Value Maximizing Decisions in the Real Estate Market: Real Options Valuation Approach

The real estate market of EU countries has undergone a severe global financial crisis 2008–2009, recovered successfully later, and now experiencing significant uncertainty due to the COVID-19 pandemic event. Significant volatility business is once again evident, just as it was following crisis. paper aims provide case study project by giving insight into Latvian that had been similar economic uncertainty, demonstrate hybrid options valuation (ROV) method adapt investments changing circumstances develop decision-making solution problems during pandemic. provides “step-by-step” ROV application’s methodology in development projects. presented powerful managerial risk management tool for executives projects struggling make investment decisions post-pandemic period. Since any estimation includes assumptions, results should be interpreted perceived approximations only. future works can robust analyses interpretations regarding demand estate, showing quantitatively how competition impact strategic decisions.