Direct real estate investment evaluation

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The separate assessment of building and land value is essential for the Czech Republic, especially following the Civil Code amendment that aligns local legislation with European standards. This focused approach to real estate appraisal is increasingly relevant amid current crises, as conventional asset pricing faces growing uncertainty. The distinct evaluation of land and building value is particularly significant in the Czech context, where ownership structures are evolving. The authors challenge the adequacy of the neoclassical paradigm for real estate investment evaluation, emphasizing that real estate markets are inherently imperfect. They successfully integrate neoclassical evaluation methods, such as discounted cash flow and capital asset pricing models, with traditional German approaches, including the German yield model and gross rental method. The research findings presented are grounded in solid scientific principles and are directly applicable in practice, offering valuable insights for real estate professionals navigating today's complex market landscape.