The Investment Decision Analysis Of Real Estate Project In Central Plains Area

After nearly 20 years of rapid development,the real estate industry of China has become the pillar for the growth of the national economy,also the focus points of the economic growth of large cities.In general,the most of real estate enterprises will choose the real estate project in cities with developed economy.In recent years,the housing price in big cities has been soared continuously.The central government has issued some policies to restrain the soaring tendency of housing prices.Thereby the real estate market in large cities has been affected to a certain extent.The competitions between real estate enterprises in the developed cities are getting more and more intense.In order to seek the long-term survival and development,the real estate development enterprises have shifted their investment objectives to the Central Plain Area of China,where with great potential for the real estate development.Because the real estate development involves a large amount of investment,long development period and various risk factors,the present situation of economic development in the Central Plain Area is also different from that of the developed cities,so it is very vital to make the corresponding investment decision plans.This paper focuses on the investment decision making of real estate enterprises in the Central Plain Area of China.First of all,the paper introduces the related theory of investment decision for the real estate project and the related theory of investment risk of real estate industry,as well as several traditional real estate investment decision making methods.Then this paper analyzes the real estate investment environment in the Central Plain Area of China,and combines with the investment risk situation in the Central Plain Area of China to build the decision making indicators suitable for the real estate investment in the Central Plain Area of China,taking the eighteen municipal cities of Henan province as the living example and the two models of CCR and BCC of the data envelopment analysis(DEA)are used to analyze the investment efficiency of real estate projects in each city respectively.Sorting the relative efficiency of input and output thereby determine the optimal investment plan,and then combine with Malmquist productivity index calculation method to dynamically analyze the production variation efficiency of the real estate projects in each municipal city of Henan Province and further demonstrates the feasibility of the investment in this area.At the same time,the reasons for the low efficiency of investment in these cities are analyzed by projection,and the corresponding suggestions for improvement are put forward.Finally,the thesis is summarized and the shortcomings of the research are found out and further research is prospected.This paper uses the constructed investment decision index and combines with the DEA-Malmquist model,carrying out static and dynamic analysis for the relative efficiency value of real estate investment input and output in different cities in the Central Plain Area,so as to offer help for the correct and reasonable investment decision of real estate enterprises in developing the real estate market in the Central Plain Area of China.