The Grey Incidence Analysis Of Real Estate Investment Risk Factors

Real estate has experienced high-speed development along with market economy development and resident life-level great improvement in our country. It has been becoming very important industry of our national economy and also a hot consuming-point that Chinese especially pay attention to. Real estate is characterized by capital intensity, high risk. To lead the decision of the nation and Chinese people it requires us to have an especially applied theory in practice to analyze it quantitatively and qualitatively. First of all, this paper is an attempt to discuss the meaning of the real estate and its investment, to analyze its current situations and its market prospect. Secondly, this paper has discussed the definition, basic characteristics of real estate investment risk, and recognized the various risks of the real estate investment. Thirdly, in the Grey System Theory which is an efficient tool for those problems, which lack enough information or lie in an uncertain condition, the author discusses the principle and method of Grey Incidence Analysis .On this basis, this paper analyzes the risk of the real estate investment in the Grey Incidence Analysis, so the primary and secondary relations about the respective factors are determined. Finally, the author advocates the corresponding risk management objectives, in order to enforce the ability of investing risk management and the ability of avoiding and resolving risk ,and to enhance the competition among the real estate investors.