Real Estate Investment Risk Analysis And Prevention

With sound and constant development of our country's nationaleconomy, real estate sector is witnessing rapid growth and has graduallybecome one of the pillar industries of national economy. However, due toincompleteness of the real estate market mechanism, misleading effect in realestate investment research and the characteristics of real estate sector in itselfsuch as large investment, long return period, huge benefit etc., in recent years,there are signs of overheated investment in the real estate sector, with bubbleeconomy appearing in some regions, bringing enormous risk losses to realestate investors. Therefore, it is of practical significance to investigate theexisting investment risks in real estate sector.This paper first introduces the definitions and characteristics ofreal estate and real estate investment, probes into the concept and fundamentalcharacteristics of real estate investment risk, analyzes real estate investmentrisks in six aspects such as policy risk, social risk, economic risk, technical risk,natural risk and international risk, introduces the concepts and methods of realestate investment risk identification and compares their advantages anddisadvantages, and finally proposes the relevant effective methods for risktransfer and control, so as to help real estate developers increase their riskprevention ability and sharpen their competitiveness.