We can assist you with:

• Development Alternatives Analysis and Estimating the Appropriate Price

  To determine the potential of a property, the "Highest and Best Use" (HBU) analysis is considered. This is most often necessary for undeveloped land or properties that require further development (for example, an office building that, given the current and projected market context, might be best repurposed as a hotel).

  To determine the HBU of a property, four filters are used to assess the most probable and reasonable uses of the property:

  • Physical Possibility: This criterion considers uses that can be achieved based on physical characteristics (surface area, height, construction system, load-bearing capacity, etc.).

  • Legal Permissibility: This criterion examines which uses remaining after the physical possibility filter are legally permissible under urban planning, environmental regulations, etc.

  • Financial Feasibility: This criterion removes uses that are not financially viable, meaning only uses with a value at least equal to the level of investment remain in the analysis.

    • This criterion is based on an informed analysis of the specific market, considering competitive supply, solvable demand, and trends affecting the real estate market (demographic, economic, etc.).

  • Maximizing Productivity: This filter indicates the feasible use that maximizes the value/return.

    • This criterion is based on a complex and rigorous analysis, using concrete, relevant, and appropriate market data.

Real estate properties can have significant growth potential depending on factors such as infrastructure development, urban changes, or growing demand. Potential valuations can uncover investment opportunities that are not immediately apparent.

Evaluating the potential helps set the correct price for a property, ensuring the transaction is fair for both the seller and buyer, avoiding the risk of overpaying or selling below market value. In the case of an investment, proper valuation can increase returns and reduce financial risks.

•  Estimating Obtainable Rent

Estimating the obtainable rent for a property depends on several factors influencing the level of rent, including:

• Property type, quality, and the building/land area

• Location and distance from points of interest (public transport stations, schools, shopping centers, etc.)

• Supply and demand ratio within the market area

We have the experience and expertise necessary to provide well-founded opinions, including regarding undeveloped land – a service less frequently offered in real estate consultancy portfolios.

• Conclusion

Evaluating the potential of a real estate property is crucial for making informed and effective decisions. Whether it's for investments, development, or transactions, this valuation provides a clear perspective on the current and potential value, risks, and opportunities, ensuring long-term success in the real estate market.