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Real estate yield from rental and value relationship
[Různé kategorie výnosnosti nemovitostí a dopady jejich aplikace]

Author

Listed:
  • Daniel Veselý
  • Tomáš Podškubka

Abstract

This article deals with the evaluation and application of real estate rate of return - the so-called yield. The principle is that yields can be distinguished at several levels and it is therefore important to look more closely at the input data. It states what are the categories of yield according to the professional public, their methods of calculation and what factors can affect the rate of yield. It is also pointed out that reported yields often lack more detailed information on how they are calculated and what exactly reflects as a result. It is also stated how the rate of yields within each type of real estate has evolved over the last years. Possible impacts of misstatement or application of yield are shown in two case scenarios that are modelled to outline the size of the potential error space within each category of yield.

Suggested Citation

  • Daniel Veselý & Tomáš Podškubka, 2019. "Real estate yield from rental and value relationship [Různé kategorie výnosnosti nemovitostí a dopady jejich aplikace]," Oceňování, Prague University of Economics and Business, vol. 12(2), pages 49-57.
  • Handle: RePEc:prg:jnloce:v:12:y:2019:i:2:id:2019_2_04:p:49-57
    DOI: 10.18267/j.ocenovani.231
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    More about this item

    Keywords

    Real Estate; Yield; Valuation; Transaction; Nemovitost; Oceňování; Transakce;
    All these keywords.

    JEL classification:

    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

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