims to examine the performance efficiency of 56 real estate assets within the rental sector in the UAE to evaluate the relative operation efficiency in relation to revenue generation. Design/methodology/approach The data envelopment analysis (DEA) approach was used to measure the relative operational efficiency of the studied assets in relation to the revenue performance. This method could produce a more informed and balanced approach to performance measurement. Findings The outcomes show that scores of efficiencies ranging from 7% to 99% in some of the models. The results showed that on average buildings are 75% relatively less efficient in maintenance, in term of revenue generation, than the benchmark set. Likewise, on average, the inefficient buildings are 60% relatively less efficient in insurance. Result also shows that 95% of the building assets in the sample are by and large operating at decreasing returns to scale. This implies that managers need to considerably reduce the operational resources (input) to improve the levels of revenue. Research limitations/implications This study recommends that the FM operational variables that were found to inefficiently contribute to the revenue should be re-examined to test the validity of the findings. This is necessary before generalising or interpolating the results that are presented in this study. Practical implications The information obtained about operational performance can help FM managers to understand which improvements in the productivity of inefficient FM resources are required, providing insight into how to reduce operating costs and increase revenue. Originality/value This paper adds value in using new FM operational parameters to evaluate the efficiency of the performance of built assets.
id budr_df6e93f66da14c8ea82e5f1be2174047
identifier_str_mv Alafifi, A., Boussabaine, H. and Almarri, K. (2022), "An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis", Journal of Facilities Management, Vol. ahead-of-print No. ahead-of-print.
1472-5967
language_invalid_str_mv en
network_acronym_str budr
network_name_str The British University in Dubai repository
oai_identifier_str oai:bspace.buid.ac.ae:1234/2387
publishDate 2022
publisher.none.fl_str_mv Emerald Publishing Limited https://www.emerald.com/insight/content/doi/10.1108/JFM-10-2021-0112/full/html
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
spelling An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysisAlafifi, AbdulrahmanBoussabaine, HalimAlmarri, Khalidoperating efficiency, envelopment analysis, asset performance measurement, facilities management, operational performance, real estatePurpose This paper aims to examine the performance efficiency of 56 real estate assets within the rental sector in the UAE to evaluate the relative operation efficiency in relation to revenue generation. Design/methodology/approach The data envelopment analysis (DEA) approach was used to measure the relative operational efficiency of the studied assets in relation to the revenue performance. This method could produce a more informed and balanced approach to performance measurement. Findings The outcomes show that scores of efficiencies ranging from 7% to 99% in some of the models. The results showed that on average buildings are 75% relatively less efficient in maintenance, in term of revenue generation, than the benchmark set. Likewise, on average, the inefficient buildings are 60% relatively less efficient in insurance. Result also shows that 95% of the building assets in the sample are by and large operating at decreasing returns to scale. This implies that managers need to considerably reduce the operational resources (input) to improve the levels of revenue. Research limitations/implications This study recommends that the FM operational variables that were found to inefficiently contribute to the revenue should be re-examined to test the validity of the findings. This is necessary before generalising or interpolating the results that are presented in this study. Practical implications The information obtained about operational performance can help FM managers to understand which improvements in the productivity of inefficient FM resources are required, providing insight into how to reduce operating costs and increase revenue. Originality/value This paper adds value in using new FM operational parameters to evaluate the efficiency of the performance of built assets.Emerald Publishing Limited https://www.emerald.com/insight/content/doi/10.1108/JFM-10-2021-0112/full/html2023-11-07T10:01:48Z2023-11-07T10:01:48Z2022-08Articleapplication/pdfAlafifi, A., Boussabaine, H. and Almarri, K. (2022), "An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis", Journal of Facilities Management, Vol. ahead-of-print No. ahead-of-print.1472-5967https://bspace.buid.ac.ae/handle/1234/2387https://doi.org/10.1108/JFM-10-2021-0112enJournal of Facilities Managementhttps://www.emerald.com/insight/content/doi/10.1108/JFM-10-2021-0112/full/htmloai:bspace.buid.ac.ae:1234/23872023-12-13T06:47:11Z
spellingShingle An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
Alafifi, Abdulrahman
operating efficiency, envelopment analysis, asset performance measurement, facilities management, operational performance, real estate
title An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
title_full An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
title_fullStr An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
title_full_unstemmed An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
title_short An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
title_sort An empirical study on measuring operating efficiency and revenue of real estate assets in the UAE using data envelopment analysis
topic operating efficiency, envelopment analysis, asset performance measurement, facilities management, operational performance, real estate
url https://bspace.buid.ac.ae/handle/1234/2387
https://doi.org/10.1108/JFM-10-2021-0112