On the Evaluation System for Real Estate Investment Risks

The financial storm arising from the subprime lending crisis draw the world's attention to the real estate investment management. There is no doubt that this crisis also warns China for its future control on real estate. As the pillar industry of the national economics, the real estate plays a great role in the GDP growth and it owns characters of both high risk and high earning rate. Therefore, the investors face not only the prospect of high earnings, but also the factors arising from all kinds of risks which have the crucial roles in the decisions of investment. Based on the theory of risks management, this paper analyzes the risk factors and then builds up the indexes system by way of Analytical Hierarchy Process assigning the weights for each index, aiming at the quantitative and overall evaluation for the real estate risks.