Editor: The publication of RICS’ Review of Real Estate Investment Valuations gives the property industry a golden opportunity to increase accuracy and trust in increasingly dynamic real estate markets.
The conclusion that discounted cashflow should now be used as the primary methodology when preparing valuations is particularly significant.
At a time when conventional methods are coming under greater scrutiny, discounted cashflow offers greater accuracy, more granular detail, a sounder valuation base and a more forward-looking perspective.
And with institutional investors allocating capital to a wide range of financial assets, it is a methodology that they are not only comfortable with but actively prefer.
It is for these reasons that Forbury has incorporated discounted cashflow into our valuation platforms as standard.
Trust in accurate valuations is the bedrock of all property markets. The time has come for the entire sector to embrace the advantages that discounted cashflow valuations bring.
Peter Rose, chief revenue office, Forbury