Methodology of Real Estate Valuation in a Whole Life Cycle Context

Abstract

Valuations of real estate are widely used in financial and other markets. Valuation methodology is based on the workings of a free market economy. The value can be determined by a single valuation approach or by a combination of multiple approaches. In real estate valuation it is essential to understand the modelling of the economic potential of the property during the life cycle. The combination of theoretical knowledge with valuation practice has been implemented through cooperation with an international audit and consulting company operating on the Czech market. The aim of the project is to describe the life cycle of real estate from the point of view of the appraiser and identify the key assumption affecting the valuation methodology used for real estate valuation. The outcome of the project could be used by real estate valuation experts as a guideline for choosing the appropriate valuation approach. © 2019 The Authors. Published by Budapest University of Technology and Economics & Diamond Congress Ltd. Peer-review under responsibility of the scientific committee of the Creative Construction Conference 2019.