Real Estate Valuation

The correct valuation of a property is one of the most important components of transactions in the real estate sector. Our team of experts supports you in determining the right value for your property or portfolio in the context of M&A transactions (share deals) as well as individual projects (asset deals).

How can we help you?

Our internationally oriented team is familiar with real estate and properties of various types of use, especially in the areas of office, hotels and commercial properties, residential properties and special uses. Our team of experts checks the plausibility of individual and portfolio valuations for

  • national and international transactions,
  • accounting and tax purposes, and
  • case-by-case decisions.

Methodology of Real Estate Valuation

When valuing real estate, various factors can have an impact on the value of the property. These include, in particular, the location, the maintenance costs, the investment requirements and the possible uses. Topics such as sustainability are also playing an increasingly important role in the valuation of real estate. Our team uses the three most recognized valuation methods to value real estate:

  1. Comparative value method
  2. Tangible value method
  3. Income Method

Comparative value method

In the comparative value method, the property value is determined on the basis of comparable properties and plots of land, taking into account location, type of use, standard land value and subjective characteristics. Due to the inclusion of market data and the associated traceability and reliability, this method is most often used for residential real estate. Our team supports you with its many years of experience.

Tangible value method

The most complex method is the material value method, which takes into account market factors, but also production costs, standard land value and age-related depreciation. This valuation method provides an individual intrinsic value and is used in particular for industrial and public real estate. Our team of experts will help you to map the current market situation and to determine the correct database.

Income Method

In the income value method, the yield is used as the basis for calculating the value of the property, which is why this method is primarily used for commercial real estate and rented properties. In order to depict the income value, structural condition, remaining useful life, rental income, net income, property value, property interest rate and management costs are included, among other things. Our team of experts will assist you in identifying and evaluating the actual earnings value, taking into account the market phases as well as the potential for rent increases.

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