Investment strategy and valuation methodology in the real estate sector.

Summary As economic and financial environments are governed by many uncertainties, real estate investment decision-making is becoming increasingly complex.The first chapter begins by introducing the traditional methods of evaluating real estate investment choices. The notion of real options is then introduced through the link between real options and financial options. The second chapter examines the use of real options in the real estate sector, systematically referring to the literature on real options. The third chapter presents analyses of performance measurement and dynamics of returns and volatility in the European and American markets.