Real Estate Investment: Return Analysis, Property Comparison, and Scenario Evaluation

Real Estate Investment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................5
Question 3....................................................................................................................................6
Question 4....................................................................................................................................8
Question 5..................................................................................................................................11
Question 6..................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Real estate investment is about to make an investment in the real estate property. This
report will discuss return and different dimension associated with the return such as quarterly
return, total return, annual return and standard deviation of all different property. Analysis will
be done in respect to the rent of the respective property at the location. Different scenario will be
discussed to understand the significance of all different properties in the location. Furthermore,
five year time cash flow will be discussed in this project. Risk involve in the property with the
use of different tactics such as IRR and such like of features. Expected return in all different
scenarios will also discuss in this project.
Question 1
a)
Quarterly income is different in respect to all different property. The quarterly income is
identified as 6035.02, 6265.84, 7217.36, 8440.68 and 8848.39 of the previous years. Capital
value is identified as 391286.65, 392373.56, 412766.66, 458679.48 and 492006.01 of all the
previous five years. Total revenue is spotted as 4.9, 4.73, 5.16, 5.5 and 5.21. All these are the
previous five year total return that is increasing in every single financial year. The real estate
always rise in the market as it involve the price element that keep on increasing. The demand of
the real estate property is always high which is also become one of the reason the value of these
properties are always increasing.
b)
The trend that is identified of the property in the previous five financial year is spotted as
increasing in the market. The value of real estate property is always increasing due to the high
demand in market and also the competition that further increases the price. People are always
keen to invest in any of the real estate property that matches the budget of the stakeholder. In
such a situation the rise in the price trend is spotted in the market. Limassol office space is the
commercial property that contain more value in comparison to residential property. This become
essential for the real estate market that the rice are always increasing due to increased demand in
the sector. The nature of the commercial properties like office spaces which always carry high
demand in market that further increases and rises the price of the proeprty and value of the same
in market (Iacovido and et.al., 2021). In the real estate market the trend is always rising as it
always increases the price and value of the property for the target customer. As the Limassol

office sector are highly in demand for the target customer that support stakeholder to constantly
rise the value of the property in the respective market. In the last five year the property become
more feasible for the business venture which further increase the price of the real estate property
in location. This could further empower the property containing high demand in the market.
c)
The average annual rerun of the property is identified as 376613.4, 402634.65,
427298.97, 468350.94, 504474 and 480677 are the previous return value identified against the
properties in Limassol office sector. The value of the property further affect over the return
capacity of each individual property in the location. The demand always contain the price rise
and the potential increase in the rerun or value that is spotted as an inflow for the shop. Office
spaces always contain high in demand and especially the premium location. The increase
demand of the property and office spaces make the prices more effective for the office space. Te
average annual return are increasing which clearly indication about the increasing demand of the
property in market that could eventually increase the price of the same. Return in respect to any
property is influence with the value of the property and also the location at which the property or
office space is situated. All this further influence the business venture to ask for more value if the
demand is high (Bano and Sehgal, 2019). The demand indicate about the level of option which
business entity is containing at this point in time. All this influence the business venture
considering more demand in market that could further affect over the price and rise in the
property value of the value of rent against the property is hold. The value of the property is
always an increased feature associated with the property. This is spotted as a fact that all such
properties that contain a high in demand which will further increase the value of the property in
market. Demand of property and the property prices are the one that is comprehensive in nature
which empower the venture to increases more value to the property. The value ad standard
deviation is identified of the property is 9782.2, 8325.78, 8748.57, 8799.4, 9304.77 and 8046.62.
All these are the standard deviation of all different years. These contain a difference between the
original value and the mean value of the property.
d)
The value of the property influence the return that owner of the property will get against
the investment in respective property. In case the value of property is increasing this would
certainly improve the possibility for the owner to gain return over the property. IN the last five