Cost Approach in Poland – the Assessment of the Real Estate Valuation Methodology

Jan Konowalczuk ()
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Jan Konowalczuk: Uniwersytet Ekonomiczny w Katowicach

World of Real Estate Journal (Swiat Nieruchomosci), 2017, issue 100, 11-18

Abstract: Cost approach related to the category of replacement value does not have the ability to explain or interpret increasingly complex relationships on the market. Cost is not seen as a factor which affects market value using the substitution principle. Costs must regain their dynamic significance as a key factor providing information about the state of market equilibrium and pointing to its power to transform costs into market value. The paper proposes the abandonment of a separate category of replacement value in favour of using the cost approach in real estate valuation.

Keywords: real estate valuation methodology; cost approach; substitution principle (search for similar items in EconPapers)
JEL-codes: H54 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:kra:journl:y:2017:i:100:p:11-18

DOI: 10.14659/worej.2017.100.02

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