A Study on Risk Evaluation of Real Estate Project Based on BP Neural Networks

Abstract

The real estate industry is an important sector of the national economy, and its prosperity is important for the healthy development of the national economy. Due to longer development period and occupying more funds, real estate project has many risks. Facing with the temptation of high profits, the investors of real estate project must evaluate the risks scientifically and systematically before making decisions. Most traditional risk evaluation methods still remain at the qualitative statements, and the result of the risk evaluation is always with high subjective and not accurate. BP neural network can be an effective remedy to these shortcomings by non-linear self-organization, self-learning. This paper will introduce the risk evaluation method of real estate project by BP neural network on the base of various risk factors, and establish a neural network model of risk evaluation which can provide scientific and objective basis for decision-makers to make much more correct and scientific decisions and carry out effective risk management.