Steve Thomas
2 minute read
3 Oct 2019
7:24 am

How to determine the real value of real estate

Steve Thomas

Real estate has long been touted as a good investment on the basis that property has excellent value.

Image: iStock

But to capitalise in a dynamic marketplace one has to understand the meaning of value in this context and the key factors contributing to it. When broadly defined, real estate is the value of the land plus the improvements on it, the resources beneath it – and the rights above it, without which the former has a basic, unenhanced intrinsic value with minimal benefit or yield. In determining value, many people attribute a lot of weight to the rand per square metre ratio and, while it is certainly one factor, it’s much more significant to those who view real estate...