The use of rent capitalisations in real estate valuation in areas with high building densities
Goktepe, Ayhan & Mehmet Ertas
In Turkey, although real estate valuation started to be discussed at an academic level in 1975, its use was not adopted by the real estate market until the year 2000. In the valuations carried out in the early years; a) the sales comparison method, b) the income method, c) the cost method were used in plain or disorganised ways. However, on the way to the present day, these methods started to provide inaccurate results in valuations performed especially in areas where mass valuation is required. The use of classical valuation methods together or alone would be inadequate in the central areas of the city and in settlements surrounded by attraction centres where buildings are dense. Certain other data that provide a basis for valuation need to be known in such areas. Probably the most important of these data is rental income.
Event: FIG Working Week 2012 : Territory, environment, and cultural heritage
Only personal, non-commercial use of this document is allowed.