scholarly journals Optimization of Tourism Real Estate Development Project Based on Option Premium Model

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Donglei Ying
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Real Option ◽  
Investment Decision ◽  
Case Analysis ◽  
Distribution Model ◽  
The Real ◽  
Investment Decision Making ◽  
Real Estate Project ◽  
Option Model

Compared with that of traditional housing real estate, the development of tourism real estate is time-consuming, complex, and irreversible. It is hard to guide investment decision-making on tourism real estate with the conventional discount cash flow (DCF) method. This paper aims to demonstrate that the real option method can improve and optimize the investment decision-making on tourism real estate. Through case analysis, the real option model, i.e., the classic American real option model, and binary tree value distribution model were adopted to analyze the factors affecting the real option of tourism real estate, optimize the development sequence of tourism real estate project, and demonstrate the phased development value of tourism real state, thereby enhancing the development value of tourism real estate projects. The case analysis proves that tourism real estate investment is fully consistent with real option in the uncertain spatiotemporal attributes: uncertainty, irreversibility, and timeliness. Therefore, tourism real estate project carries obvious features of real option. The decision-making by the real option model is much more scientific and superior than that by the conventional DCF method. Since the application of real option theory has been emphasizing housing real estate over tourism real estate, the research results enrich the theory on real option-based investment decision-making for real estate and expand the application scope of real option.

A real option model for geothermal heating investment decision making: Considering carbon trading and resource taxes

Energy ◽  
2019 ◽  
Vol 189 ◽  
pp. 116252 ◽  
Author(s):  
Shiwei Yu ◽  
Zhenxi Li ◽  
Yi-Ming Wei ◽  
Lancui Liu
Keyword(s):  
Decision Making ◽  
Real Option ◽  
Investment Decision ◽  
Carbon Trading ◽  
Geothermal Heating ◽  
Investment Decision Making ◽  
Option Model

A Real Option Model Suitable for Real Estate Project Investment Decision

2011 ◽  
Vol 225-226 ◽  
pp. 234-238
Author(s):  
Xiao Ling Ke ◽  
Feng Qin Diao ◽  
Ke Jun Zhu
Keyword(s):  
Real Estate ◽  
Real Option ◽  
Investment Decision ◽  
House Price ◽  
High Sensitivity ◽  
Project Investment ◽  
Real Estate Investment ◽  
Real Estate Project ◽  
Option Model ◽  
Flexible Management

Real estate investment is distinctively different from others with its high input capital, long period of recycling, huge fluctuation of house price and high sensitivity to other factors. The traditional decision method could not make a rational judgment of the flexible management value in real estate project investment. With regards to the policy and market features of real estate investment in China, a real option model suitable for real estate project investment decision under high uncertainty in China is constructed. At last, a case of a real estate company is studied to test the real estate investment decision model.

Applied Research of Composite Weights – TOPSIS Method in Real Estate Investment Decision

2013 ◽  
Vol 711 ◽  
pp. 452-457
Author(s):  
Yong Ge Xu ◽  
Yang Fu
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Evaluation Method ◽  
Investment Decision ◽  
Ideal Point ◽  
Real Estate Investment ◽  
The Real ◽  
The Real Estate ◽  
Multi Objective ◽  
Investment Decision Making

According to the shortage of the method in real estate investment decision, in order to supplement the deficiency of this one.this paper on the basis of comprehensive consideration of Effects of various factors of real estate project decision, this paper constructs the real estate investment decision-making multi-objective planning evaluation model.Into composite weights,determined by weightthrough the subjective evaluation method combined with the objective evaluation method,and by using the ideal point method (TOPSIS) to evaluate the real estate investment decision-making. This kind of method in view of the present real estate investment decision method is the present situation of the lack of certain to give support and complement, because real estate investment decision is a multi-objective process, so the method is introduced in this paper the method will be more close to the actual situation. Finally, combining with an example, this method is feasible and simple and practical, scientific and reasonable.

scholarly journals An Investigation of Real Estate Investment Decision-Making Practices

2008 ◽  
Vol 11 (1) ◽  
pp. 29-40 ◽  
Author(s):  
Edward Farragher ◽  
Arline California
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Investment Decision ◽  
Real Estate Investment ◽  
Investment Decision Making

scholarly journals The embeddedness of sustainability in real estate investment decision-making

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cath Jackson ◽  
Allison Orr
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Investment Decision ◽  
Qualitative Approach ◽  
Real Estate Investment ◽  
Content Type ◽  
Potential Barriers ◽  
Fund Managers ◽  
Investment Decision Making ◽  
Barriers To Implementation

Purpose The importance of real estate’s sustainability rating has increased significantly. Studies undertaken in 2007 and 2016 show that, at acquisition, the rating rose from 7th to 3rd most important attribute. This shift in priorities parallels the RICS embracing the 10 principles of the UN Global Compact (RICS, 2015). However, while sustainability value premia appear common in some international markets, the picture is mixed and drivers and mechanisms lack empirical investigation. The literature reveals potential barriers to investors fulfilling both sustainability and financial objectives. The purpose of this study is explore these potential barriers. Design/methodology/approach Focus groups with real estate fund managers, sustainability managers and acquisitions surveyors are undertaken to explore the adoption and implementation of environmental sustainability policies. This reveals a series of barriers to implementation and these are then explored in greater depth through a series of interviews with fund managers. This layered, qualitative approach is designed to provide detailed knowledge of practical and conceptual sustainability issues within the UK real estate market. Findings Key drivers underpinning the adoption of sustainability policies are revealed and barriers to implementation are found to relate to data on investment performance, valuation methodologies and prohibitive capex. Further, the heterogeneous, opaque and slow-moving nature of the market is prohibitive and intervention is encouraged to overcome the lack of financial viability that hinders improvements. Originality/value Research is dominated by highly aggregated quantitative data on sustainability within commercial real estate markets. The qualitative approach used here adds new insights and value to the understanding of the embeddedness of sustainability in real estate investment decision-making.

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