Study On Investment Estimation Model For Real Estate Development Project

As economic pillar of China, real estate is a highly intensive industry in aspects of capital, resources and labor. the development of real estate get a lot attention because of its important affects on social and economic development. Recent20years is a golden period for real estate development in China.The management problems of real estate are covered up by explosive increase in market of real estate. With the introducing of state macro-control policy gradually, competition increasing and high land prices, the development of real estate and relative industries tend to be more rational. Market speculation has been replaced with the rational investment. The requirement on scientization, systematization and normalization for real estate is more and more high. Studying on basic theory and estimation system of investment of real estate is necessary for guiding investment decision of real estate.Hypothetical Development Method was employed to study on investment estimation method and model establishment of real estate development project. on the basis of data and experience collected from multiple real projects, common cost index of development project were analyzed, price decision methods of projects were summarized, and cash flow statements for projects were built base on development schedule and seals planning. In order to improve its own cash flow and earnings, capital planning and using schedule were studied. Uncertainty analysis method was used for risk prevention and control and profit guarantee. Finance evaluation system and investment estimation model were put forward. The model built in the study was practiced in real projects.Investment profit and risk analysis are main component of project decision for real estate development. Improving accuracy of estimation analysis was beneficial to estimate cost, calculate earnings and quantize risk. The key points and difficulty points during the process of estimation analysis were concluded to build estimation model, improve the accuracy of estimation results and enhance the scientificity of feasibility study report.