Direct real estate investment evaluation

“The possibility of a separate assessment of the building and land value is crucial for the Czech Republic as after the amendment to the Civil Code, harmonizing our legislation with the usual state of affairs in Europe will follow.” Prof. Ing. Oldrich Stary Czech Technical University, Prague “The focused topic of a sound approach to real estate appraisal is highly relevant, especially in the current times of crises, when the uncertainty of conventional asset pricing is increasing. The separated assessment of land value and building value is of particular interest in the Czech Republic, where separate ownership in land and building is actually under consolidation.” Dr. Jürg R. Bernet, MSC MBA FRICS EURO Institute of Real Estate Management, Cologne “When building the model of investments evaluation in real estate, the authors build on the inappropriateness of using only neoclassical paradigm, because real estate markets are imperfect. I appreciate the successful linking of neoclassical approach to evaluation (represented in particular by the discounted cash flow model and capital asset pricing model) and the traditional German approach (represented especially by the German yield model, German gross rental method or Deutsches Ertragswertverfahren). Furthermore, the results of the research presented in the monography are not only built on sound scientific basis, but at the same time they are directly usable in practice.” Jiří Hnilica, Ph. D. University of Economics, Prague