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Journal articles on the topic 'Real property – Valuation'
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1
Ryska, J., and A. Valder. "Is valuation of property a real science?" Agricultural Economics (Zemědělská ekonomika) 52, No. 3 (February 17, 2012): 123–27. http://dx.doi.org/10.17221/5004-agricecon.
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The evaluation of property is one of the basic human professions that have accompanied the human race ever since money was first used. At the time of the formation of modern science, this discipline was not included among the economic sciences. The stipulation of the value of property was based not only on theoretical knowledge of the economics, knowledge of goods, technology, agriculture and law, but also practical skills, knowledge of markets and the art of correctly assessing the requirements of customers. This situation continued until the end of the last millennium, when the evaluation of property stood apart from official science and was presented as an activity that links science and art and for this reason it was not possible to include it among the scientific disciplines. There is given analysis of value and valuation of property. On the base of philosophical approach to value and process of valuation, it can be stated that Valuation is a science in terms which in modern science have meaning. This would enable surveyors to participate also in the promotion of their profession on the academic floor and thus have more influence on the general opinion of value and its influence on contemporary society.
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Vishwakarma, Urmika. "Analysis on Effect of COVID -19 on Property Valuation in Real Estate Market." International Journal for Research in Applied Science and Engineering Technology 9, no. 12 (December 31, 2021): 1467–73. http://dx.doi.org/10.22214/ijraset.2021.39558.
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Abstract: The valuation of real estate is a central tenet for all businesses. Land and property are factors of production and, as with any other asset, the value of the land flows from the use to which it is put, and that in turn is dependent upon the demand (and supply) for the product that is produced. Valuation, in its simplest form, is the determination of the amount for which the property will transact on a particular date. However, there is a wide range of purposes for which valuations are required. These range from valuations for purchase and sale, transfer, tax assessment, expropriation, inheritance or estate settlement, investment and financing. The objective of the paper is to provide a brief overview of the methods used in real estate valuation. Valuation methods can be grouped as traditional and advanced. The traditional methods are regression models, etc. MRA has been implemented by many researchers to study valuation of real property cite that MRA is possible for coefficient estimates and factor weightings using a large number of actual sale cases. Keywords: Real property, property valuation, multiple regression analysis, SWOT Analysis
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Kucharska-Stasiak, Ewa. "Reproduction of Real Estate Valuation Methodology in Practice. An Attempt at Identifying Sources of Divergences." Real Estate Management and Valuation 22, no. 2 (July 8, 2014): 67–79. http://dx.doi.org/10.2478/remav-2014-0018.
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Abstract The objective of the study is to try and identify the reasons for the detachment of the valuation practice from its methodology. Two methods have been used in the paper: the analysis method and the case study method, under which fourteen property valuation reports posted on websites and two opinions about the property valuation prepared for court purposes in order to detect and identify sources of deviations from the valuation methodology have been analyzed. The study, besides theoretical aspects, includes references to practical application: pointing out directions of changes in legal regulations and national valuation principles, which should help achieve uniformity in interpreting the valuation concept, allowing the reduction of its uncertainty, understood as the uncertainty of a single valuation and uncertainty as the difference between valuations.
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Renigier-Biłozor, Małgorzata, and Maurizio d’Amato. "The Valuation of Hope Value for Real Estate Development." Real Estate Management and Valuation 25, no. 2 (June 27, 2017): 91–101. http://dx.doi.org/10.1515/remav-2017-0016.
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Abstract In the valuation of a property subject to development, the valuer may consider the potential aspect of the value of both land to be improved and a building to be refurbished. These kinds of valuations are complex, especially when a prudent assessment of value is required. In general terms, all properties may have potential development which, in some cases, can be termed “hope”. In particular, uncertainty regarding the change in the legal framework may create expectations as to the uncertain variation of property value in the future. In these cases, it may be necessary to deal with hope value or future value, trying to reach the value of a property subjected to uncertain changes. Hope value is the difference between the existing use value and the price that the market might pay for future transformation. The main aim of the paper is the elaboration of a methodology to determine the hope value. In this work, a real option model for the valuation of hope value in the real estate market will be applied to a small sample of residential properties located in Olsztyn that are subject to possible transformation. The possibility of a transformation may create expectations and may influence the value of the property. Although the applications of these methods to real estate valuation are fairly recent, the International Valuation Standards have included real option theory in the income approach as a valuation method since 2011.
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Kucharska-Stasiak, Ewa, and Sabina Źróbek. "An Attempt To Exemplify The Economic Principles In Real Property Valuation." Real Estate Management and Valuation 23, no. 3 (September 1, 2015): 5–13. http://dx.doi.org/10.1515/remav-2015-0020.
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Abstract The economic theory argues that the value of assets, including the value of real property, is influenced by many factors which determine the behavior of operators engaged in market transactions. The knowledge of basic principles and assumptions which underpin the development of value is essential to understanding the methods and procedures of valuation. The thesis, upon which the authors of this article based their theoretical and practical considerations, is formulated as follows: “The knowledge of economic principles of valuation improves the accuracy of valuation and allows for more appropriate interpretation of its results”. Therefore, these factors should be taken into account by appraisers estimating the value of property. Over a dozen so-called key principles of valuation have been formulated in literature. Among them are the principles of anticipation, change, substitution, supply and demand, competition, balance, highest and best use, conformity, and externalities. It is assumed that the most important principle in the valuation of property is the principle of anticipation. Some of the principles are relevant to all the traditional approaches to determining value, while others apply only to selected approaches e.g., the principle of opportunity cost, which is mainly used in valuations using the income approach. The thesis is supported by research results and an analysis of practical examples.
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d’Amato, Maurizio, and Paola Amoruso. "International Real Estate Review." International Real Estate Review 21, no. 1 (March 31, 2018): 113–43. http://dx.doi.org/10.53383/100257.
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Whilst the property market shows cyclical behaviours, opinions of value based on income approaches assume that there is stable or perpetually growing (or decreasing) income without considering the effects of the property market cycle on leasing contracts. The paper therefore focuses on the application of a valuation method for income producing properties which have a value that is affected by the upturns and downturns of property market cycles. Continuing from the previous works in this area (d¡¦Amato, 2003, d¡¦Amato, 2013; d¡¦Amato, 2015) the income approach method here is applied to the office market in four areas of London. In applying this valuation method, property valuation and time series analysis are integrated. The work provides a general introduction on cyclical capitalization as another family of valuation methodologies based on the income approach and then an application of cyclical capitalization to areas of London which highlight their strength and weakness.
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Hui, Sam K., Alvin Cheung, and Jimmy Pang. "International Real Estate Review." International Real Estate Review 13, no. 1 (April 30, 2010): 1–29. http://dx.doi.org/10.53383/100117.
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We have developed a statistical method for the valuation of residential properties using a hierarchical Bayesian approach, which takes into consideration the unique structure of the Hong Kong property market. Our model is calibrated on a dataset that covers all residential real estate transactions in ten major Hong Kong residential complexes from February 2008 to February 2009. Although parsimonious, our model outperforms other valuation methods that are based on average price-per-square- feet or expert assessments. By providing our model-based valuations online without charge, we hope to improve transparency in the Hong Kong housing market, thus enabling consumers to make better investment decisions.
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Kucharska-Stasiak, Ewa, and Katarzyna Olbińska. "Reflecting Sustainability in Property Valuation - Defining the Problem." Real Estate Management and Valuation 26, no. 2 (June 1, 2018): 60–70. http://dx.doi.org/10.2478/remav-2018-0016.
