Abstract

In estimating the market value of a property by income approach, the determination of the capitalization rate is ordinarily conducted through analogical process. The procedure is based on the identification of price-earnings ratio of similar investments. The analogy refers to the risk and the duration of the investment. However, in all cases there still remains a rate of uncertainty that significantly affects the final estimation of the property. This paper proposes a methodology which removes any uncertainty when evaluating the cap-rate. The aim is achieved through the combination of the formal logic of the Ellwood’s model and the Real Options Analysis. The algorithm developed has been applied to a sample relative to 57 Italian cities, considering annual prices from 1967 to 2012. The results highlight the validity of the model and the easiness of use

Autore Pugliese

• Morano Pierluigi

Tutti gli autori

• Morano P , Manganelli B , Tajani F

Titolo volume/Rivista

Non Disponibile

Anno di pubblicazione

2013

ISSN

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ISBN

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Numero di citazioni Wos

Nessuna citazione

Ultimo Aggiornamento Citazioni

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Numero di citazioni Scopus

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Ultimo Aggiornamento Citazioni

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Settori ERC

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Codici ASJC

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