
International Journal For Multidisciplinary Research
E-ISSN: 2582-2160
•
Impact Factor: 9.24
A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal
Home
Research Paper
Submit Research Paper
Publication Guidelines
Publication Charges
Upload Documents
Track Status / Pay Fees / Download Publication Certi.
Editors & Reviewers
View All
Join as a Reviewer
Get Membership Certificate
Current Issue
Publication Archive
Conference
Publishing Conf. with IJFMR
Upcoming Conference(s) ↓
WSMCDD-2025
GSMCDD-2025
Conferences Published ↓
ICCE (2025)
RBS:RH-COVID-19 (2023)
ICMRS'23
PIPRDA-2023
Contact Us
Plagiarism is checked by the leading plagiarism checker
Call for Paper
Volume 7 Issue 3
May-June 2025
Indexing Partners



















Enhancing Real Estate Project Feasibility Through Real Option Analysis
Author(s) | Ms. kaviya V, Mrs Anisha J |
---|---|
Country | India |
Abstract | Real estate development projects are often influenced by market uncertainty, long timelines, and changing economic conditions. Traditional evaluation methods, such as Discounted Cash Flow (DCF) analysis, assume fixed future cash flows and may not fully capture the value of strategic flexibility. In this study, a residential real estate project was first evaluated using DCF, which showed that immediate investment was not financially favourable. To better understand the potential for flexibility, a Real Option Analysis (ROA) was applied using a binomial tree framework, focusing on the option to defer investment by one year. This approach helps to assess whether waiting can improve project outcomes under uncertain conditions. Additionally, a limited sensitivity analysis was conducted to observe how factors, such as rental income growth and construction cost changes, could affect the results. Overall, the study highlights how applying ROA offers a more flexible and responsive way to evaluate real estate investments compared to static models |
Keywords | Real Estate, Real Option Analysis, Binomial Analysis, Project Feasibility. |
Field | Business Administration |
Published In | Volume 7, Issue 3, May-June 2025 |
Published On | 2025-05-08 |
DOI | https://doi.org/10.36948/ijfmr.2025.v07i03.43851 |
Short DOI | https://doi.org/g9hskq |
Share this

E-ISSN 2582-2160

CrossRef DOI is assigned to each research paper published in our journal.
IJFMR DOI prefix is
10.36948/ijfmr
Downloads
All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.
