Development Appraisals: Determining Land Value

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Contents

Development Appraisals are an integral part of a valuers’ work, particularly in a rising market when development activity starts to increase. This talk provides an overview of the residual method to determine land values for development sites:

• The Income Approach and the Residual Method
• The Traditional Residual Model to determine Land Value
• Shortcoming and disadvantages
• The Cash Flow Residual Model to determine Land Value
• Overview of Residuals as Valuation models

Learning Objectives

On completion of this video you should:

• Have an understanding of land pricing by residual models
• Know how to estimate finance costs and account for interest in an appropriate way
• Have an understanding of critical variables and timings within a development cash flow

Speaker

NICK FRENCH

Nick is a recognised expert in the area of property appraisal and valuation. He is Programme Director of the MSc Real Estate Programmes at Oxford Brookes University and teaches extensively in the areas of appraisal, valuation and corporate real estate on the BSc, MSc and MBA programmes.

He is a member of the Royal Institution of Chartered Surveyors (RICS) and, in 2012, he was appointed to the Professional Board of the International Valuation Standards Council (IVSC). He is also a member of the Appraisal Institute (USA), CoreNet, ERES, AREUEA and ARES. Nick was the founding member of the European Real Estate Society.

Nick is also the Editor of the Journal of Property Investment & Finance, the award winning academic international journal of the real estate industry. He also writes regularly for, The Estates Gazette. The European Journal of Real Estate Research, The Journal of Corporate Real Estate and other professional and academic journals.