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Abstract A major topic in discussions about environmental protection is the concept of sustainable development utilizing the economic criteria enhanced by environmental, social and ethical aspects. The concept inspired a new approach to construction and paved the way for the idea of sustainable buildings. Sustainable buildings are expected to offer economic benefits to their owners and tenants that should be reflected in property values. The authors test a hypothesis that the real estate market in Poland still fails to incorporate sustainability in property valuation. The article seeks evidence in support of this hypothesis, as well as attempting to find out why the market does not pay a premium for sustainability. To accomplish the purpose of the research, a systematic literature review, an analysis of the pilot studies available in Poland and a preliminary assessment of the ability of valuation methods to reflect sustainability in property valuations are performed. The focus of the research is on the office property market, one of the fastest growing and most modern segments of the real estate market. The conclusion drawn from the research is that, of all respondents surveyed by international studies, Polish developers, property owners, tenants and valuers know the least about sustainable building and that the evidence of the benefits of sustainable building is still unavailable in the Polish real estate market. Such benefits are rather hypothesized to exist and considered theoretically rather than empirically confirmed. It is possible that the reasons for these findings are the short period of research and problems with distinguishing sustainable buildings from conventional ones, which make it difficult for valuers to reflect the benefits of sustainability in valuations. Nevertheless, a new approach to property valuation encompassing environmental, ethical and moral aspects seems necessary. This would encourage sustainable building and green investment strategies. Sustainable valuation would also be an opportunity for the development of the valuation profession.
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Mak, Stephen W., and Yvonne Y. T. Liu. "Real property valuation decision support system." International Journal of Management and Decision Making 8, no. 2/3/4 (2007): 176. http://dx.doi.org/10.1504/ijmdm.2007.012719.
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Kupec, Josef. "Added value of sites suitable for sustainable office development." Organization, Technology and Management in Construction: an International Journal 13, no. 2 (July 1, 2021): 2465–71. http://dx.doi.org/10.2478/otmcj-2021-0026.
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Abstract Valuations of real estate are widely used for various purposes and it relied always upon the financial and other markets. Valuation methodology is based on the operation of the free market economy and the real estate properties. The issue of certified properties is relatively new in the field of real estate valuation and is not sufficiently explored. Certified buildings are preferred by major corporate tenants with international field of activity who often have ethical rules for sustainable development. Therefore, certified properties are attractive to international commercial real estate investors who have higher purchasing power and are willing to pay a higher purchase price. Sustainable property certification is an element affecting the market value of the property. The purpose of this presented research is to quantify the impact of property certification on the value of office properties in Prague and subsequently to determine the impact of sustainability certificates on the market value of the land by using basic valuation techniques. The outcome of the project could be used by real estate valuation experts as a guideline to consider the future project certification and its impact on the land market value.
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Gdakowicz, Anna, and Ewa Putek-Szeląg. "The Use of Statistical Methods for Determining Attribute Weights and the Influence of Attributes on Property Value." Real Estate Management and Valuation 28, no. 4 (December 1, 2020): 33–47. http://dx.doi.org/10.1515/remav-2020-0030.
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AbstractDetermining the impact of individual attributes on the value or price of real estate in business practice poses many problems. One of the solutions to this problem is the use of statistical methods. The article proposes correlation coefficients (and their partial modifications) that can be used to determine the impact of selected features on the value of real estate. In addition, several procedures were taken into account for the factors in further calculations, using different methods for determining weights. Empirical verification of the proposed solutions was based on the mass valuation of land properties. The obtained results were compared with valuations developed by property appraisers and valuation errors were calculated. Based on valuation errors, the proposed methods of calculation procedures were ranged, indicating those which provide results closest to the individual valuations carried out by property appraisers.
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Tymoshchyk, L. "Property Valuation in the Property Management System: Analysis of Conceptual Problems." Modern Economics 24, no. 1 (December 16, 2020): 194–99. http://dx.doi.org/10.31521/modecon.v24(2020)-31.
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Introduction. Today, significant property assets in the form of real estate and land are in the possession of Ukraine. To make a profit from property requires an effective management system, an important tool of which is the assessment of property value. Purpose. The main purpose of the article is to consider the obstacles to the development of property valuation as one of the tools of property management. The article also explores the peculiarities of the development of Ukrainian legislation in the field of property valuation and management, presents general recommendations for the development of the property procedure. Results. The author identifies eleven conceptual problems of use and development of property valuation in the property management system. Among the most important is the lack of detailed legislative and procedural support of the property valuation procedure, in particular – the lack of a register of state property (both functionally real estate and unfinished), insufficient regulation of land and property legislation. Insufficient guarantees of observance of the rights to possession and use of property (real estate) are considered as obstacles to the growth of the role of small and medium business, and as a negative trend in the lives of people in the temporarily occupied territory. The influence on the development of property valuation of such market characteristics as competitiveness and lack of free competition, which contribute to the determination of the final value of property such factors as monopoly and government decisions, is analyzed. Conclusions. The process of property valuation occupies a significant place in the process of effective property management, but in our country this procedure is still developing. The author emphasizes that a fair and objective assessment requires, above all, respect for constitutional rights and guarantees in the field of property. The second priority area for improvement is the formation of an integrated and complete legal framework in the areas of property management and land law, the creation of a complete register of all state-owned real estate. It is recommended to pay attention to the need to study the impact of the market on the final valuation. Keywords: property valuation; property management valuation; property valuation mechanism; small business; real estate use right.
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Gdakowicz, Anna, Ewa Putek-Szeląg, and Wojciech Kuźmiński. "Examination of the effects of non-measurable explanatory variables on the value of real estate in the process of mass valuation of land." Przegląd Statystyczny 66, no. 3 (March 17, 2020): 214–27. http://dx.doi.org/10.5604/01.3001.0013.9130.
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The paper proposes a solution to the problem of how to introduce non- -measurable features (attributes) of a property that significantly affect its value to the process of its valuation. The authors adopt two measures enabling them to study the influence of order features on the value of property, the Spearman rank coefficients and standardized ßk coefficients, and proceed to check their efficiency, applying an algorithm of mass property valuation (SAMWN) to the sample of 567 plots of land in Szczecin designated for housing purposes. The results thus obtained are then compared with the valuations of these plots of land performed by property appraisers. The study demonstrates that lower valuation errors are obtained when using standardized ßk coefficients than the Spearman rank coefficients.
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Cheung, Simon K. C. "International Real Estate Review." International Real Estate Review 20, no. 2 (June 30, 2017): 221–50. http://dx.doi.org/10.53383/100242.
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A special type of spatial dependence model has been developed for the valuation of residential property by using a Bayesian approach which takes into account the unique attributes of Hong Kong property. Inspired by an approach that bases transactions on nearest neighbor estimation, the current model has fine-tuned the spatial dependence method of deriving value from the transactions of the real estate closest in proximity by factoring in differences in structural and auxiliary attributes for more precise property valuation. The model is established on a dataset that covers all residential real estate transactions in a new town in Hong Kong during a given period of time. This model excels other valuation methods with its unique reference to attribute differences, which may impact the valuation results of properties in close vicinity. With this calibration method, we hope to improve the accuracy of real estate appraisals, thus enabling potential homeowners, lenders and investors to make better informed decisions.
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Ataguba, Joseph Obaje. "Alternative Real Value Hybrid Model for the Valuation of Reversionary Leasehold Investment Properties." Real Estate Management and Valuation 28, no. 4 (December 1, 2020): 63–80. http://dx.doi.org/10.1515/remav-2020-0032.
