CM4050 - Directed Research Projects - By Rajesh Matta
CM4050- Directed Research Projects
Faculty: Rajesh Matta
Financial Model for Real Estate Residentail Project
A real estate market analysis is a tool that helps us to gather information regarding financial feasibility in developing a property in a city or district. Real estate market analysis, also known as a comparative market analysis, is an analysis of current market values of properties, comparable to a property you are looking to buy or sell. A real estate market analysis should always be done, whether buying or selling a property or its valuation as it will help to understand the current market, how much similar properties are worth, and whether it is an investment worthy property.
Real estate as an investment class is very different from other investment classes. This is the reason that the modeling skills required for real estate modeling are also very different. For the purpose of financial modeling, real estate is defined as any property which is owned by a group of people and sold out to a different group of people. Self-occupied properties are generally beyond the realm of financial modeling. This is because financial modeling is done by corporations who are in the business of selling residential properties. People buying residential properties generally do not require elaborate financial models.