Analyzing the London Residential Property Market - Research Proposal Example

Analyzing the London Residential Property Market for Potential Foreign Investors RESEARCH METHODOLOGY Introduction This chapter discusses the suggested research methodology for the present study. It has been already explained in the previous chapter that the study seeks to analyze the possibilities of investment in the London property market for the potential investors from different parts of the world. In this chapter, the researcher attempts to suggest an appropriate research methodology. The chapter also includes background of the study, research problem, objectives and hypothesis. The chapter is concluded with the limitations of the study, which could not be avoided by the researcher at any cost. Background of the Study In any research study, it is a practice that researcher starts his journey by narrating the background of his/her study. It implies the circumstances in which the present study is desired to be undertaken. The back ground of a study explains why the study is intended and what motivates the researcher to undertake such a study. In the current economic recession as a result of the financial crisis in the United States of America and hence the world over, the prosperity of real estate property has come down drastically. Many reasons can be attributed to this crisis which the world has ever experienced before. The sudden decline in the property market in London has attracted investors both inside and outside the country. Foreign investors are ready to capitalize the situation by flowing huge amount of funds to real estate and properties, which, they think are likely to flourish in the near future. To help the foreign investors in their informed investment decision making, an attempt is made by the researcher by analyzing the London real estate market and supporting them for their investment decisions. Investment decisions presuppose the availability of relevant and reliable data on the market and many other economy related statistics. But, such data collection is a huge task requiring research and analytical aptitude. The researcher attempts to provide the investors with all economic and business data after a detailed analysis of the market and a survey among concerned people. Research Problem The research process for any study starts with the identification of research problem (s)/question(s). Research problem is the fundamental reason for which the present study is undertaken. In the absence of a research question, nothing needs to be studied and no solution needs to be ascertained. Conversely, once research problem for a study is clearly identified and defined, all the other stages in the research process will be easy and smooth. Many factors will have to be taken care of before expressing the research question. A research which is unambiguously expressed cannot be easily worked out and problems may arise at any stages of the process. Therefore, it can be said that all research questions are not researchable. Naturally, a question may arise in this context as to what makes a problem researchable. Simply, a question is said to be researchable when it is specific, measurable, and unambiguous. In the present study, the researcher tries to explore the opportunities of investment in residential property market for foreign investors. The study is undertaken in the U K with special reference to residential market in London. Though numerous data are available on property market anywhere in the world, its accuracy and reliability are seldom questionable. The market/forces in the market keep on changing from time to time and most of the data available need not be updated. Investment decisions with outdated data would find no benefit to investors and it may even result in huge losses which cannot be recoverable later on. Moreover, data available at a moment are no longer valid and useful after few minutes/hours. At this juncture, an in-depth analysis of the market is relevant and indispensible for supplying timely and accurate information. Therefore, the present study on the housing property market in London is a relevant and timely research. A scientific approach, however, is needed at all levels of research process and extra care and caution must be paid to data collection and analysis. Past data collected from various secondary sources are of much use in the study. But, the researcher has to ensure that they are relevant and reliable for the study. Objectives of the Study Every research has certain purposes for which it is carried out. These purposes of research are coined as the objectives of the study. Objectives of the study answer the basic question why this study is undertaken. The objectives set must be specific or should not be general in nature. Specific questions allow the researcher to focus on aspects that are relevant and direct him/her towards the end results smoothly. The present study has the following objectives: 1. To analyze the data relating to residential property market in London; 2. To supply information on the market to foreign investors for their informed decision making; and 3. To serve as a basis for further research in the same field. Hypotheses A research to be complete must have a hypothesis to prove or disprove something. A hypothesis is an assumption about the probable outcome of research, which is yet to be tested. The research problem, objectives and hypothesis are interrelated and expressed in different ways so as to extend the scope of the study. The probable outcome is the solution to the research problem, which demanded the very need for a research. The present study is also undertaken with a hypothesis. It is stated as below: 'Analyzed data on the London property market can facilitate the potential foreign investors for their informed decision making and investment' The above hypothesis is called null hypothesis by statisticians and in case the above statement turns to be untrue, its