Real Estate Appraisal

Keypix

The KEYpix model is created by assigning values to each box of the fishnet which is half ofthe average size of building footprints in the project area. The parameters are acquired during the field assessments.

Appraisal methods

Three different methods are being used:
• Cost approach
• Sales comparison approach
• Income capitalization approach
Cost value = (Building Value + Main Region Value + Mid Region Value + Plot Value) – (Aging value) + Undertaker profit/loss

Sale values

Sale values are determined over various analyses, interviews with local real estate agents and researches of online adverts. Average m² values are determined after researches with valuation methods.

Rent income

Direct capitalization method connects the annual income with value. It is generally used in markets with sufficient information. Direct reduction method is also used which is applied to the full risks income.
Net operating income/Capitalization rate = Market value

Gross Mass Value

Gross mass value is determined by taking into account the zoning right, total construction area, expected cost of renewal and future incomes. The assessments also determine the expected time needed for the renewal of the whole city. This process needs big scale state investments and incentives in order to be sped up.