Development of Appraisal Model of Real Estate to be Developed using Real Options and Analysis of the Effect of the Optimal Critical Point Influence Factors: Focused on the American Option Model with Infinite Horizon

2019 ◽  
Vol 18 (2) ◽  
pp. 157-191
Author(s):  
KwangChae Seo
Keyword(s):  
Real Estate ◽  
Real Options ◽  
Critical Point ◽  
Infinite Horizon ◽  
Influence Factors ◽  
American Option ◽  
Option Model

Study on the Influence Factors of Real Estate Price Based on Regression Model — The Case of Jilin City

2011 ◽  
Vol 117-119 ◽  
pp. 1547-1551
Author(s):  
Xi Li Tan ◽  
Han Zhou ◽  
Ying Song Xu
Keyword(s):  
Real Estate ◽  
Regression Model ◽  
Influence Factors ◽  
Multiple Linear Regression Model ◽  
Factors Affecting ◽  
The Real Estate ◽  
Real Estate Price ◽  
Spss Software ◽  
Countermeasures And Suggestions ◽  
The Impact

Real estate price has been one of the hottest discussion topics, especially in recent years, it becomes the focus of attention. In this paper, we aim to study the impact of economic factors on real estate price. By multiple linear regression model and SPSS software, we analyze four economic indicators affecting the real estate price of Jilin city, and make some amendments and testings, the conclusions show the consumption level and housing construction area are important factors affecting the price trend. On this basis, we further to give the corresponding countermeasures and suggestions.

Estimation of Risk-Return for Real Estate Investments by Applying Ellwood’s Model and Real Options Analysis: An Application to the Residential Real Estate Market of Naples

2014 ◽  
Vol 651-653 ◽  
pp. 1570-1575 ◽  
Author(s):  
Vincenzo del Giudice ◽  
Alfredo Passeri ◽  
Pierfrancesco de Paola ◽  
Francesca Torrieri
Keyword(s):  
Real Estate ◽  
Real Options ◽  
Financial Analysis ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
Real Options Analysis ◽  
Risk Return ◽  
Real Estate Investments ◽  
Capitalization Rate ◽  
Financial Income

In the present study was developed an application of a model derived from Ellwood’s financial analysis and Real Options Analysis for estimating the risk-return in the residential real estate market of Naples. With the aim of reducing the uncertainty related to the determination of the risk and return for an property investment, starting of real estate investment layout derived from the Ellwood’s model, latter defined by financial income and costs related to the period of property availability, a risk analysis with Real Options Analysis has been implemented, in order to obtain the evolution of the investment value until the year in which it is convenient to recover the initial capital. This model has allowed to determine a capitalization rate for a general area of reference, that it can adapt on further effects of specific factors and intrinsic characteristics of the property being valued. It also allows to define uniquely the investment duration, in terms of availability period of property.

Land Value Evaluation of Real Estate Development Project Based on Grey Correlation Analysis

2013 ◽  
Vol 438-439 ◽  
pp. 1782-1785
Author(s):  
Wei Ran Wang ◽  
Yun Xiu Sai ◽  
Xing Fang
Keyword(s):  
Real Estate ◽  
Correlation Analysis ◽  
Influence Factors ◽  
Development Project ◽  
Real Estate Development ◽  
Land Value ◽  
Analysis Model ◽  
The Real Estate ◽  
Grey Correlation ◽  
Grey Correlation Analysis

The accuracy of land value directly affects the size of the project development profit in real estate development project, more will be related to the project success and failure. According to the characteristics of the real estate development, land prices in the mature real estate, on the basis of influence factors, the grey correlation analysis model is set up by using the value of developed successful plot, to estimate the land value, and combined with examples to provide a reference for scientific decision-making to real estate developers.

scholarly journals Firm Regulation and Profit Sharing: A Real Option Approach

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
Michele Moretto ◽  
Paola Valbonesi
Keyword(s):  
Real Option ◽  
Infinite Horizon ◽  
Profit Sharing ◽  
Price Adjustment ◽  
Recent Experience ◽  
Key Factors ◽  
Real Option Approach ◽  
Option Model ◽  
Utilities Regulation

Abstract To avoid the extremely high profit levels found in the recent experience of public utilities' regulation, some regulators have introduced a profit-sharing (PS) rule that revises prices to the benefit of consumers. However, in order to be successful, a PS rule should satisfy appropriate incentive conditions.In this paper, we study the incentive properties of a second best PS mechanism designed by the regulator to induce a regulated monopolist to divert its "excessive" profits to the customers. In a real option model where a regulated monopolist manages a long-term franchise contract and the regulator has the option to revoke the contract if there is serious welfare loss, we first endogenously derive the welfare maximising PS rule under the verifiability of profits. We then explore the dynamic efficiency of this PS rule under the non-verifiability of profits and study the firm's incentive to comply with it in an infinite-horizon game. Finally, we derive the price adjustment path which follows the adoption of a PS rule in a price cap regulation.We show that the riskiness of the distribution of the firm's future profits and the regulator's cost in revoking the franchise contract are key factors in determining the equilibrium properties of a dynamic PS rule.

scholarly journals A Real Options Model with Games Applied to the Rio de Janeiro Residential Real Estate Market

2019 ◽  
Vol 21 (1) ◽  
pp. 118-135
Author(s):  
Glaudiane Almeida ◽  
Marco Antonio Dias ◽  
Luiz Eduardo Brandão ◽  
Carlos Samanez
Keyword(s):  
Real Estate ◽  
Real Options ◽  
Rio De Janeiro ◽  
Real Estate Market ◽  
Residential Real Estate
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