Real estate valuation — the professional process of determining the value of a real property asset as of a specific date, considering its physical, legal and economic characteristics.
Market value of real estate — the most probable price at which a property would be sold on the open market between independent and knowledgeable parties without coercion.
Independent real estate valuation — a valuation performed by a certified valuer who has no personal or financial interest in the outcome of the valuation.
Real estate valuation report — an official written document containing a description of the property, the purpose of the valuation, the methods applied, the calculations performed and the final conclusion on its value.
Property under valuation — the specific real estate asset being valued, such as a building, structure, premises or land plot.
Residential real estate — property intended for living purposes, including apartments, houses and cottages.
Commercial real estate — property used for business activities: office, retail, warehouse and industrial premises.
Land plot — a defined portion of land with established boundaries and legal status, which may be valued as a separate asset.
Comparative approach to valuation — method of determining the value of real estate by analysing the sale prices or offers of similar properties on the market.
Income approach to valuation — a valuation method based on forecasting future income from the use of a property and its capitalisation or discounting.
Cost approach to valuation — a valuation method that determines the property’s value based on the cost to reproduce or replace it, considering physical and functional wear and tear.
Valuation date — the date as of which the value of the property is determined, regardless of the date on which the report is prepared.
Purpose of valuation — the reason for conducting a valuation, such as purchase or sale, financing, taxation, litigation or investment analysis.
Highest and best use — the legally permissible, physically possible and financially feasible use of a property that results in its maximum value.
Physical depreciation — a decrease in property value due to physical wear, ageing or damage.
Functional obsolescence — a reduction in property value resulting from outdated layout, technical features or operational characteristics.
Economic (external) obsolescence — a loss in property value caused by external factors such as market shifts, economic conditions or regulatory constraints.
Real estate market analysis — the study of supply, demand, pricing trends and competitive environment to support valuation conclusions.
Income capitalisation — a method of determining value by converting stabilised income into a property value using a capitalisation rate.
Discounted cash flow (DCF) — a valuation method that determines the present value of a property based on projected future cash flows.
Legal due diligence of the property — verification of the legal status of real estate, including ownership rights, restrictions and encumbrances.
Property liquidity — the degree to which a property can be sold within a reasonable timeframe without significant price reduction.
Investment value — the value of a property to a particular investor, considering their individual goals and expectations.
International Valuation Standards (IVS) — a set of globally recognised principles and requirements that ensure a consistent approach to asset valuation in international practice.