Real Estate Portfolio Investment Decision-making Research

Real estate is a industry of high risk and high return.Higher return is the fundamental guarantee for a enterprise’s development,and the lower risk is an important factor that affects the survival of the enterprise.At present,real estate is moving towards pluralistic direction.In order to improve the competitiveness and to reduce risk, most enterprises actively carry out portfolio,including property type investment combination, investment region combination, investment point and investment cycle combination, the main body of investment combination and business model portfolio.The research of domestic investment combination were mainly focus on the securities investment portfolios and insurance portfolio,and less in the field of real estate portfolio.The research focuses on how to choose real estate investment types,how to carry on the portfolio investment, how to dynamically manage portfolio and how to determine the right investment proportion according to the different risk tolerance While enterprises facing wide range of real estate investment options.Based on the information search and the investigation,the essay summarizes the real estate investment characteristics,the risk of the real estate investment, the management of real estate portfolios and the way of investment combination, and improves Markowitz portfolio selection model, making it more suitable for real estate investment and designes the genetic algorithm to solve the model. Finally through the case study, the essay found that a kind of real estate may not increase or decrease in a direction with investors’ attention of the risk.The paper takes a real estate portfolio as the research object for study. In a large number of data collection and market research,and on the basis of using the improved model of the investment portfolio, the research can provide support for investors investment decision.The paper unifies the qualitative and quantitative analysis, to provide a reference for more thorough studies and analyzes on real estate portfolio investment decisions.