Real Estate Development Projects, Investment Decision-making Methods To Explore

Facing the increasingly fierce market competition, all real estatecompanies have to consider a chain of questions of life and death — how toevade risks, how to seek largest possible benefit, and how to spare themselvesgreat loss due to unwise investment decisions. All these questions bring aboutthis essay, whose focus is on trying to dig out proper theories and methods ofmulti-purpose real estate investment decision adaptable to our currenteconomic situation so that investors can make their decisions right.This article is an empirical study about the real option apply to realestate investment decision.Contrasting with traditional investment decision method, the realoption which considers the value of time and management flexibility in theprocess of investment is more scientific and rational. On the basis ofclarifying the value forming of real option and analyzing optionalcharacteristic of real estate investment decision, the paper evaluates the valueof waiting option in real estate investment and illustrates its application inpractice through a case analyzing.