20 years of experience and the challenges for the next decade: Where the appraisal tends?

Kaarel Sahk

ERES from European Real Estate Society (ERES)

Abstract: Good foundation for analyse of real estate appraisal situation gives us a timescale of the procedures development during some last decades. The time scale of procedure itself is possible to divide into deferent segments that are describing the political or economic development of a state as a built environment and prolong it into the subsequent future. According the current trends of development of world economy, it is evidential that some new approaches of real estate valuation will direct the procedure during the following decade. On the one hand, it is strongly linked with development of international or local valuation standards, the contemporary drivers are also implementation of ISO 9001 principles together with the third party insurance, and on the other hand, the changes accounting some new principles of development of all surroundings and their influences as well. The basic importance arise from influences of certain EU decrees and directives, overall principles of sustainability that in turn place attention to the approaches of energy efficiency described trough energy labels and finally bring the valuation to need for something new. In this case the basic question is how the historical equation formed in 1930 by Miller (The theory of interest, McMillan) and developed during the last twenty years by Baum and Crosby (1995) and Michael Ball et.al (1998) through the interpretation of depreciation’s nature, will finally account variable of sustainability. Lastly named draws down a new target, which means a need to establish a linkage based on market research, while the real estate market includes different markets and submarkets linked with classical and neoclassical diversification of real estate in all.

Keywords: appraisal procedure; principles of sustainability; Standardization; timescale; variables of sustainability (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2019-01-01
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