alternative hypothesis is formed and accepted. The alternative hypothesis is the exact opposite of the null hypothesis and need not be expressed. Initially it is implied and in case the null hypothesis is not valid after the research, the alternative hypothesis is accepted. In this case, the alternative hypothesis can be written as below: 'Analyzed data on the London property market can in no way facilitate the potential foreign investors for their informed decision making and investment' Research Methodology Every research study has a unique way of exploring a solution to its problem. This distinct steps or way of doing a particular research is known as research methodology. Research methodology for a study is unique and takes a fresh approach. However, the approach and methodology of past studies done in the similar field may be taken as a basis. Methodology is a collective term which includes many aspects such as data collection procedure, sampling design and use of analytical tools. It tells us how a research is systematically undertaken. In this context a distinction is to be made between research methods and research methodology. Research methods refer to the all the available methods for the conduction of a research, whereas research methodology is the way of doing a particular research using methods. In the words of Dr. C. R. Kothari, "research methodology has many dimensions and research methods do constitute a part of the methodology and the scope of methodology is wider than methods" (Kothari 2005). The flowing paragraphs will discuss the methodology applied for conducting the present study. The present study is both qualitative and quantitative in nature. A qualitative research is one which makes use of non-economic/financial data for the purpose of analysis and interpretation whereas a quantitative research makes use of economic data for decision making. For the purpose of present research, both economic as well as non-economic data are to be collected and analyzed to find the solution to the problem. This study is basically a survey research, which collects both primary and secondary data. However, secondary data constitute the main source of data by which majority of the analysis has been done. The data collected are edited and coded to ensure their correctness and authenticity and are sent for a detailed analysis using simple statistical techniques. Research Design The approach by which research is undertaken is known as research design. It is concerned with the application of certain fundamental principles of research in the course of research progress. Social science research fall mainly under two broad categories, namely descriptive and explanatory research. Descriptive research deals with the description of what has happened or happening about a particular phenomenon. In a descriptive study, the characteristics about the phenomenon under study are detailed. As opposite to this, an explanatory research finds the reasons for the phenomenon described earlier. It tries to ascertain how frequently certain things happen and the association between the variables under study. Thus, descriptive research explains what is going on and explanatory study diagnose why it is happening (Vaus 2001). The present research is a descriptive one as it deals with mere explanation of what has happened in the London property market. It accounts for only the characteristics of the property market. Sample Design This study is basically a survey research. A survey research can be carried out in two ways. First, a complete enumeration survey wherein all the units in the population / universe are studied to arrive at the conclusion. The result of complete enumeration method is always reliable and the researcher need not worry about the accuracy of the result. But it is impossible in many cases as it is time consuming, expensive, and non-operational. Sample survey is the alternative method wherein a selected number of units from the population are taken for a detailed study and the conclusions derived there from are generalized for the entire population. This is a superior method in terms of cost, time. Accuracy can also be ensured as the sample units are the real representatives of the population from where such samples have been drawn. The sample units are most likely to exhibit the characteristics of population as they are taken from the population. Here, two sets of samples are used in the study as to be used for both primary and secondary data. Secondary data, here, refer to the price of residential house in the London market over a certain period of time collected from reliable source. The prices at consecutive dates over the period of time are used for analysis and logical decisions. Similarly, primary data on the property prices are collected through an experienced survey among experts in the London property market. Period of Study The study covers a period of one year from February, 2008 to February, 2009. The data concerning the property prices are collected from the website of London Property Watch (londonpropertywatch.co.uk). Population of the Study For the purpose of this study, houses have been segregated into four categories such as 1 bedroom, 2 bedrooms, 3 bedrooms and bigger home. Data have been collected separately for all these categories for analysis purpose. As mentioned earlier that there are two sets of samples for the present study and hence there are two population frames. The first set of samples (data on the price of property in London) is taken from the entire price published on the website for different categories of houses during the period of study. Therefore, the entire price list for different categories of London house properties published on the above mentioned website over a period of one year constitute one of the population frame. The second set of population comes from the list of names of persons engaged in property market such as agents. Sampling Procedure Sampling procedure is the process of drawing sample units from a population to infer about the population. The selection of sampling procedure is important because the one selected must be appropriate to the situation. As there are a number of sampling methods, the researcher has to select the apt one which ensures high accuracy, low personal bias and other considerations like time, cost etc. Random Sampling/ Probability Sampling method is the most commonly used method as it ensures the presence of above parameters. Here, simple random sampling has been used to draw samples from both populations to constitute two set of samples. Data Sources The study relies both on primary and secondary data. Primary source include an experience survey carried out among the persons associated with London property market such as agents who are experienced and able to effectively quantify the performance of property market. The data from persons are collected by means of a survey by serving questionnaire. Therefore, questionnaire is tool of data collection. The questionnaire is prepared by incorporating closed questions, which are arranged logically. The question in the interview schedule is more or less descriptive and respondents have the freedom to express their view about property market and its performance for the last one year. The secondary sources include all data available from records and published materials on London property market and its performance. Literatures available on the topic also form part of the secondary source and they are extensively used in the literature part and no analysis is expected to be made out of them. Data Collection Procedure The data for the first set of sample have been collected using the price data published on the website 'London Property Watch' for the given period of time. Data have been collected separately for three types of homes for the convenience of analysis and its interpretation. Data from the second set of samples have been collected through an experienced survey by using a well structured questionnaire. The questionnaire has been sent to the personal email address of the respondents with a covering letter requesting them to reply and send back the filled in questionnaire. Data Collection Instruments It includes the tools used to collect the data concerning the study from the respondents. The present study involves two sets of samples which uses primary and secondary data separately. For the first set of samples, data have been collected from the internet source and the tool used here is any browsing software such as internet explorer. The data from the second set of samples have been collected using a well structured questionnaire. Data Editing The data collected from primary source always need editing. Editing is the process of eliminating the errors and mistakes from the raw data so as to make them ready for further analysis. Editing is done for eliminating mistakes, completing an incomplete data, omitting errors etc. The secondary data need not be edited as they are in processed form and they have been collected by somebody for some other purpose. However some kind of arrangement may be necessary so as to make them ready for analysis. Data Coding The quantitative and non-quantitative data which have been edited are now converted in to another form called codes for easy and convenient analysis. Codes are used to convert data which are lengthy and cumbersome for analysis. Coding is made in the Microsoft Excel Spreadsheet Program. Analysis is performed using simple statistical methods like percentage and measures of central tendencies. Data Analysis After the data have been tabulated and coded for easiness and convenience for further processing, the next step is analysis. Analysis involves the conversion of raw data into meaningful information so as to make them appropriate for arriving at logical finding and conclusions. This section of the report examines how the researcher has analyzed data and what all methods have been used. The proposed analysis for the present study include trend percentage of house property price over a period of one year and other simple statistical and mathematical tools such as percentage, average and ratios. Limitations of the Study The study is basically a sample survey research. Therefore, sampling errors are the first and foremost problem of the study. However, maximum effort has been made by the researcher to minimize the sampling errors by properly selecting the sample method and sample units. Another limitation of the study is that it relies heavily on secondary data and data are collected from a web site, though the authenticity of which is highly desired. However, every effort is put by the researcher to make cross check between various connected data and thereby avoids all mistakes and errors. In addition to that whatever be the findings, they can be attributed to the period of the study and therefore any generalization may no longer be valid and acceptable. Conclusion In this chapter, the researcher tries to describe the various fundamental aspects of the present research. Any outside reader can perceive the ideas on the various aspects of research such as research methodology, sample and sampling procedure, data and data collection and so on. The researcher ahs made every attempt to narrate all the details in a simple and logical manner so as to make them comprehensible to all types of readers. References Kothari C. R., 2005, Research Methodology: Methods & Techniques, 2, New Age International London Property Watch, online. Londonpropertywatch.co.uk, viewed March 3, 2009, from Ordinary residential London property market shows signs of movement, 2008, property wire: premier global property news service, viewed March 3, 2009, from Vaus De D.A., 2001, Research Design in Social Research, Edition: illustrated, reprint, 279 pages Webb Merryn Somerset, 2007, 'Is London Property really booming again' Money week, viewed March 3, 2009, from Read More