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AbstractThis study is a design of an alternative real value hybrid model for the valuation of reversionary leasehold investment properties characterized by divergence in the revision period of sub-rent and head rent respectively. The development of this model commenced with a synthesis of inputs for the modified rational- and real value hybrid models, and the derivation of an equivalent cash flow multiplier for terminal investments. With exception of the generic real value model, term incomes across all other contemporary models including the alternative real value hybrid model were discounted using the equated yield. The discounted reversionary cash flows in the valuation template associated with the alternative real value hybrid model appears identical to that in the generic real value model, while exhibiting itself as a surrogate reversionary income multiplier for the modified rational, and the real value/short-cut DCF models respectively. The alternative real value hybrid model was validated as capable of producing valuations that are identical to those churned out from all the existing contemporary models for the valuation of this category of reversionary leasehold investment property. The study is a novel attempt towards redesigning the modified rational model of leasehold investment property valuation and according it a real value perspective.
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Jafary, P., D. Shojaei, A. Rajabifard, and T. Ngo. "A FRAMEWORK TO INTEGRATE BIM WITH ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING-BASED PROPERTY VALUATION METHODS." ISPRS Annals of the Photogrammetry, Remote Sensing and Spatial Information Sciences X-4/W2-2022 (October 14, 2022): 129–36. http://dx.doi.org/10.5194/isprs-annals-x-4-w2-2022-129-2022.
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Abstract. Property valuation is of extreme importance since variations in the real estate market enormously influence people’s life. The main goal of Automated Valuation Models (AVMs) is to calculate the market value of a large number of properties with an acceptable accuracy. The Hedonic Price Model (HPM) is the most widely used AVM for the valuation purposes. Despite its simplicity, ease of use and straightforwardness, HPM lacks the capability to address the non-linear relationships between different value-related factors. Hence, researchers have developed other state-of-the-art property valuation methods based on the advancements in computer science including Artificial Intelligence (AI), Machine Learning (ML), computer vision and deep learning. Design, development, and validation of such advanced AVMs require establishment of a database including data on the different influential factors. Two types of factors are used in the literature, including textual and visual features. Reliable data sources are required for the implementation of AVMs since the accuracy of the provided valuations is definitely linked to the reliability of the used real estate databases. Building Information Modelling (BIM) provides precise information on different components of properties. Although some scholars have tried to use BIM for property valuation, BIM benefits in different valuation procedures have not been fully investigated. Hence, this paper provides a framework that consider BIM capabilities to be integrated with different stages and processes in property valuation, especially in relation to advanced AVMs based on AI and ML.
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Volchek, R. "DISCUSSION ASPECTS OF PROPERTY VALUATION FOR TAX PURPOSES." Аграрний вісник Причорномор'я, no. 94 (December 25, 2019): 64–75. http://dx.doi.org/10.37000/abbsl.2019.94.11.
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The author's vision on the process of estimating the value of real estate objects for the purposes of taxation is given. It is established, that the current norms of valuation of property for taxation purposes, established by the main regulator of valuation activity in Ukraine − the State Property Fund of Ukraine, deprive transparency the process of valuation of property in our state, and offset personal accounting judgments when assessing real estate. Opacity and distortion of the current norms of normative legal acts regulating the process of valuation of property and property rights in Ukraine, as well as the norms of the International Financial Reporting Standards (further − IFRS) 13 «Fair Value Measurement» during the valuation of real estate objects, consists, according our opinion, representatives of the State Property Fund of Ukraine during the approval of property valuation reports for tax purposes are based on the estimated value of the objects, which should be determined solely on the basis of the prices of real estate offers and solely by means of a comparative approach. But, IFRS 13 «Fair Value Measurement» and National Standard 1 «General Principles of Valuation of Property and Property Rights» demand to determine the value of objects of evaluation in three methods: costly, cost-effective and comparative. Recommendations are introduced, implementation of which will allow to observe the transparency and correctness of determining the value of property for tax purposes.
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Ataguba, Joseph Obaje. "A Modified UK Real Value/Short-Cut DCF Model for the Valuation of a Nigerian Sub-Leased Commercial Property." International Journal of Real Estate Studies 14, no. 2 (September 2, 2021): 98–120. http://dx.doi.org/10.11113/intrest.v14n2.54.
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A UK real value/short-cut DCF model that addresses the valuation of geared profit rents generated by sub-let commercial investment properties especially in climes with nationalized land policy has been elusive. This study examines the modification of the extant UK real value/short-cut DCF model for the valuation of head-leased occupancy rights with fixed and non-revisable ground rents pursuant to the provisions of the Nigeria Land Use Act. The model is developed by blending the inputs of the modified rational model with that of the Crosby's real value/short-cut DCF model leading to a valuation model that appears simplified compared to the existing UK contemporary value models. The gearing effect for the hypothetical case of sub-let head-lease occupancy right in Nigeria is manifested as having a diminishing impact of fixed ground rent on profit rent calculation. For the valuation case study involving this hypothetical head-leased occupancy right in Nigeria, it was found that the modified UK real value/short-cut DCF model produced valuation that is identical to those churned out from the full DCF, modified rational, and Crosby's real value/short-cut DCF models. For the same hypothetical case study, less than 1% difference is observed between valuations from the all risks real yield (ARRY) model, which evolved in New Zealand and the valuation produced from the modified UK real value/short-cut DCF model, thereby validating all methods against each other. In consonance with the International Valuation Standards pertaining to income valuation approach, a sustained pedagogy of emerging real value models alongside the extant nominal valuation models is suggested as a way forward. Nevertheless, the modified UK real value/short-cut DCF model is recommended as an alternative to the extant variants of real value and explicit DCF techniques for the valuation of sub-let head-lease occupancy rights with fixed/non-revisable ground rents payable especially in climes with nationalized land policy.
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Malienė, Vida, Edmundas K. Zavadskas, Artūras Kaklauskas, and Saulius Raslanas. "PROPERTY VALUATION BY MULTIPLE CRITERIA METHODS/NEKILNOJAMOJO TURTO VERTINIMAS DAUGIAKRITERINIU METODU." JOURNAL OF CIVIL ENGINEERING AND MANAGEMENT 5, no. 4 (August 31, 1999): 272–84. http://dx.doi.org/10.3846/13921525.1999.10531475.
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Multiple criteria valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income of use. They are used in valuating various property characteristics, ie its location or obsolescence degree. In Germany, however, multiple criteria valuation technique refers to a separate group of property valuation methods applied when market data are unavailable or insufficient (ie purchasing, selling or renting prices are not known). The above methods have been used for real estate valuation since 1976. Dr. H. E. Auerhammer [1] was the first to apply these approaches to solving real estate valuation problem caused by the scarcity of market data. These methods supplemented with systems of criteria developed by other authors were later applied to particular cases when three major commonly used property valuation methods could not be applied. Thus, K. Gablenz [2] suggests using the method described in assessing plots intended for agriculture, while B. Bischoff [3] offers to use it for determining the investments into plots. R. Vogel [4] thinks that the approach may be used for determining the approximate value of land, whereas G. Sommer and P. Zimmermann [5] and Piehler [6] developed a system of criteria to be used as a part of the method described in determining the differences between the value of quantitative and qualitative characteristics of an object and its market value. T. Gierardy and R. Moeckel [7] described the advantages and disadvantages of methods based on multiple criteria analysis. The above methods are widely used in Germany for property valuation, the peak of their application being associated with the unification of East and West Germany in 1990 [8]. Multiple criteria analysis presented in this paper for property valuation may be used to the advantage of various interested parties (see Fig 1). The representatives of various parties including appraisers, buyers, sellers and investors may use it for their particular purposes: appraiser may apply this method to real estate value analysis for determining the market, use and other values of real estate being mortgaged, ensured, privatised, divided or nationalised; investor may rely on it for more efficient use of this property; buyer may use it for choosing property which would satisfy his personal needs to the best advantage; seller has to determine the market price of his property that would ensure its competitive ability on the market. To satisfy all the needs described multiple criteria valuation method presented in the paper may be successfully used. To show its efficiency the solution of a sample problem, representing a real case is provided.
