Role of real estate valuation in the management of property of business entities

Abstract

The article examines the role of real estate valuation in property management. The purpose of the scientific work is to confirm the hypothesis about the efficiency of applying methods and techniques used in the Russian practice of assessing the market value of real estate. The hypothesis is based on the postulate that for successful operation of an enterprise, any asset should bring a positive effect in the amount that levels the costs of acquisition, operation and modernisation. As a result, in the context of the article, the efficiency of the property management is considered through the prism of economic efficiency. Thus, the most economically efficient management decision in the property management is the one that brings the greatest cash flow on the selected planning horizon. The main objective of this article is to analyse the Russian practice of the real estate valuation in the context of searching for effective tools that allow making management decisions regarding the disposal of property. To achieve the stated goal and objectives, mainly general scientific methods have been used, including analysis, synthesis and generalisation. The article proves that the application of the methods and techniques used in the Russian practice of valuation is appropriate when making a management decision regarding the disposal of the property. Thus, property management entities are recommended to study the basis for assessing the market value of real estate objects.