European valuation practices: how to compare valuations across borders? Initial findings
| Date | 12 July 2011 |
| Published date | 12 July 2011 |
| DOI | https://doi.org/10.1108/14635781111150411 |
| Pages | 575-581 |
| Author | Aart Hordijk,Paul Nelisse,Leonie Koerhuis‐Gritter |
| Subject Matter | Property management & built environment |
PRACTICE BRIEFING
European valuation practices:
how to compare valuations across
borders? Initial findings
Aart Hordijk
TiasNimbas Business School, Tilburg, The Netherlands
Paul Nelisse
TiasNimbas Business School, Tilburg, and Colliers International, Amsterdam,
The Netherlands, and
Leonie Koerhuis-Gritter
Tilburg University, Tilburg, The Netherlands
Abstract
Purpose – Real estate investors invest more and more cross-border, but the valuation practices in the
different countries are not similar. For investors it is good to know the difference in valuations between
the countries, therefore this paper aims to investigate the valuation practices in eight different
countries (France, Germany, Italy, The Netherlands, Portugal, Russia, Spain and the UK).
Design/methodology/approach – To gather the information a questionnaire was sent out. The
questionnaire included questions not only about facts, but also about the respondents’ opinion about
the reliability of the information.
Findings – It was found that in the different countries market value is not always the basis and that a
wide variation of surface measurements is currently applied. Regular lease periods and the
responsibility for operating cost vary from country to country. Also the sources for market evidence
and their reliability differ per country. So it can be seen that, although market values can be compared
across countries, valuation methodologies are country-specific.
Research limitations/implications – The authors are still in the process of retrieving information
and quality control, and the intention is to expand the research to all European Union countries, and
finally all European countries. Therefore this paper only shows initial findings.
Originality/value – The existing research about international valuation practices is not very recent,
and, because the authors not only assembled facts and processes, but also collected the respondents’
opinions about the reliability of the information, the research is very valuable.
Keywords Cross-bordervaluation, Europe, Real estate, Assets valuation, Investments
Paper type Research paper
1. Introduction: reason for the research
The last decennia more transparency has entered the real estate markets in many
countries because of the increase of performance measurement of institutional real
estate holdings by the Investment Property Databank (IPD). The performance
measurement consists of direct return, mainly based on net rental income and indirect
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-578X.htm
The authors very much appreciate all the efforts which have been made by the representatives of
the above mentioned eight countries who contributed so far.
European
valuation
practices
575
Journal of Property Investment &
Finance
Vol. 29 No. 4/5, 2011
pp. 575-581
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635781111150411
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