Decision Support in Real Estate Investment by Portfolio Theory

Quantitative approach is developed for decision making in investments in real estates. The decision making is based on formal model of portfolio theory. The process of decision making is based on definition and solution of a set of portfolio optimization problems. The developed formalization of decision making is illustrated with real data of the real estate market in Bulgaria. The National and regional markets in Bulgariaaare analyzed. Optimal investment solutions in old and/or new real estates are evaluated.