What is it about?
We propose a new model for the decomposition of rental multipliers for the property building element which also supports valuation of income-producing real properties based on the principle of stability and an un-orthodox application of discounted cash flow analysis. Having regard to the building/land element analytical split of overall property, the proposed model explicitly accounts for the impact of the value of underlying land on the decomposition of rental multipliers, and doesn’t require long-term forecasting of income.
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Why is it important?
Un-orthodox application of discounted cash flow analysis.
Perspectives
The proposed approach can be used to solve other problems of valuation
Mr Sergey A Smolyak
Central Economica and Mathematics Institute Russian Academy of Sciences
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This page is a summary of: Real Estate Management and Valuation, Real Estate Management and Valuation, De Gruyter,
DOI: 10.2478/remav.
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