The Project Of "Beer Squre" Investment Analysis And Evaluation

The industry of real estate is a cornerstone for economy. Since late 1990s, the ever-increasing demand and high return on investments have proliferated investments in real estate and escalated competition accordingly. Real-estate investment, however, is typically in large volume and highly risky. Therefore, a thorough study of an investment project in a scientific manner is crucial for the success of the project. In this dissertation, I will present a broad study on real-estate investment strategies, accompanied by a detailed case study of the Beer Square project at the City of DuJiangYan.I will first briefly introduce the concepts and features of real-estate investment.Then I will present in detail several theories that are important for the analysis and decision making for real-estate investment, including marginal cost and return of scale, CAPM (capital asset pricing model) , risk-return on risk-utility, and time value of money. Based on these general theories and factors specific to real-estate investment, I will describe methods for evaluating real-estate investment projects, with a focus on the dynamic evaluation method and the static one. Details will be given on the calculation of metrics used in these methods as well as the application domain, strength and weakness of the metrics. I will also discuss the risk and uncertainty in real-estate investment.In the second part of this dissertation, I will use the Beer Square project at the City of DuJiangYan as a case study to demonstrate the application of the above methods in practice. I will start with an introduction of the project background, our positioning of the project, progress of the project,, and market survey, and then proceed to calculate all kinds of economical metrics for this project in order to evaluate its risk. Finally, I will conclude with the feasibility of this project.