Property Valuation in Uncertain and Cyclical Market Condition

Maurizio d’Amato () and Yener Coskun ()
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Maurizio d’Amato: Technical University Politecnico di Bari

Chapter Chapter 12 in Property Valuation and Market Cycle, 2022, pp 165-178 from Springer

Abstract: Abstract Traditional real estate valuation framework employs backward-looking historical data by assuming stable market conditions. However, this hypothetical framework results in biased outcomes in value forecasting specifically in a highly volatile and cyclical environment. This unsolved problem implies that real estate valuation metrics may be extended by reflecting the impacts of uncertainty and cyclicality. The contribution of this chapter will be focused on how property valuation methods deal with uncertain and cyclical market conditions for the valuation of income-producing properties. Utilizing theoretical/empirical literature analysis and professional documents, we conclude that cyclical valuation approaches may provide solutions for the weaknesses of traditional valuation framework.

Keywords: Cyclical valuation; Cyclical capitalization; Cyclical asset; Real estate market cycle (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-09450-7_12

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DOI: 10.1007/978-3-031-09450-7_12

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