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Grosz, Gabriella, Evelyn Herbert, Gábor Izsák, and Katinka Szász. "Issues Relating to the Creation of a Central Database to Support Statistical Property Valuations." Financial and Economic Review 20, no. 4 (2021): 86–117. http://dx.doi.org/10.33893/fer.20.4.86117.
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The valuation of real estate collateral is a long-established area of the lending process that is currently undergoing increasingly dynamic development and in which the use of statistical valuation methods is becoming more and more common instead of on-site valuations. The legal conditions for this have been created by amendments to European and national legislation in the past year, but for the method to be truly widely used and operational and to ensure the accuracy of the resulting valuations, access to detailed, accurate, up-to-date and regularly checked data on real estate must be also created. As the databases currently available for Hungarian real estate are very fragmented, in our study, we propose to create a central database that would provide a uniform, up-to-date set of data, by harmonising the existing separate databases. Such a database would help create a level playing field in the market and automate data transfer in a cost-effective, fast and reliable manner. This would greatly facilitate the uptake of statistical valuation methods, supporting the further spread of digitalisation, increasing banking competition, speeding up administration and reducing the cost of lending for all parties.
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Tajani, Francesco, Pierluigi Morano, and Klimis Ntalianis. "Automated valuation models for real estate portfolios." Journal of Property Investment & Finance 36, no. 4 (July 2, 2018): 324–47. http://dx.doi.org/10.1108/jpif-10-2017-0067.
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Purpose As regards the assessment of the market values of properties that compose real estate portfolios, the purpose of this paper is to propose and test an automated valuation model. In particular, the method defined allows for providing for objective, reliable and “quick” valuations of the assets in the phases of periodic reviews of the property values. Design/methodology/approach Aiming at both predictive and interpretative purposes, the method, based on multi-objective genetic algorithms to search those model expressions that simultaneously maximize the accuracy of the data and the parsimony of the mathematical functions, is applied to a sample data of office properties characterized by medium and large size, located in the city of Milan (Italy) and sold in the period between 2004 and 2015. Findings The model obtained could be an integration of the canonical methodologies (market approach, income approach, cost approach) implemented in the assessment of the market values of properties, so as to provide an additional tool to verify the results. In particular, the inclusion of economic variables in the model is consistent with the need to reiterate the valuations, contextualizing them to the locational characteristics and to the current property cycle phase in the specific area. Practical implications The model can be applied by all the operators involved in the periodic reviews of the values of property portfolios: from real estate funds’ insiders, in order to monitor the values obtained through the canonical approaches, to the public institutions, such as the revenue agencies, in order to ensure the fair payment of the taxes through the updating values of the properties according to the actual and current market trends. Originality/value The method proposed can be a valid support for all public and private entities that hold significant property assets and that, for various reasons (periodic reviews of the balance sheets, sales, enhancement, investment, etc.), require cyclical updated values of the properties. The automated valuation model developed can be used for the assessment of “comparison” values with the estimates values obtained by other assessment techniques, in order to ensure a further monitoring tool of the results from the subjects involved.
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d’Amato, Maurizio. "International Real Estate Review." International Real Estate Review 10, no. 2 (December 31, 2007): 42–65. http://dx.doi.org/10.53383/100083.
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This paper focuses on the problem of applying rough set theory to mass appraisal. This methodology was first introduced by a Polish mathematician, and has been applied recently as an automated valuation methodology by the author. The method allows the appraiser to estimate a property without defining econometric modeling, although it does not give any quantitative estimation of marginal prices. In a previous paper by the author, data were organized into classes prior to the valuation process, allowing for the if-then, or right “rule” for each property class to be defined. In that work, the relationship between property and class of valued was said to be dichotomic.
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SEAMAN, RONALD M. "Valuation Of Undivided Interests In Real Property." Business Valuation Review 16, no. 1 (March 1997): 32–40. http://dx.doi.org/10.5791/0882-2875-16.1.32.
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Simons, Robert A., and Jesse Saginor. "International Real Estate Review." International Real Estate Review 13, no. 2 (August 31, 2010): 134–56. http://dx.doi.org/10.53383/100123.
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This research evaluates the effect of leaking underground storage tanks (LUSTs) from gas stations on nearby commercial property when the existing data is incomplete or imperfect. While methodologies such as hedonic regression may be preferred for evaluating the effects of LUSTs on property values, the rigorous data requirements of these methodologies often cannot be met. Contingent valuation analysis is one method that enables estimation of losses when the data available is incomplete. A contingent valuation analysis of real estate professionals in South Carolina and Ohio provides estimates of commercial property losses, which ranges from 0-40%, depending on environmental conditions and proximity to the source. This research has developed a methodology for estimating real estate property value losses when data requirements cannot be fulfilled based on the best available data.
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Komar, Irina. "Features of determining the market value of retail real estate and individual trade related properties during pre-trial evaluation and forensic examination." Real estate: economics, management, no. 1 (May 17, 2021): 20–24. http://dx.doi.org/10.22337/2073-8412-2021-1-20-24.
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The present article deals with the specifics of valuation of retail property and individual trade related properties on the basis of the international experience and as recommended by International Valuation Standards and RICS (The Royal Institution of Chartered Surveyors (Great Britain)) valuation standards (Red Book). The present article is justified as currently Russia lacks a standard, uniform for the valuers or legal experts, to be used for the purposes of valuation of similar subjects. At the same time, methodical literature is insufficient while there are numerous property disputes that call for pre-court valuations and expert evidence of valuation of such subjects, including numerous litigations arising out of bankruptcy or establishing cadaster value to the amount of market value. The author reviews the existing approaches to valuation of real estate in accordance with both the international and national standards and awards professional recommendations pertaining to the use of the income approach to value retail real properties and individual trade related properties. The definitions and metrics of the above real properties’ groups are described separately. Also, the author provides guidelines for inquiry of the documents and information necessary for the acquisition of the data to be used in the course of valuation and expert evidence. All pricing factors are described in detail in the present article against the examples of retail real properties and individual trade related properties (say, hotel) and explanation of their effect on the market value in case the income approach is applied is provided.
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Abidoye, Rotimi Boluwatife, Ma Junge, Terence Y. M. Lam, Tunbosun Biodun Oyedokun, and Malvern Leonard Tipping. "Property valuation methods in practice: evidence from Australia." Property Management 37, no. 5 (October 21, 2019): 701–18. http://dx.doi.org/10.1108/pm-04-2019-0018.
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Purpose Improving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations, it has been argued that the use of technology-based advanced valuation methods can help to narrow the gap between asset valuations and actual sale prices. The purpose of this paper is to investigate the property valuation methods being adopted by Australian valuers and the factors influencing their level of awareness and adoption of the methods. Design/methodology/approach An online questionnaire survey was conducted to elicit information from valuers practising in Australia. They were asked to indicate their level of awareness and adoption of the different property valuation methods. Their response was analysed using frequency distribution, χ2 test and mean score ranking. Findings The results show that the traditional methods of valuation, namely, comparative, investment and residual, are the most adopted methods by the Australian valuers, while advanced valuation methods are seldom applied in practice. The results confirm that professional bodies, sector of practice and educational institutions are the three most important drivers of awareness and adoption of the advanced valuation methods. Practical implications There is a need for all the property valuation stakeholders to synergise and transform the property valuation practice in a bid to promote the awareness and adoption of advanced valuation methods, (e.g. hedonic pricing model, artificial neural network, expert system, fuzzy logic system, etc.) among valuers. These are all technology-based methods to improve the efficiency in the prediction process, and the valuer still needs to input reliable transaction data into the systems. Originality/value This study provides a fresh and most recent insight into the current property valuation methods adopted in practice by valuers practising in Australia. It identifies that the advanced valuation methods could supplement the traditional valuation methods to achieve good practice standard for improving the professional valuation practice in Australia so that the valuation profession can meet the industry’s expectations.
