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One of the less explored areas in the profession of property valuation is the assessment of the market value of publicly owned or used properties (such as roads, public utilities, parks or prisons). In particular, the “quasi-market” segment, which partly operates according to market mechanisms, is the most challenging point. Hospitals, theatres and museums are examples of such “quasi-market” public properties. Such projects have some market revenues; however, these are not enough to provide a return on the invested capital. Advanced methods of decision-support and analysis have been developed regarding public investments, and the modern technical literature studies the measurement of consumers’ willingness to pay (WTP) intensively. Building on these foundations and using a museum as an example, the author proposes a framework which follows the logic of market valuation and facilitates the Market Value appraisal of “quasi-market” properties based on uniform principles.

Model for the Market Valuation of Public, “Quasi-market” Properties, using the Valuation of a Museum Building as an Example