The Application of Real Option Method for Investment Decision of Real Estate Project

摘要

With accelerated marketization process of the real estate, its effect in stimulating and stabilizing the market economy becomes more and more large. Because market development of the real estate is less well-developed, investment manias of real estate prick up the risk of investment. Therefore, the use of scientific decision method which conforms with the regulations of real estate industry has important meaning. The characteristic and pricing model of real options method are analyzed in this paper, and it is introduced into the investment decision of real estate project to discuss advantages of the evaluation method in the real estate investment projects. The real option theory in development project of real estate which is used to modify defects and shortcomings of the NPV method in theory fully embodies the flexibility value of decision makers. Accordingly, investment decision of this kind of project is more scientific and reasonable, and it has not only important theoretical value but also higher guiding significance to actual work. Decision makers view the problem of investment decision of real estate from different aspects and improve the profitability of the project. And the investment risk is reduced to be conducive to operate reasonably development project of real estate.