Property Valuation and Market Cycle

This book discusses the role of the property market cycle in real estate valuation. Challenging traditional property valuation methods that rely on current market conditions and economic trends, this book argues for a re-evaluation of the relationship between property valuation and cycles in property markets. The book is divided into two parts. The first part gathers research on property market cycle analysis and the delicate problems dealing with property market information including the development of the real estate market index, appraisal bias, and the use of time series in plotting the market cycle. The second part proposes several possible modifications to the traditional income approach methodologies, including cyclical capitalization and the hedonic price method. Furthermore, this part also addresses the need for amendments to current s property valuation standards and institutional regulations. Written by an international cross-section of expert voices in market cycles andproperty valuation, the book is a comprehensive resource for any researcher or upper-level student studying economic volatility.

Discusses the role of the property market cycle in real estate valuation Investigates the consequences of pro-cyclicality on mortgage lending and mortgage securities valuation Explores the relationship between bank, conduit, and valuation activity

Auteur
Maurizio d'Amato is Associate Professor in the School of Engineering, Technical University Politecnico di Bari, Italy, where he teaches real estate investment and valuation. He completed his undergraduate work in economics at the University of Bari and worked for several banks (Bank of Rome, Bank of Salento, Micos - Mediobanca) in real estate finance before entering the doctoral program in Planning, specializing in Valuation methods, at the Politecnico di Bari. He received the faculty appointment of Researcher at the Politecnico di Bari in 1999. He has been Scientific Director of the Real Estate Center of Italian Association of Real Estate Counselor (AICI). He has taught courses on real estate in Rome, Poland, Latvia, Spain, and the US. He is a recognized expert in property valuation and holds several international qualifications.

Yener Coskun is an associate professor in finance with a specific focus on ESG, REITs, and (business/real estate) valuation. Asa visiting scholar, Yener studied at Wharton School, UPENN (the U.S.), in 2003 and at the University of Sheffield (the U.K.) in 2019. Yener is the author of numerous papers published in academic and industry journals. He has four published books, several peer-reviewed (in journals & books), and professional articles in finance, real estate finance, and housing macroeconomics. Among others, his studies were published in Housing Studies, Emerging Markets Review, and Empirical Economics. Coskun teaches capital markets, corporate finance, business valuation, and ESG/sustainability courses at a professional level. Dr. Coskun was visiting lecturer for the University of Sarajevo (2012-2013), Izmir University of Economics (2012-2016), Middle East Technical University (2017-2018), and University of Ljubljana (2018), and University of Sheffield (2019). He currently holds visiting lecturer positions at TED University (2019-) in Turkey and has been working for the Capital Markets Board of Turkey since 1995 as the senior regulator.

Contenu
Chapter 1: Introduction.- Part I: Inside Property Market Cycle.- Chapter 2: Property Market Cycle.- Chapter 3: On the Essence of property cycles.- Chapter 4: Addressing Cyclicality Through International Financial Standards.- Chapter 5: Dealing with Cyclical Assets.- Chapter 6: The Logic of a Cyclical Adjustment. Some reflexions.- Chapter 7: Property Market Cycle, Commercial Property and Mortgage Lending Value.- Chapter 8: The Effects of Heuristics and Biases on Real Estate Valuation.- Chapter 9: Standardized valuation of real estate reflecting cyclical economic development experience of last two decades.- Part II: Problems and Solutions.- Chapter 10: Thinking Out the Box.- Chapter 11: Regulatory Responses to Property Cycles.- Chapter 12: Property Valuation in Cyclical Market Conditions.- Chapter 13: Property Market Cycle and Valuation: A Geometrical Approach.- Chapter 14: The Transactional Assets Pricing Approach: property valuation implications and a potential for fundamental valueresearch.- Chapter 15: Measures of Variability in the Application of Cyclical Capitalization (normal form) to London Office Market.- Chapter 16: Housing valuation and the business cycle: The hedonic house price indices approach.- Chapter 17: Property valuation, transaction prices and market activity.- Chapter 18: Methodological Integration between Property Market Cycle and Valuation Process. Other Cyclical Capitalization Models.- Part III: Conclusion.- Chapter 19: Property Market Cycle and ValuationFilling the Gap.