Application Of Real Options To The Real Estate Project Investment Decisions And Evaluations

To research the traditional methods to evaluate real estate investment at the beginning this paper, there are many defects in the traditional research methods of assessment, so it will be introduced the real options to the Real Estate Project Investment Decisions and Evaluations.This paper use the real options method to study what options are possible in real estate real estate investment process, and how to quantify the value of real options in real estate policy analysis and evaluation process, to reflect the real value of a real estate investment project. Use the real options methods to study real estate investment decisions, which can reinforce the uncertainties of real estate investment process, can reveal fully the effect of real options in the real estate investment policy analysis and evaluation, can improve the investment real estate investor to consider the invest scale > opportunities and objectives flexibly, can prompt they to grasp the good prospects of real estate to invest, to avoid the shortage of the traditional projects policy analysis and evaluation, to increase the rationality of real estate investment decisions, to reduce and prevent the decision mistakes, improve the efficiency of investment decisions.Through analysising the development process and characteristics of real estate, I can research the conclusion as following: First, there are uncertainties in the real estate development process, which make the real estate developers have different options; secondly, there are different real options in the different stages of the real estate development; in the final, this paper use the real options methods to study real estate investment decisions, to quantify the value of real options in real estate policy analysis and evaluation process, to reflect the real value of a real estate investment project.This paper's possible innovation is trying to put the theories of real options in the real estate investment projects decisions, to reflect the real value of a real estate investment project.