Abstract:
lnvcstmcnt in commercial property development is an important component of investment
portfolios of the government. individuals. many companies of different size. and lending
institutions. Property development is a risky business. There are many areas for
uncertainties. such as construction cost. time. unexpected competition. loss of key tenants.
unexpected regulations so on (Rollo. 2(01). With the mistakes that can be made due to
these uncertainties investment analysis is a complex and serious problem faced by such
investors. usually requiring distinct approaches and proper tools according to the nature
and complexity of the operations. There is a number of investment analysis methods and
financial tools used in the industry. but each of them focuses on different factors and has
its limitations (Rollo. 200 l: Ye S & Tiong R. L.K. 20(0). According to the nature of the
property development business that is build & sold or build & hold. investor's objectives
\\ ill determine Ole choice of the analysis tools. Investment analysis is more closely feinted
to thc market behaviour because the objective of capital investment in the private sector is
generally for profit maximization within a specific time frame rather than benefit-cost
analy.sis and economic analy.sis.
