Evaluation of the Impact of Prevalent Risks in the Real Estate Development Industry: A Comparative Study of the USA, UK, and Azerbaijan

Abstract

Real estate development is exposed to a combination of financial, regulatory, construction, market, legal and environmental risks, yet comparative research often focuses on mature markets and treats emerging economies as peripheral cases. This study is needed because developers, lenders and policymakers increasingly operate in cross-border environments where the same risk category produces different impacts depending on institutional depth, credit conditions, land governance and construction-market capacity. The aim of the study is to evaluate the impact of prevalent risks in the real estate development industry through a comparative analysis of the USA, the UK and Azerbaijan. The study adopts a conceptual and applied comparative design. Data were obtained from recent official statistics, central-bank and market reports, and academic literature; measured variables include financing risk, construction-cost risk, regulatory risk, demand and affordability risk, climate and insurance risk, and legal/land risk. The analysis uses documentary review, comparative risk mapping and a five-point impact-probability scoring matrix. Planning risk is most critical in the UK, affordability and insurance risk in the USA, and title/infrastructure risk in Azerbaijan. The study is limited by the absence of primary developer survey data and by differences in national statistical classifications. The results recommend stronger risk registers, scenario-based feasibility analysis, permitting reform, cost-indexed contracts and improved market-data transparency. Future research should test the proposed scoring model with developer-level survey or project-level financial data.