Influence Factors and Evaluation of Real Estate Development Projects

Abstract

Real estate development project is a complex process with requirements such as strong demand for funds, high-risk, long payback period, etc. Because the nature of real estate development project, a lot of careful study need to be done in its initial stage. This paper analyzes the present status and characteristics of real estate development project in China, deeply analyzing the influencing factors of real estate development project. Describing expert grades method and makes a comparison of different evaluation methods. At last, this paper gives a use case of expert grading method. The propose is to give enterprises more accurate analysis and evaluation before the real estate development project, in order to make the right decision. Real estate development enterprises are the main participants of the real estate market in China, with the deepening of reform of china's urban housing provision system, personal property purchased replace group property purchased to become the mainstream in property transactions. Urbanization develop quickly, it brought many unknown opportunities and also challenges for real estate development enterprises in China in future. At the macro-economic level, in 2012, china's gross domestic product reached ¥51892.4 billion, the added value of the tertiary industry make up of 44.6% of GDP, at the same time, the added value of the secondary industry make up of 45.3% of GDP, only 0.7 percentage points more than the added value of the tertiary industry (National Bureau of Statistics of the People’ Republic of China 2013) (see Figure 1). The real estate value account for tertiary industry is also rising; it plays a more and more important role in economic development of the tertiary industry and even the entire China. At the micro-economic level, strong demand for funds, high-risk, longer payback period, strong connection, involve many subprojects. Because of all this special factors, speculation behavior is impossible to achieve expected economic