Risk Analysis Of Real Estate Project Investment

The essay is concerned with project investment risk analysis, in this essay,based on study of project investment risk theory, risk analysis procedures andmethods are illustrated and studied, and internal connection between profit and riskis analyzed.As a kind of investment activity, real estate project investment has its ownunique character. Based on investigation on real estate industry and current industrydevelopment status, systematic method and theory have been introduced in thisessay to prove the necessity and importance of risk management in real estateindustry, which is one of the most important industries in China's economy.Particularly, the essay analyzes risk classification, cause of risks and relatedstrategies, sets up real estate risk evaluation index system and mathematic model,studies multi-risk-plan decision-making method, illustrates application of theories ofrisk avoidment, risk control and risk transfer in real estate industry.Based on real estate investment practice of GDH Real Estate Co. Ltd, riskidentification, risk estimation and risk evaluation methods are used to provide detailanalysis on project risk. Target to the major risk, Break-even point and sensitivitystudy are calculated, expected value of net present value and internal rate of returnare calculated as well, so as to provide evidence for project investment decisionmaking.