Real estate development and valuation using the residual value method 108

Real estate development and valuation using the residual value method

The importance of real estate development lies in the changes in use and development that each property undergoes. The curriculum explains in detail the development and development process and its related elements and how it is reflected in the value of the property. The residual value method uses development components and inputs to determine the market value of the property. The elements of real estate development and the strengths and weaknesses of this method are also highlighted.