University of Applied Sciences Nordostniedersachsen Buxtehude, Germany

The property valuation of masonry houses and dwellings is historically based on the assessment of either the “real” (“material”) value or the “capitalized” value, This paper outlines new developments in property valuation methods and explains their application in practice. Modern “normalized building costs” per square meter of useable space are analyzed, different value depreciation theories are compared, and their effect on the real value of masonry houses is explained. The effect of the building material used is shown through a comparison of masonry houses relative to timber frame houses. The relationship between the real value and the “market value” of a masonry building is given, and consequences for the practical work in an appraiser’s practice are shown.
With regard to the “capitalized value ” a “sensitivity analysis” shows the effects which varying rents, interest rates of properties and the remaining useful life of the building have on the capitalized value. The paper concludes with a recommendation by which either the real value or the capitalized value should be chosen as a basis for assessing the market value of a masonry building.