Comparative Study On The Investment Decision Making Of Residential, Office And Commercial Real Estate In Beijing

With the growing of affluent population scales in China,the real estate investments have become a tool for the redistribution of wealth.The real estate investment market of China has great potential.Real estate is a kind of the commodities with hedge against inflation and value-added.Different properties types of real estate are all regarded as an investment target.Beijing real estate market and its ubiquitous risk are analyzed.The investment strategy of different types such as residential real estate,office real estate and commercial real estate and industrial real estate is studied.The net present value(NPV) model was modified by the investment characteristics of real estate to give a new NPV model of the real estate investment by which the possibility of real estate investment not only can be predicted,but also reverse deduced selling price meeting the expected rate of return investors.The effectiveness and accuracy of the NPV model was verified through the investment Payback period method and the practical example of Beijing area real.