The main objective of the project is to provide a tool for estimating the capitalization rate for the purpose of valuation of real estate with such cases where it is not possible to use market data of the corresponding market segment, including other specifics that make this impossible. Nevertheless, it is usually necessary to carry out such valuations. According to the International Valuation Standards (IVS 2017), the so-called modular method is permissible in such situations, but it must be correctly constructed on the basis of transparent financial market data. The capitalization rate estimation tool will transparently address the absolute lack of market data, including the problem of local differentiation, and thus also substantially increase the reviewability-transparency and improve the credibility of the estimate with minimizing the subjective factor in the valuation reports of the target group.
The project is affiliated to the Institute of Forensic Engineering, BUT. Department of Mathematics participates in the project.