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Burada, Cristian Oliviu, and Traian Cristian Demetrescu. "Historical Real Estate Valuation by Cost Approach." Applied Mechanics and Materials 880 (March 2018): 371–76. http://dx.doi.org/10.4028/www.scientific.net/amm.880.371.
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Compared to modern buildings, historical real estate features features that give them a special status: the architectural style of the epoch, the old materials or the built-in building methods, the high rehabilitation costs or the legal restrictions on their intervention. Therefore, in evaluating a historical real estate property, evaluators need to undertake additional, sometimes atypical, steps compared to assessing a modern property. Assessing a historical real estate property by cost has particularities that distinguish it from the assessment of a modern building.
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Baffour Awuah, Kwasi Gyau, Frank Gyamfi-Yeboah, David Proverbs, and Jessica Elizabeth Lamond. "Sources and reliability of property market information for property valuation practice in Ghana." Property Management 35, no. 4 (August 21, 2017): 448–66. http://dx.doi.org/10.1108/pm-05-2016-0019.
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Purpose Adequate reliable property market data are critical to the production of professional and ethical valuations as well as better real estate transaction decision-making. However, the availability of reliable property market information represents a major barrier to improving valuation practices in Ghana and it is regarded as a key challenge. The purpose of this paper is to investigate the sources and reliability of property market information for valuation practice in Ghana. The aim is to provide input into initiatives to address the availability of reliable property market data challenges. Design/methodology/approach A mixed methods research approach is used. The study, thus, relies on a combination of a systematic identification and review of literature, a stakeholder workshop and a questionnaire survey of real estate valuers in Accra, Ghana’s capital city to obtain requisite data to address the aim. Findings The study identifies seven property market data sources used by valuers to obtain market data for valuation practice. These are: valuers own database; public institutions; professional colleagues; property owners; estate developers; estate agents; and the media. However, access to property market information for valuations is a challenge although valuers would like to use reliable market data for their valuations. This is due to incomplete and scattered nature of data often borne out of administrative lapses; non-disclosure of details of property transactions due to confidentiality arrangements and the quest to evade taxes; data integrity concerns; and lack of requisite training and experience especially for estate agents to collect and manage market data. Although professional colleagues is the most used market data source, valuers own databases, was regarded as the most reliable source compared to the media, which was considered as the least reliable source. Research limitations/implications Findings from the study imply a need for the development of a systematic approach to property market data collection and management. This will require practitioners to demonstrate care, consciousness and a set of data collection skills suggesting a need for valuers and estate agents to undergo regular relevant training to develop and enhance their knowledge, skills and capabilities. The establishment of a property market databank to help in the provision of reliable market data along with a suitable market data collection template to ensure effective and efficient data collection are considered essential steps. Originality/value The study makes a significant contribution to the extant knowledge by providing empirical evidence on the frequency of use and the reliability of the various sources of market data. It also provides useful insights for regulators such as the Ghana Institution of Surveyors (GhIS), the Royal Institution of Chartered Surveyors (RICS) and other stakeholders such as the Commonwealth Association of Surveying and Land Economy (CASLE) and the Government to improve the provision of reliable property market information towards developing valuation practice not only in Ghana, but across the Sub-Saharan Africa Region. Also, based on these findings, the study proposes a new property market data collection template and guidelines towards improving the collection of effective property market data. Upon refinement, these could aid valuation practitioners to collect reliable property market data to improve valuation practice.
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Corgel, John. "Property-by-Property Valuation of Publicly Traded Real Estate Firms." Journal of Real Estate Research 14, no. 1 (January 1, 1997): 77–90. http://dx.doi.org/10.1080/10835547.1997.12090889.
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Asres, Habtamu Bishaw. "Causes of Valuation Inaccuracy in Mortgage Lending in Ethiopia." International Journal of Real Estate Studies 17, no. 1 (June 30, 2023): 120–34. http://dx.doi.org/10.11113/intrest.v17n1.262.
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This study aims to add to the scarce empirical literature on mortgage valuation by ranking the variables that make inaccurate mortgage valuations. Given the central role, valuation plays in lending, high valuation inaccuracy leads to major market distortions in real estate with potentially harmful financial system repercussions. Thus, this study is envisioned to investigate the causes of valuation inaccuracy for mortgage purpose in commercial banks in Ethiopia. To achieve this objective, the study employed a convergent parallel mixed design. Data were collected from valuers through questionnaires and interviews using purposive, snowball, and convenience sampling techniques. To investigate the impact of the factors on valuation inaccuracy, an ordinal regression model was used. The study revealed that inappropriate valuation methods, the inadequacy of the market data, and property market imperfection were the most significant predictors. However, there are moderately significant causes which include the characteristics of the property market, valuation regulatory framework, and absence of the valuation standard. Client pressure, ethics, and competence of valuers were insignificant predictors. This paper recommends that the government should establish a government agency that is independent and in charge of valuation regulation, developing legal frameworks, and intervening in the property market. Based on the framework valuers should use an appropriate valuation method. Moreover, there should be an establishment of central databases that valuers relied on.
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Azzam, Mounir, Valerie Graw, Eva Meidler, and Andreas Rienow. "Enhancing Property Valuation in Post-War Recovery: Integrating War-Related Attributes into Real Estate Valuation Practices." Smart Cities 7, no. 4 (July 5, 2024): 1776–801. http://dx.doi.org/10.3390/smartcities7040069.
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In post-war environments, property valuation encounters obstacles stemming from widespread destruction, population displacement, and complex legal frameworks. This study addresses post-war property valuation by integrating war-related considerations into the ISO 19152 Land Administration Domain Model, resulting in a valuation information model for Syria’s post-war landscape, serving as a reference for property valuation in conflict-affected areas. Additionally, property valuation is enhanced through visualization modeling, aiding the comprehension of war-related attributes amidst and following conflict. We utilize data from a field survey of 243 Condominium Units in the Harasta district, Rural Damascus Governorate. These data were collected through quantitative interviews with real estate companies and residents to uncover facts about property prices and war-related conditions. Our quantitative data are analyzed using inferential statistics of mean housing prices to assess the impact of war-related variables on property values during both wartime and post-war periods. The analysis reveals significant fluctuations in prices during wartime, with severely damaged properties experiencing notable declines (about −75%), followed by moderately damaged properties (about −60%). In the post-war phase, rehabilitated properties demonstrate price improvements (1.8% to 22.5%), while others continue to depreciate (−55% to −65%). These insights inform post-war property valuation standards, facilitating sustainable investment during the post-war recovery phase.
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Tymoshchyk, Liliia. "Assessment of the Property of a Territorial Community: Topical Problems and Ways to Solve them." Modern Economics 25, no. 1 (February 23, 2021): 148–52. http://dx.doi.org/10.31521/modecon.v25(2021)-23.
