Details zur Publikation |
| Kategorie | Textpublikation |
| Referenztyp | Zeitschriften |
| DOI | 10.3846/1648715X.2011.633771 |
| Titel (primär) | Valuation of market uncertainties for contaminated land |
| Autor | Bartke, S. |
| Journal / Serie | International Journal of Strategic Property Management |
| Erscheinungsjahr | 2011 |
| Department | OEKON |
| Band/Volume | 15 |
| Heft | 4 |
| Seite von | 356 |
| Seite bis | 378 |
| Sprache | englisch |
| Keywords | Real estate appraisal; Contaminated land; Valuation of perceived uncertainties; Stigma and marketability risk; Risk scoring methodThe revitalisation of contaminated land carries many risks and uncertainties. This paper aims to reveal drivers of risk perception and to introduce a novel valuation method for the assessment of market-perceived risks for sites polluted by earlier use in a transparent and comprehensible procedure. International approaches to account for value deductions due to contaminations and resulting uncertainties are reviewed. Based on the literature review and a national survey amongst German professional appraisers, a risk assessment methodology is elaborated, outlined and applied in a case study approach. We find that areas that have been properly decontaminated on average still have a depressed market value of 12.25%. Quantities such as location, time and feasibility of passing on risks can be combined in an algorithm to determine the absolute value reduction for a specific property to be appraised. Results should help appraisers, international investors and portfolio managers to deepen their understanding of valuation of risks associated with (previously) contaminated land. |
| Abstract | The revitalisation of contaminated land carries many risks and uncertainties. This paper aims to reveal drivers of risk perception and to introduce a novel valuation method for the assessment of market-perceived risks for sites polluted by earlier use in a transparent and comprehensible procedure. International approaches to account for value deductions due to contaminations and resulting uncertainties are reviewed. Based on the literature review and a national survey amongst German professional appraisers, a risk assessment methodology is elaborated, outlined and applied in a case study approach. We find that areas that have been properly decontaminated on average still have a depressed market value of 12.25%. Quantities such as location, time and feasibility of passing on risks can be combined in an algorithm to determine the absolute value reduction for a specific property to be appraised. Results should help appraisers, international investors and portfolio managers to deepen their understanding of valuation of risks associated with (previously) contaminated land. |
| dauerhafte UFZ-Verlinkung | https://www.ufz.de/index.php?en=20939&ufzPublicationIdentifier=11704 |
| Bartke, S. (2011): Valuation of market uncertainties for contaminated land Int. J. Strateg. Prop. Manag. 15 (4), 356 - 378 |
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