Multiple Criteria Real Estate Investment Planning: An Integrated AHP – Binary Linear Programming Approach

Investors should consider carefully for real estate before allocating their capitals. A good investment can bring great amount of profit in a short time, or an investment capital that has not been considered carefully can cause capital to be spent on an idle asset. It will be possible for the investor to make a profit by evaluating the available investment options in terms of economic, legal, location and physical factors. A decision model combining 0-1 integer programming and multi-criteria decision-making techniques is proposed in order to choose investment alternatives in this study. In the proposed model multi-criteria assessment of investment alternatives is done by using Analytical Hierarchy Process and obtained priority values are written as the objective function coefficient in the budget-limited investment alternative selection model. An application of investment planning, which contains 10 alternative real estate investments in Ankara, is presented to demonstrate the applicability of the proposed decision model. Obtained results are compared with the results obtained by only considering financial aspects of investment

کلیدواژه ها:

investment planning ، integer programming ، multi-criteria decision making