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Annotation. Introduction. One of the trends in the development of the modern real estate market in Ukraine is the gradual growth of the real estate owners, and, accordingly, the change of the real estate management system, in particular, in the field of municipal management. Real estate, as a strategic asset, needs to be managed at a professional level. Therefore, the mechanism of property valuation of territorial communities is perceived as one of the tools of effective property management. Purpose. The purpose of this article is to find and scientifically substantiate the priority areas for improving the effectiveness of property valuation of territorial communities, and analysis related to the mechanism of evaluation of management aspects – goals, approaches, methods and characteristics. Results. The article analyzes the essence of effective management of municipal property – focuses on management goals, the priority of which is the creation of conditions for normal activities, both for each resident and all in general, analyzes the process of determining the effectiveness of municipal management in various fields and its characteristics, methods of evaluating the effectiveness of management. The main provision that guides real estate activities is that real estate development projects should meet the needs of consumers as much as possible. The views of domestic researcher N. Smentina on approaches to assessing the effectiveness of communal property – economic and social. The article provides a detailed substantive analysis of the concept of “real estate” within the complex development and its spatio-temporal characteristics that affect its value. The importance of the characteristic “optimal use of real estate” is determined. The “optimal use of real estate” reveals the conceptual content of the process of assessing the effectiveness of property use. Conclusions. Summing up, property valuation is especially important in the context of increasing the economic benefits from the sale of communal property, but the mechanism of property valuation of territorial communities in Ukrainian legislation still does not determine some specific aspects of municipal property valuation.. Keywords: property; property management; management efficiency; territorial community.
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Źróbek, Sabina, Małgorzata Renigier-Biłozor, and Marek Walacik. "DEFINICJA PRAWNA WARTOŚCI RYNKOWEJ W TEORII I PRAKTYCE WYCENY NIERUCHOMOŚCI W POLSCE." Studia Iuridica, no. 91 (November 12, 2022): 412–30. http://dx.doi.org/10.31338/2544-3135.si.2022-91.23.
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The authors of this paper emphasize the need for an in-depth analysis of the definition of property market value. In Polish law methods of property valuation is regulated predominantly by the Act on real estate management, the Regulation of the Council of Ministers on real estate valuation and preparation of a valuation report, and by two acts on taxation – on civil law transactions and on tax on personal income. It has been shown that the terms used in these regulations, such as “market value”, “price”, “comparable property”, cause interpretational problems. This is evidenced in court ruling, in the literature of the subject, and in the interpretations published by the organizations of professional property valuers. Based on the research results, as well as on the real estate valuation theory and practice, the authors offer recommendations for changes in the legal regulations, restoration of the original rank of professional real estate valuation standards, and the establishment of a new type of value. The rationale behind these proposals is care for quality of valuation and elimination of at least a limited number of appeals against the estimated market value of the properties.
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D’AMATO, Maurizio. "INCOME APPROACH AND PROPERTY MARKET CYCLE." International Journal of Strategic Property Management 19, no. 3 (October 9, 2015): 207–19. http://dx.doi.org/10.3846/1648715x.2015.1048762.
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This paper is focused on a proposed valuation method including real estate market cycle analysis in real estate valuation process. Starting from early works on this field (d'Amato 2003) the work highlight the dangerous gap between academic research on property market cycles and professional practice of property valuation. The danger of this gap comes from the fact that in spite it is well documented that the property market has a “natural” cyclical behaviour, the opinions of value based on income approaches still relies on assumption of a stable or perpetually growing (or decreasing) income. This may be one generating factors of the real estate bubble and the subsequent financial markets crisis experienced recently. This paper offers a general introduction on cyclical capitalization as a further family of valuation methodologies based on income approach. This method includes in the traditional Dividend Discount Model more than one g-factor in order to plot property market cycle. An empirical application of Cyclical Capitalization is offered to the office market of the Eastern London.
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Abidoye, Rotimi Boluwatife, and Albert P. C. Chan. "A survey of property valuation approaches in Nigeria." Property Management 34, no. 5 (October 17, 2016): 364–80. http://dx.doi.org/10.1108/pm-07-2015-0035.
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Purpose The emerging trend in the global real estate valuation practice has led to the development of advanced valuation approaches to replace the traditional methods. The purpose of this paper is to investigate the extent to which real estate valuers practicing in Nigeria are aware and use these advanced approaches in real estate valuation practice. Design/methodology/approach Both traditional and advanced approaches were identified from the literature. An online-based questionnaire survey was administered on estate surveyors and valuers to measure their level of awareness and frequency of use of the identified valuation approaches. The feedback was collated and analyzed using descriptive statistical analysis. Findings The professionals are mostly aware of the traditional methods and always use the “sales comparison method” in practice. In contrast, they are not very aware of the advanced approaches and hence, only use the hedonic pricing model occasionally in practice. Research limitations/implications The study only focuses on the Lagos metropolis, a nationwide survey will produce more comfortable generalizable findings. Practical implications This is a wake-up call for the real estate regulatory bodies and indeed all the real estate professionals in Nigeria to embrace the use of the advanced valuation approaches in practice, in order to remain relevant in the international real estate practice. Originality/value Implementation of the recommendations of this study could help position the Nigerian real estate professionals and the industry for a global exposition.
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Dimopoulos, Thomas, and Nikolaos Bakas. "Sensitivity Analysis of Machine Learning Models for the Mass Appraisal of Real Estate. Case Study of Residential Units in Nicosia, Cyprus." Remote Sensing 11, no. 24 (December 17, 2019): 3047. http://dx.doi.org/10.3390/rs11243047.
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A recent study of property valuation literature indicated that the vast majority of researchers and academics in the field of real estate are focusing on Mass Appraisals rather than on the further development of the existing valuation methods. Researchers are using a variety of mathematical models used within the field of Machine Learning, which are applied to real estate valuations with high accuracy. On the other hand, it appears that professional valuers do not use these sophisticated models during daily practice, rather they operate using the traditional five methods. The Department of Lands and Surveys in Cyprus recently published the property values (General Valuation) for taxation purposes which were calculated by applying a hybrid model based on the Cost approach with the use of regression analysis in order to quantify the specific parameters of each property. In this paper, the authors propose a number of algorithms based on Artificial Intelligence and Machine Learning approaches that improve the accuracy of these results significantly. The aim of this work is to investigate the capabilities of such models and how they can be used for the mass appraisal of properties, to highlight the importance of sensitivity analysis in such models and also to increase the transparency so that automated valuation models (AVM) can be used for the day-to-day work of the valuer.
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Aluko, Bioye Tajudeen. "ACCURACY OF AUCTION SALE VALUATIONS IN DISTRESSED BANK LENDING DECISIONS IN NIGERIA." Journal of Business Economics and Management 8, no. 3 (September 30, 2007): 225–33. http://dx.doi.org/10.3846/16111699.2007.9636172.
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Of all the sub‐sectors of the national economy, the banking industry and the property market have arguably been most severely affected by the current recession. Thus, the prevailing credit crunch in real estate finance and market conditions have implication for disposal and valuations of real estate for mortgage purposes. The study examined whether forced sale valuations of mortgage properties were a good proxy for their auction sale prices. Relevant data involving 67 auction sales of foreclosed residential property transactions together with their contemporaneous forced sale valuations were pooled together in Lagos Metropolis during the period 1994 to 2003 from sample of estate surveying and valuation/auctioneering firms, the lending institutions and the Nigeria Deport Insurance Corporation. The data obtained were analyzed with the aid of frequency distributions and multiple regression models. The study revealed, amongst others, that forced sale values are not good proxies for auction sale prices as against the conclusions of previous studies on accuracy of open market valuations either in Nigeria or other countries like UK, USA and Australia. The implications of the foregoing conclusions on the lending decisions and valuation profession in the country were further examined in the paper.
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Kuraś, Piotr. "DESCRIPTION OF THE PROPERTY VALUATION PROCESS IN POLISH CONDITIONS." Zeszyty Naukowe Wyższej Szkoły Humanitas Zarządzanie 20, no. 3 (September 30, 2019): 61–73. http://dx.doi.org/10.5604/01.3001.0013.7240.
