Evaluation On Investment Environment Of Real Estate In China

In this era of rapid economic growth in China, it tends to have a fastest growth value-added stage of real estate and also could have a history of making the effect of speculation or over-investment in real estate. Meanwhile, because of the imbalance of our regional economics, China develops like such a situation-the eastern coastal regions has more advantages than the western inland, which brings us a great contract. This shows that the real estate investment has a big imbalance in China. The real estate performs like typical city investment and regional investment. All in all, to a certain extent, it is because most investors and developers lack of the science knowledge and the effective gist to make investment decision. Therefore, it makes the effect of speculation or over-investment in real estate and makes the imbalance of regional real estate investment.In making decision of real estate regional selection, people always traditionally use experience of the price of the real estate to judge whether to invest or not. This method is blindness, and has high-risks. It also lack of the function to direct investment in practice, so it seems insignificance.Based on the basic theories and methods of constitutions of real estate value and evaluation of real estate investment environment, this paper combines qualitative analysis and quantitative analysis to analysis real estate investment environment in China. And it compares the differences of real estate investment environment in China. This paper using qualitative method to analysis the law environment, political environment, and analysis the natural environment, economic environment, infrastructure environment and social and cultural environment. Through Analytic Hierarchy Process (AHP), it computes the weight of those selected factors and chooses the highest factors. Using the newest data and the method of factor analysis to compare the investment environment of 31 Provinces and cities, it draws a conclusion of composite scores and rankings and finds the existing problems. Then discover the advantages and disadvantages between every province and proposes advices to increase the practicability of real estate environment investment evaluation.