Fuzzy Set-Based Risk Evaluation Model for Real Estate Projects

Abstract

With the rapid development of residential real estate market, risk evaluation has been an important task in the process of project. This paper describes a risk evaluation method for residential real estate projects based on fuzzy set theory which uses linguistic variables and respective fuzzy numbers to evaluate the factors. The primary weights of factors and evaluation of alternatives are determined by applying linguistic variables and fuzzy numbers. The notion of Shapley value is used to determine the global value of each factor in accomplishing the overall objective of the risk evaluation process, so the primary weights are revised, thus the importance of factors can be reflected more precisely. A major advantage of the method is that it allows experts and engineers to express their opinions on project risk evaluation in linguistic variables rather than crisp values. An illustration is presented to demonstrate the application of the method in risk evaluation. The results are consistent with the results calculated by conventional risk evaluation method. The research demonstrates that the method is objective and accurate, and is of an application value in the risk evaluation for residential real estate project.