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The study attempts to describe the property valuation process in the context of regulations in force In Poland. For this purpose, to this end, the current legal acts, professional standards of real estate appraisers as well as institutional and economic conditions were analyzed. The study starts with the characterization of the property at the subject of valuation, the types of determined values, then the silhouette of the real estate appraiser as a professional authorized to valuation of the property was presented. The most important part of the study, from the point of view of the study goal, is the description of the process of valuation of real estate in Polish conditions. This paper presents a general valuation model, which the difficult and complex problem of valuation presents in a comprehensive, consistent and logical way. Various research approaches have been used for the purpose of the study. Qualitative approach based on observation, interview, analysis of dispersed sources allowed to formulate research assumptions. Next, methods of scientific inference were used, mainly analysis and synthesis. In the paper, due to the aim, mainly the Polish literature on the subject was used as well as legal acts and other sources of information.
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De Paola, Pierfrancesco. "Real Estate Valuations with Small Dataset: A Novel Method Based on the Maximum Entropy Principle and Lagrange Multipliers." Real Estate 1, no. 1 (January 31, 2024): 26–40. http://dx.doi.org/10.3390/realestate1010003.
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Accuracy in property valuations is a fundamental element in the real estate market for making informed decisions and developing effective investment strategies. The complex dynamics of real estate markets, coupled with the high differentiation of properties, scarcity, and opaqueness of real estate data, underscore the importance of adopting advanced approaches to obtain accurate valuations, especially with small property samples. The objective of this study is to explore the applicability of the Maximum Entropy Principle to real estate valuations with the support of Lagrange multipliers, emphasizing how this methodology can significantly enhance valuation precision, particularly with a small real estate sample. The excellent results obtained suggest that the Maximum Entropy Principle with Lagrange multipliers can be successfully employed for real estate valuations. In the case study, the average prediction error for sales prices ranged from 5.12% to 6.91%, indicating a very high potential for its application in real estate valuations. Compared to other established methodologies, the Maximum Entropy Principle with Lagrange multipliers aims to be a valid alternative with superior advantages.
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Seiler, Michael J. "International Real Estate Review." International Real Estate Review 17, no. 2 (August 31, 2014): 137–56. http://dx.doi.org/10.53383/100182.
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This study uses a behavioral approach to measure the impact of a partial eminent domain land taking (which affects easement rights and causes proximity damage) on residential property values. Existing appraisal methods are not suited to handle this type of unique valuation impact determination, yet diminution must be determined by the courts to establish proper "just compensation". To accomplish the quantification of damages, an experimental design is implemented that allows the market to voice its opinion of valuation impact through a mechanism other than direct comparable sales. Moreover, this behavioral methodology can and should be used in a number of additional real estate valuation applications.
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Utmani, Ritika. "How can Circular Strategies be Implemented in Real Estate Valuation AN EXPLORATORY RESEARCH." MET Management Review 10, no. 01 (2023): 65–77. http://dx.doi.org/10.34047/mmr.2020.10109.
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The construction sector, as one of the world's greatest waste generators, is responsible for a cascade of events such as global warming, climate change, and natural resource depletion. Raw materials are continuously extracted from nature, and the rate at which they can refill is insufficient to meet demand. This system suffers significant losses across the value chain (Ellen MacArthur Foundation, 2013). On the contrary, the circular economy concept proposes a circular model of 'reuse-refurbish-recycle' that focuses on reducing waste and optimising resource value retention. The strategy is ideal to adopt in a high-growth, high-waste sector like the built environment. This research was taken up because a significant gap is seen within valuation practices. The current valuation methods, although efficient, collect data and provide property valuations based on previous studies. For example, when using a comparative method of property valuation, we compare one asset with a neighbouring one, that has similar features. This process incorporates the older values already provided to this old building, without accounting for innovations such as re-usability or adaptability of the components How different would the sector be if we incorporated the value of circular interventions to the original value determined, rather than looking back at older valuation standards? Will there be a significant difference, and, more importantly, would it impact the way real estate investors viewed circularity? In conducting the research, The primary hypothesis of this study was that there is a link between circularity and valuation and that this link can be incorporated within present valuation procedures. The thesis research explains how the connections can be made, as well as specific actual instances for each. The number of possible scenarios is endless.
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Kulil, Vladimír. "Goodwill and Special Influences Affecting the Value of Real Estate." Advanced Materials Research 1020 (October 2014): 760–64. http://dx.doi.org/10.4028/www.scientific.net/amr.1020.760.
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The subject matter of this thesis is a proposal for a method of valuation of special effects that will impact real estate prices. It deals with proposed procedures for valuation of intangible assets (goodwill), and definitions of such property. Special effects are in particular name, historical value, design, quality of layout, security aspects, accessibility, conflict groups of inhabitants in or near the property, location and other. The value of special effects can be calculated as the difference between market value and the material value of such property without coefficients of merchantability.
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Majumdar, Raju. "Valuation of hotel property: issues and challenges." Worldwide Hospitality and Tourism Themes 11, no. 4 (August 12, 2019): 418–28. http://dx.doi.org/10.1108/whatt-04-2019-0017.
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Purpose The purpose of this paper is to provide a practitioners’ perspective on the valuation models used for valuing hotel property and the challenges posed by traditional valuation models in their application and use. Set in the context of the Indian hospitality industry, the paper brings out the paradigm shifts that have taken place in recent years in the context of valuations. The paper also attempts to provide resolution to the issues and challenges raised. Design/methodology/approach This study assimilates data from senior finance professionals and by using semi-structured interviews, draws on a wide spectrum of hotels in India. Findings The findings suggest that the earnings-based models are largely followed in valuing hotel property in India. The major challenges encountered in the valuation process as highlighted by the respondents are related to (a) the growing uncertainty associated with projections of future earnings given the plethora of assumptions made at a micro and macro level, and (b) determination of an appropriate discounting factor for computing the present value of future cash flows. Research limitations/implications This paper generates useful qualitative information on existing practices in valuation in the Indian hospitality sector. The findings will be useful for hoteliers, policymakers and researchers in bringing forth the valuation challenges faced in the context of a developing economy and its characteristic institutional weaknesses. The findings of this paper may be furthered through appropriate and detailed quantitative analysis of primary and secondary data on the issues and challenges raised here. Originality/value This paper makes a sincere attempt to highlight the real challenges faced in valuing hotel properties and as such adds value to the existing literature.
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Tymoshchyk, Liliia. "Classification of Factors Influencing the Valuation of Real Estate During its Sale." Modern Economics 23, no. 1 (October 27, 2020): 215–19. http://dx.doi.org/10.31521/modecon.v23(2020)-34.
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Annotation. Introduction. The mechanism of property valuation in Ukraine at the present stage of its development deals with the formation of a database on the state and dynamics of changes in the real estate market and the development of methodological tools for property valuation. This article is devoted to the study of such a category of tools as factors influencing the valuation of real estate when selling it in Ukraine. Purpose. The purpose of this article is to consider the factors that affect the valuation of real estate when selling it, and their classification. Results. The task of property valuation depends on its purpose. Properly defined purpose of the assessment establishes the cost base (or its type). Depending on the goal, a number of factors have been formed, which are taken into account in the evaluation process and affect its size, and the approach to their interpretation. The article considers four groups of factors. Physical factors take into account the condition of the property, its location and the characteristics of the stage of the life cycle of the territory. Analysis of this group allows you to determine the prospects of the object in accordance with the general condition of the area in which it is located. Economic factors have been determined by the demand in the local real estate market, risks, construction costs and related factors related to its course, taxes, proximity to roads and utilities. Considerable attention is paid in the article to the assessment of the value of enterprises and such specific factors of influence as liquidity of assets and the nature of corporate governance. Social factors consist of changes in the number and employment of the population in the territory, gender and age characteristics of the population, income level and so on. For enterprises, this group of factors includes the social composition of employees. The last group of factors, administrative (political), has a global character – it is determined by the nature of public policy in the area related to real estate or construction. Conclusions. Drawing conclusions in the article, the author emphasizes the constant nature of changes in factors – both the emergence of new and reassessment of others. It can change even depending on who is conducting it, so the evaluation should be independent, and a number of recommendations should be implemented to improve its transparency. Keywords: property; property management; management efficiency; territorial community.
