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Modeling Physical Depreciation of Real Estate Using Methods of Income Approach



Andrey Belykh
andrey_belykh@mail.ru
valuer of the Department of Consulting and Evaluation of “Obverse Evaluation of City Property”
St. Petersburg
We consider the possibility of modeling the loss of value of real estate due to physical depreciation using income approach. We carry out the analysis of how the model can be applied in accordance with existing descriptions of physical depreciation and different methods to assess it.

Keywords:

  • physical depreciation
  • cost-is-no-object approach
  • income approach
  • net operating income
  • 188300 Russia, Leningrad region, Gatchina, st. Roshchinskaya, 5