<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>An investment policy is suggested about assets on real estate markets. Such analysis recommends investments in non-financial assets and optimization of the results from such decisions. The formalization of the investment policy is based on the portfolio theory for asset allocation. Two main criteria are applied for the decision making: return and risk. The decision support is based on Mean-Variance portfolio model. A dynamical and adaptive investment policy is derived for active portfolio management. Sliding procedure in time with definition and solution of a set of portfolio problems is applied. The decision defines the relative value of the investment to which real estates are to be allocated. The regional real estate markets of six Bulgarian towns, which identify the regions with potential for investments, are compared. The added value of the paper results in development of algorithm for a quantitative analysis of real estate markets, based on portfolio theory.</p>
</abstract>

An investment policy is suggested about assets on real estate markets. Such analysis recommends investments in non-financial assets and optimization of the results from such decisions. The formalization of the investment policy is based on the portfolio theory for asset allocation. Two main criteria are applied for the decision making: return and risk. The decision support is based on Mean-Variance portfolio model. A dynamical and adaptive investment policy is derived for active portfolio management. Sliding procedure in time with definition and solution of a set of portfolio problems is applied. The decision defines the relative value of the investment to which real estates are to be allocated. The regional real estate markets of six Bulgarian towns, which identify the regions with potential for investments, are compared. The added value of the paper results in development of algorithm for a quantitative analysis of real estate markets, based on portfolio theory.

Decision Making in Real Estate: Portfolio Approach

Cybernetics and Information Technologies

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Decision Making in Real Estate: Portfolio Approach"}

An investment policy is suggested about assets on real estate markets. Such analysis recommends investments in non-financial assets and optimization of the...

Decision Making in Real Estate: Portfolio Approach

Published Online: Dec 09, 2021

Page range: 28 - 44

Received: Sep 23, 2021

Accepted: Nov 04, 2021

DOI: https://doi.org/10.2478/cait-2021-0041

Keywords
Decision-making, portfolio theory, portfolio optimization, real estates

© 2021 Todor Stoilov et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Decision Making in Real Estate: Portfolio Approach

Published Online: Dec 09, 2021

Page range: 28 - 44

Received: Sep 23, 2021

Accepted: Nov 04, 2021

DOI: https://doi.org/10.2478/cait-2021-0041

KeywordsDecision-making, portfolio theory, portfolio optimization, real estates

© 2021 Todor Stoilov et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Decision-making, portfolio theory, portfolio optimization, real estates