Real Estate Development
Development Valuations and Viability Studies
Development Appraisal is undertaken for two principal reasons:
- To determine the value of land and/or buildings where development is likely to release latent value.
- To determine the viability of a development in terms of profitability
In this lecture, the distinction between the two tasks will be clarified and discussed and all relevant mathematical models and techniques will be considered.
Real Estate Valuation Theurgy, Property Education
Chichester, West Sussex, UK
To be successful, the developer of commercial or residential property needs to understand all aspects of the property market and the construction cycles. In particular, there is an intrinsic link between the profitability of a development and the state of property investment market at the time of delivering the new building to the market.
This course aims to provide delegates with an understanding of the process by which developments are assessed from simple heuristic benchmarks through to detailed cash flows and viability studies with sensitivity analysis. It looks at current market conditions and the uncertainties that arise from developing in a downturn.
This course will cover:
- Residual Calculations for Development Valuations
- Residual Calculations for Viability Studies (including Forecasting and Expectations)
- Measures of profitability (including Scenario/Sensitivity Analysis)
Agenda is below (hours expressed in CET – Belgrade time zone) :
14.00 DEVELOPMENT VALUATIONS VS VIABILITY STUDIES
A short revision of the role of the valuer/analyst and the distinction between valuations and viability studies
14.30 APPROACHES, METHODS and MODELS
A discussion of development valuations in the context of definitions and requirements on valuers (TEGOVA EVS)
14.45 THE RESIDUAL MODEL FOR MARKET VALUE
The application of implicit and cash flow models for market pricing
15:20 Comfort Break
15:30 THE RESIDUAL MODEL FOR VIABILITY STUDIES
The application of implicit and cash flow models for determining profit
16:30 THE RESIDUAL MODEL – Sensitivity modelling
Development is fraught with uncertainty and it is important to understand the upside and downside risk of any project.
17:00 INDIVIDUAL WORK ON CASE STUDY
Live stream of the online seminar will be broadcasted via NAVS platform. Participants will be able to ask questions through chat or email and the professor will answer after the seminar. Participation in this seminar will bring you 6 CPD points for REV continuous professional development.
You can register at firstname.lastname@example.org