ABSTRACT
The chapter looks at the basic models and definitions for valuation of real estate assets, reviewing the most relevant models, respectively based on multiples, cost and income. The chapter presents in a simple way the main elements for applying such valuation techniques and discusses the steps that need to be taken in practical applications. A good understanding of these models is necessary for practitioners who are active in the real estate market, particularly when dealing with non-performing exposures, which typically require reviews of the real estate assets underlying the various financial contracts. A valuation case study of a luxury resort is considered and discussed at length in the final part of the chapter.
