If there a method to assess the riskiness of real estate investments at the project level?
If there a method to assess the riskiness of real estate investments at the project level?
The assessment of risk is an essential component of real estate investment analysis. This note outlines a systematic process for analyzing the risk associated with real estate investment at the project level—separate from portfolio-level approaches to risk analysis, asset allocation, and diversification— by taking into account asset-specific characteristics as well as the broad prevailing market forces that affect the expected returns on individual property investments.
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