Real estate investments are characterized as being capital intensive, low in liquidity and slow in payback while suffering from several uncertainties regarding demand, sale price/m2 , land cost, etc. that increase the risk perceived by investors. Several options such as information acquisition, deferral and abandonment of the project are usual in the sector that, if properly managed, may increase the value of the investment and reduce its risk exposure. A residential housing development, however, is not usually built in a single phase but as a series of sequential decisions . This is a way to diversify risk since uncertainty during the first launch is higher than in the later ones, and thus the corresponding market price is considerably lower in the initial phasethan in subsequent ones. This corresponds to the sequential strategy, where risks are faced in sequence with relatively smaller increments at every phase of the project, but at the expense of relatively higher construction costs. In sequential strategy, the initial outflow is lower than in the simultaneous case and the expected inflows of previous phases may finance subsequent ones. Before the first phase, the property developer analyzes diverse information relative to market potential, target consumer, revenue per-capita, price levels, empty lots, unsold units, etc. in order to maximize the project's value. But it is only after the first phase when the investor obtains relevant information about the housing investment, either for future expansions or development of the potential local market. It is very important to do the economic base analysis in assessing potential real estate investment, because market rents for properties depend on the economic base, as well as on the supply and demand for space of tenants. Based on the information's you are required to answer the following 1.Critically evaluate how market forces affect both the supply and demand for space and how these factors affect the real estate investment with suitable example and explain with the help of a graph. ( 3 pages) 2. Evaluate how the changes in the market rental rate due to changes in supply and demand can affect the income potential of a possible investment as well as the volatility in income. ( 4 pages) 3.Evaluate the factors that motivate the investors to make an equity investment in incomeproperties and various investment styles used by Real Estate Investors. ( 5 pages)

plz write as a report