Risk Analysis in the Process of Real Estate Enterprise Project Investment

Abstract

Real estate investment is a risky business. There are numerous risk factors exist in the investment process, and most of them are varied and changeable, such as the change of market supply and demand, policy adjustment, and the change of interest rate, all these factors impose direct influence on the success of the investment. The risk management standards of real estate enterprises in China are still at relative low level, which lack the risk management to the whole process of the project, and also there exist problem as inadequate market research, excessive depend on bank, ineffective management, and inadequate brand awareness. This paper evaluates the risk with Fuzzy Comprehensive Evaluation method and puts forward the detailed prevention strategies towards these risks through analyzing the risk factors in the whole investment stage of decision-making, preparatory construction, construction, and sale. The real estate enterprises should take the quality management from the beginning to the end of the project, and do a solid feasibility study of project . They can also buy insurance, use hedge and hedging method to reduce or transfer the investment risk. This paper is aimed to provide reference to the administrator to make the decision more reasonable and scientific.