The role of investment property appraisal in European real estate companies
Journal of European Real Estate Research
ISSN: 1753-9269
Article publication date: 5 February 2020
Issue publication date: 22 April 2020
Abstract
Purpose
This paper aims to examine the connection between appraisals of investment properties and earnings properties in companies from two perspectives: what kinds of companies employ the most reputable appraisers and how appraisers produce estimations.
Design/methodology/approach
The research uses annual reports of European Union (EU) publicly traded real estate companies and examines the period 2007-2016.
Findings
The contribution of this study lies in establishing that some indicators and features of real estate companies affect the choice of appraiser and also in illustrating differences in the results of property valuations. In short, smaller companies with weaker performance are less willing to use external valuation, and external appraisers produce more conservative estimations for investment properties.
Practical implications
The research produces beneficial information for investors and other stakeholders interested in the real estate industry.
Originality/value
This is the first novel study to examine the link between appraisals of investment properties and earnings properties in companies in detail.
Keywords
Citation
Mäki, J. (2020), "The role of investment property appraisal in European real estate companies", Journal of European Real Estate Research, Vol. 13 No. 1, pp. 105-122. https://doi.org/10.1108/JERER-11-2019-0038
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited