This paper is focused on a proposed valuation method including real estate market cycle analysis in real estate valuation process. Starting from early works on this field (d'Amato 2003) the work highlight the dangerous gap between academic research on property market cycles and professional practice of property valuation. The danger of this gap comes from the fact that in spite it is well documented that the property market has a “natural” cyclical behaviour, the opinions of value based on income approaches still relies on assumption of a stable or perpetually growing (or decreasing) income. This may be one generating factors of the real estate bubble and the subsequent financial markets crisis experienced recently. This paper offers a general introduction on cyclical capitalization as a further family of valuation methodologies based on income approach. This method includes in the traditional Dividend Discount Model more than one g-factor in order to plot property market cycle. An empirical application of Cyclical Capitalization is offered to the office market of the Eastern London.

The work is focused on a new model of mass appraising including location variable. A location adjustment factor derived from a mathematical iteration was compared to the location adjustment factor based on geostatistical techniques. The work compares three different linear MRA models. The first one uses the location blind linear MRA. The second integrates the linear MRA with a location adjustment factor calculated using spatial interpolation. The second alternative is an application of Location Value Response Surface Models (O'Connor, 1982). It represents the first application of these models for mass appraising in Italy. The third approach introduces the Iterative Location Adjustment Factor. This is a factor which measure the influence of location derived from a mathematical iteration. Empirical results seem to prove the validity of Iterative Location Adjustment Factors in specific context with few observations. Santruka Darbe nagrinejamas naujas masinio turto vertinimo modelis, apimantis geografines padeties kintamaji. Iteraciniu būdu apskaičiuotas geografines padeties korekcijos veiksnys palygintas su geografines padeties korekcijos veiksniu, gautu taikant geostatistinius metodus. darbe lyginami trys skirtingi tiesiniai mrA modeliai. Pirmajame naudojamas geografines padeties nevertinantis tiesinis MRA. Antrajame tiesinis MRA sujungiamas su geografines padeties korekcijos veiksniu, apskaičiuotu pasitelkus erdvine interpoliacija. Antrojoje alternatyvoje pritaikomi geografines padeties vertes stebimojo paviršiaus (angl. Location Value Response Surface) modeliai (O'Connor 1982). Italijoje šie modeliai masiniam turto vertinimui naudojami pirma karta. Trečiojoje alternatyvoje taikomas iteracinis geografines padeties korekcijos veiksnys. Jis ivertina geografines padeties itaka, nustatyta iteraciniu būdu. Empiriniai rezultatai, regis, irodo iteraciniu geografines padeties korekcijos veiksniu pagristuma konkrečiame kontekste, kai stebejimu yra mažai.

From a risk analysis perspective, property is typically treated as just another asset class. Some academics propose only a financial – not a physical or a functional – definition of valuation modelling. An alternative method is proposed here to assess the risk premium for both property valuation and assessment of worth which is directly based on the property market, rather than the traditional financial model of risk premium determination or reliance on the individual expertise of a property valuer. The proposed method is based on the empirical relationship between discount cash flow (DCF) inputs and output, and can be based on the prices of comparable properties. In the traditional approach, the fact that financial modelling approximates real property to a financial asset class arguably emphasizes the illiquid nature of real property. As a consequence, all the attributes including sustainability indicators are normally not taken into account by property valuers and consultants. The market increasingly requires green buildings and development; through the use of the proposed model this need can be included in the data for risk premium estimation, in the valuation process, and, generally speaking, in the body of knowledge informing the property market. Du point de vue de l'analyse du risque, les biens immobiliers sont habituellement traités simplement comme une catégorie d'actifs parmi d'autres. Certains universitaires proposent une définition de la modélisation de l'évaluation qui n'est ni physique, ni fonctionnelle, mais uniquement financière. Il est proposé ici, pour évaluer la prime de risque relative à la fois à l'évaluation immobilière et à l'estimation de la valeur, une méthode alternative qui est directement basée sur le marché de l'immobilier, plutôt que sur le modèle financier classique de détermination de la prime de risque ou sur le recours aux compétences particulières d'un expert immobilier. La méthode proposée est fondée sur la relation empirique entre les entrées et les sorties des flux de trésorerie actualisés (DCF), et peut être basée sur les prix de biens immobiliers comparables. L'on peut soutenir que, dans l'approche classique, le fait que la modélisation financière assimile les biens immobiliers à une catégorie d'actifs financiers fait ressortir la nature illiquide des biens immobiliers. Il s'ensuit que normalement tous les attributs, y compris les indicateurs de durabilité, ne sont pas pris en compte par les experts et les consultants immobiliers. Le marché exige de plus en plus des bâtiments et un développement verts; grâce à l'utilisation du modèle proposé, ce besoin peut être inclus dans les données utilisées pour estimer la prime de risque, au cours du processus d'évaluation, et, en règle générale, dans le corpus de connaissances éclairant le marché de l'immobilier. bâtiments flux de trésorerie actualisés (DCF) évaluation immobilière prime de risque durabilité valeur

In the valuation of a property subject to development, the valuer may consider the potential aspect of the value of both land to be improved and a building to be refurbished. These kinds of valuations are complex, especially when a prudent assessment of value is required. In general terms, all properties may have potential development which, in some cases, can be termed “hope”. In particular, uncertainty regarding the change in the legal framework may create expectations as to the uncertain variation of property value in the future. In these cases, it may be necessary to deal with hope value or future value, trying to reach the value of a property subjected to uncertain changes. Hope value is the difference between the existing use value and the price that the market might pay for future transformation. The main aim of the paper is the elaboration of a methodology to determine the hope value. In this work, a real option model for the valuation of hope value in the real estate market will be applied to a small sample of residential properties located in Olsztyn that are subject to possible transformation. The possibility of a transformation may create expectations and may influence the value of the property. Although the applications of these methods to real estate valuation are fairly recent, the International Valuation Standards have included real option theory in the income approach as a valuation method since 2011.

There is not a single definition/explanation about market-orientation education. Two opposite definitions/explanations of pure market-oriented education (Cato, 2010) and social-market-oriented education (Amaratunga, 2009) are provided in the paper. Integrated multiple criteria analysis at the micro-, meso- and macro-levels are needed to increase efficiency of the market-oriented higher education reforms. Market-oriented higher education reforms management involves numerous aspects that should be considered in addition to making educational, pedagogical, didactical, economic, political and legal/regulatory decisions. These must include social, culture, ethical, psychological, environmental, technological, technical, organizational and managerial aspects. This article presents a Life Cycle Process Model of a Market-Oriented and Student Centered Higher Education (developed during BELL-CURVE (Built Environment Lifelong Learning Challenging University Responses to Vocational Education) project's activities) for such considerations and discusses certain composite parts of it. To demonstrate the application of this research, two Case Studies from Lithuania are submitted for consideration.