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Kostikova, Ekaterina G., and Elena V. Migacheva. "Determination of the Cadastral Value of Real Estate for Tax Purposes." Rossijskoe pravosudie, no. 7 (June 25, 2023): 91–102. http://dx.doi.org/10.37399/issn2072-909x.2023.7.91-102.
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The article deals with topical issues of determining the cadastral value of immovable property for tax purposes, as well as the possibility of establishing the market value of the property. The authors investigate individual conflict situations arising in the process of cadastral valuation of individual real estate objects. In the modern system of market relations, the valuation of real estate plays an important role, as the most common, but at the same time the most contested type of valuation in the judicial authorities. In this regard, the role of the correctness of establishing the cadastral value of real estate objects increases.
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Droj, Gabriela, Anita Kwartnik-Pruc, and Laurențiu Droj. "A Comprehensive Overview Regarding the Impact of GIS on Property Valuation." ISPRS International Journal of Geo-Information 13, no. 6 (May 25, 2024): 175. http://dx.doi.org/10.3390/ijgi13060175.
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In the face of pressing global challenges such as climate change, socioeconomic inequalities, and rapid urbanization, ensuring sustainable development in the regions has become essential. The COVID-19 pandemic has highlighted how vulnerable cities are to unforeseen crises and underscored the urgent need for proactive urban planning strategies capable of navigating dynamic and unpredictable futures. In this context, the use of geographic information systems (GIS) offers researchers and decision makers a distinct advantage in the study of spatial data and enables the comprehensive study of spatial and temporal patterns in various disciplines, including real estate valuation. Central to the integration of modern technology into real estate valuation is the need to mitigate the inherent subjectivity of traditional valuation methods while increasing efficiency through the use of mass appraisal techniques. This study draws on extensive academic literature comprising 103 research articles published between 1993 and January 2024 to shed light on the multifaceted application of GISs in real estate valuation. In particular, three main areas are addressed: (1) hedonic models, (2) artificial intelligence (AI), and mathematical appraisal models. This synthesis emphasizes the interdependence of numerous societal challenges and highlights the need for interdisciplinary collaboration to address them effectively. In addition, this study provides a repertoire of methodologies that underscores the potential of advanced technologies, including artificial intelligence, GISs, and satellite imagery, to improve the subjectivity of traditional valuation approaches and thereby promote greater accuracy and productivity in real estate valuation. By integrating GISs into real estate valuation methodologies, stakeholders can navigate the complexity of urban landscapes with greater precision and promote equitable valuation practices that are conducive to sustainable urban development.
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Eboy, Oliver Valentine, and Avie Krista Jurah. "Modeling the Commercial Property Value Using Ordinary Least Squared (OLS): A Case Study of Putatan, Sabah and Limbang, Sarawak." Malaysian Journal of Social Sciences and Humanities (MJSSH) 6, no. 3 (March 8, 2021): 290–96. http://dx.doi.org/10.47405/mjssh.v6i3.686.
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Real Estate is an asset that provides profitable investment in return. Commercial property constitutes an important part of the real estate sector. In valuing commercial property, rental value is an essential component for valuers in applying valuation methods. Determining the rental value usually a difficult process as it involves a lot of influence factors. There are various factors that can be used but not the same for every commercial property. Therefore, this paper shows the modeling valuation comparison between two commercial property areas of Putatan and Limbang that represent the outskirts of the city in Sabah and Sarawak respectively. The purpose of this study is to find an effective approach to develop a suitable model for commercial property valuation using OLS and subsequently intends to identify factors that influence the commercial properties for both study areas. The OLS technique was used for this study to develop the property valuation model in Putatan and Limbang. The outcome shows that both study areas can be modeled using OLS for property valuation using similar factors but the Limbang area produced higher accuracy than Putatan based on the adjusted R2 value. However, in terms of the significant of the property value influence factors, both Limbang and Putatan produced different significant factors. Thus, it shows that most of the outskirt city commercial property valuation must be modeled using different influence factors. The model will benefit the local authorities, especially for commercial property valuation. Ultimately, revaluation also can be done easily with low cost, less time and few people needed for this approach.
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Nedelkov, Andrey Viktorovich. "The New Stage of State Real Estate Cadastre Valuation (in the Russian Federation)." E3S Web of Conferences 535 (2024): 02011. http://dx.doi.org/10.1051/e3sconf/202453502011.
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Accurate real estate market data is crucial for decision-making by governments, businesses, and individuals. Without it, costs rise and development of investment and tax policies suffers. In Russia, the state real estate cadastre valuation is the main data source, but its credibility wanes due to errors and delayed updates. This article reviews the 20-year evolution of this system through four stages. The aim of this study is to analyse the problems and shortcomings in conducting cadastre valuation and property assessment in the Russian Federation, and to propose recommendations for improving this system. In the process of research, normative documents that served as an information base for achieving the set goal were analysed, and a comparative analysis of property tax assessment systems and tax policies of various countries was conducted. Based on the conducted analysis, the author proposes recommendations to enhance tax policy and real estate cadastre valuation in Russia. The recommendations involve adjustments, updated tax value criteria, considering diverse property value factors, separating cadastre valuation from mass appraisal, and accommodating variations in tax base calculation. Implementing these recommendations can contribute to addressing issues in cadastre valuation and create a fairer, more effective taxation system for land and property.
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Drapikovskyi, Oleksandr, and Iryna Ivanova. "Property Damage Assessment Methods and Models due to Armed Aggression." Real Estate Management and Valuation 31, no. 3 (September 1, 2023): 32–43. http://dx.doi.org/10.2478/remav-2023-0019.
Full textAbstract:
Abstract The paper deals with the conceptualization of the gross development value to assess direct damages and the restoration needs of lost, destroyed and damaged real estate as a result of armed aggression. A critical review of the existing practice of assessing property damage has been carried out. The measurement units of direct damages and the restoration needs, the evidence base used, the valuation methods for the determination of property damage are analyzed. The methodological potential of compounded cash flow models and the criteria for assessing their reliability is substantiated. A system of valuation models for calculating direct damages and restoration needs is proposed, depending on the category of real estate and market conditions at the valuation date. These valuation models are relatively simple to implement and understandable to the intended users of property damage valuation reports.
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Mittal, Prabhat. "Aspects of sensitivity analysis on NAV valuation in Real Estate sector – A case on Prajay Engineers Syndicate." VEETHIKA-An International Interdisciplinary Research Journal 1, no. 3 (December 31, 2015): 44–52. http://dx.doi.org/10.48001/veethika.2015.01.03.006.
Full textAbstract:
Valuation of property prices has become challenging for many real estate companies in India. Many companies have just entered to market and hence lack proven track records, their land banks and Net Asset values NAVs are not mature and carry regulatory and disclosure risks. NAVs are used as standard valuation benchmark for at least the near term. The present study in the paper is an attempt to create a valuation model for a real estate company. Sensitivity analysis of increase in cost of property prices and construction cost on the valuation has also been achieved to see the impact on the NAVs