Chapter 6: Property Valuation and Developer's Budget

This chapter covers the methods of determining the value of property and a developer's budget. This includes the factors that influence the development of construction sites. The investment decision is pertinent to guide the developer's budget and enhance a financial outlay with the goal of future cash inflows. The chapter also identifies where investment appraisal could be used. Different valuation methods (contractor, residual, profit or account, comparison, investment, reinstatement and hedonic price modelling) are presented. The chapter concludes with an explanation of a developer's budget and its components, and practical examples are presented.