Real estate investment portfolio decision-making - Under the risk and uncertainty

The paper is devoted for systemic analysis of decision-making principles when altogether with mean-variance portfolio scheme the idea of adequate for stochastic nature of investment efficiency portfolio is used. The main concepts related to the real estate investment process, evaluation of real estate investment environment, investment factors and goals are discussed and interpreted for the practical needs of management. The real estate investment is treated as main factors of the development; its stages are analysed and structured for projecting and implementation real estate development strategies. The real estate market situation as well as way and instrumentals for its development are discussed in the paper. An investment portfolio is used as innovative and constructive instrument for real estate investment decision making under the risk and uncertainty as well a suitable means for multi criteria decisions in development management. The ideas presented in the paper are illustrated by construction and selection of the real estate investments' portfolio in Lithuanian capital. The presumptions of the stochastic nature of predictive parameters were made.