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Is there a way in which I can predict the future market value of a real estate property?

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Question added by Thurayya Al Qasim , Legal Counsellor , Ihqaq Law Firm
Date Posted: 2017/02/20
Khem Raj Bhattarai
by Khem Raj Bhattarai , Administrative Assistant , Nepal Credit and Commerce Bank

There is a lot of ways in which we can measure the value of real state but in finance we can use time value of and capital budgeting. For example we can calculate future value of real state by using this formul

                                                                    No. of year

Value of real state = (1+ Annual growth rate)  

 

we can also measure through calculating 

Net present value and Internal rate of return

Dias Taukebay
by Dias Taukebay , real estate analyst , Comfort Development Company

For the evaluation of real estate (land and buildings, structures), it is possible to use many approaches. There number of factors that affect the future value of the real estate market. There are approaches such as profit based, comparative-based and cost-based. 

For instance, the method of capitalization of income for evaluating the market value is used in the valuation of income-producing real estate. Revenues from owning real estate can, for example, represent current and future income from letting it out, incomes from a possible increase in the value of real estate when it is sold in the future. The result of this method consists of both the cost of buildings, structures, and the value of the land.

Ahmad Knio
by Ahmad Knio , Senior Project Manager , Pricewaterhousecoopers

Simply by checking the yearly inflation rate at your country where you can multiply the current value by the inflation rate noting that the current market dynamics (demand and supply) can affect the future market value of your assets.

Ahmad Hawa
by Ahmad Hawa , SALES & PROJECT MANAGER , NEW TECH

On My opinion the first reading depend on the size of demand , and policy of supply and demand in the market ? for example During a tour by car in the market and found a lot of banners advertise apartments and offices for sale or rent ? that mean the size of Supply is more than Demand ,and the other side the size of Demand is low . this is a index of about the market , addition to that the social Media , Specialized in real estate websites about future of this sector. All of the above is possible to give a preliminary reading by market value, which is a reflection of the relationship between supply and demand in the real estate market.

But My advice any one have a cash money can invest in this safe field for future is a better from others sectors , but before this decision there are some steps should follow it for example the future of this area, Is there an infrastructure ? Is there a growing demand? Are there hospitals schools? Are there services? All of these a attract Factors for customers in the future .

محمد رمضان
by محمد رمضان , super visor for Marketing department , Marketing department

Yes, there are a lot of ways in which the future market value of the real estate measure. But the social sciences such as economics can not predict the rate of one hundred percent. Where the intervention of a lot of factors that we call random factors. In this case, the prediction of random factors will be a very large proportion. So there is in the world of math and science is impossible, but our results are always going to be in this case, accompanied by a large proportion of random factors, which in turn affect the efficiency of our expectations.

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