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In real estate valuation it is essential to understand the modelling of the economic potential of the property. The residual value is in many cases the only possible way how to determinate market value of the undeveloped land or property under construction which is important for investors, banks or auditors. The methodology of calculation for resid...
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The explanation of the price and value of real estate is still a big challenge that limits forecasting the market value, and explaining bubbles and crashes in the real estate market. Thus, this paper extends the theory of market equilibrium to redefine the value concept for explaining market behavior in real estate. The demand–supply analysis is us...
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... The input variables are therefore subject to a certain degree of uncertainty (quantified at 5% in the example). However, this (relatively) small uncertainty in the input variables leads to a very large uncertainty in the result due to the unfavourable error propagation of the procedure [25]. In the worst case (underestimation of investments and overestimation of earnings), the total return on investment would be reduced to EUR 50,000 (EUR 9,500,000-EUR 9,450,000). ...
Many local authorities apply public value capture on new developments to cover the costs of additional public services. The development obligations (DO) they apply can be either negotiable (NDO) or non-negotiable (NNDO). This article examines the limits of NDOs by comparing three national case studies according to the basic principles of proportionality, causality, connection, and lack of transparency for developers. Well-developed building land models and a delineation of applicable cost types offer more transparency for the developer and enable the municipal authorities to establish a fairer distribution of burdens based on actual benefit.
... Such properties include restaurants, hotels, cinema etc. (Zrobek et al., 2014). The Residual method is used to assess the market value of undeveloped land or property under construction (Kupec and Dlask, 2020). Residual method of valuation could also be used to estimate the value of properties with redevelopment potentials (whose current use can be changed to something more profitable). ...
Techniques employed in property investment valuation have continued to serve as
an endless discussion topic among academics and professionals in the real estate.
Throughout the discussion, a common thread is a need for property valuers to be
adequately trained on critical valuation techniques, which is necessary for ensuring
that property investment valuations are reliable and compare with other
investment mediums in the investment market. Over the years, real estate students'
training on valuation methodologies has followed two distinct techniques, namely,
conventional and contemporary valuation techniques. This study assesses students'
perception of property valuation techniques in selected tertiary institutions in
Nigeria to identify gaps in knowledge. The study's data was collected through a
survey of all graduating real estate students from two universities and two
polytechnics in South-west, Nigeria. A total of 114 students across the identified
institutions was selected using purposive sampling. Descriptive statistics were
utilised in analysing the data obtained. Analyses are presented for the students ’
level of awareness and understanding of conventional and contemporary property
valuation techniques. The results show that awareness and understanding levels
are higher for conventional valuation techniques with group mean scores of 3.96
and 3.80, respectively. Further analysis on students ’views on the teaching and
learning of property valuation techniques was conducted. The respondents
strongly agreed that practical-based training would promote a better
understanding of property valuation techniques. The study concludes that a
practical-based property valuation curriculum in the Nigerian tertiary institutions is
necessary to equip graduates with the requisite knowledge that aligns with the
needs of the property investment market.
