Open AccessTHE APPLICATION OF MULTI-CRITERION METHODS FOR VALUATION OF RECREATION PROPERTY/DIE ANWENDUNG DER MEHRKRITERIELLEN METHODE BEI DER BEWERTUNG VON ERHOLUNGSGRUNDSTÜCKEN
Author(s) -
Edmundas Kazimieras Zavadskas,
Artûras Kaklauskas,
Saulius Raslanas,
Vida Malienė
Publication year - 2001
Publication title -
journal of civil engineering and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 47
eISSN - 1822-3605
pISSN - 1392-3730
DOI - 10.3846/13921525.2001.10531744
Subject(s) - valuation (finance) , income approach , property market , real estate , market value , recreation , actuarial science , economics , econometrics , finance , political science , law
Multi-criterion valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income use [1]. A number of problems in the valuation of real property can be eliminated by the methods of multiple criteria analysis, which came into existence only at the second half of the 20th century. Currently, they have become very important in the international practice of the real property valuation. In most cases they are based on market modelling and economic assumptions. Therefore, sometimes they are referred to as separate valuation methods, and classified as modern ones.This article describes a new method of multiple criteria analysis. This method based on the market analysis and valuation principle is in line with the traditional comparative value method, therefore it can be attributed to the group of the indirect comparative value methods. These methods facilitate the universal and more extensive multiple criteria analysis of the property, since they take account of a number of different criteria, ie qualitative, quantitative ones, market conditions. The proposed method can meet the demands and needs of many interested groups since it enables to estimate not only the market value of the property, but also other values, eg investment value, value of use, market value of the current use of the property, etc. This article analyses the theoretical model of the method, which was used to estimate the market value of the recreation premises.