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Intermediate

Real Estate Valuation Methods: Comparable Sales, Income Capitalization, and Replacement Cost

A practical, India-focused course on how real estate is actually valued, built for investors who already own or are evaluating property and want more than a broker's gut feel. Learn the three standard approaches valuers use: comparable sales, which prices a property against what similar properties recently sold for; income capitalization, which prices a property against the rental income and cap rate it commands; and replacement cost, which prices a property against what it would cost to rebuild today. See where each method is pulled from in the Indian market, from registrar and RERA data to cap rates on pre-leased offices and REIT portfolios like Embassy, Mindspace and Nexus Select, to construction cost tables and depreciation schedules. Work through full numerical examples for a residential flat, a pre-leased office unit and a standalone warehouse, learn why the three methods often disagree and how to reconcile them, and finish with a decision framework and checklist for valuing any property you are about to buy, sell or lend against.

MODULES

5

DURATION

~4.6 hrs

TRACK

Alternative Investing

Access Level

LEARNER

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Full Text Playbooks

Actionable Exercises

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Curriculum Breakdown

Chapter 1: Why Real Estate Valuation Matters

4 Lessons

What Valuing a Property Actually Means: Price, Value and the Gap Between Them10 min read

Who Needs a Real Estate Valuation and Why10 min read

Three Ways to Answer One Question: An Overview of the Three Methods11 min read

Valuation vs Circle Rate vs Ready Reckoner Rate: Clearing Up a Common Confusion10 min read

Chapter 2: The Comparable Sales Method

5 Lessons

The Core Logic: What Similar Properties Recently Sold For10 min read

Finding Comparables in India: Registrar Data, RERA Filings, Portals and Brokers12 min read

Adjusting for Differences: Location, Floor, Age, Amenities and Carpet vs Built-up Area12 min read

Worked Example: Valuing a 3BHK in Bengaluru Using Three Comparables13 min read

Where Comparable Sales Breaks Down: Thin Markets, Distress Sales and Unique Assets10 min read

Chapter 3: The Income Capitalization Method

6 Lessons

The Core Logic: A Property Is Worth What Its Income Stream Justifies10 min read

Net Operating Income: Building It From Gross Rent Down to NOI12 min read

The Capitalization Rate: What It Means and How It Is Derived From the Market12 min read

Direct Capitalization vs Discounted Cash Flow: Two Income Approaches12 min read

Worked Example: Valuing a Pre-Leased Office Unit Using the Cap Rate13 min read

Applying Income Capitalization to REITs: Embassy, Mindspace and Nexus Select11 min read

Chapter 4: The Replacement Cost Method

5 Lessons

The Core Logic: What It Would Cost to Rebuild This Today10 min read

Land Value Plus Construction Cost: Building the Estimate12 min read

Depreciation: Physical, Functional and Economic Obsolescence12 min read

When Replacement Cost Is the Right Tool: Insurance, New Builds and Unique Properties10 min read

Worked Example: Valuing a Standalone Warehouse Using Replacement Cost12 min read

Chapter 5: Reconciling and Applying the Three Methods

5 Lessons

When the Three Methods Disagree: Reconciliation in Practice11 min read

Choosing the Right Method for the Asset in Front of You10 min read

Common Valuation Mistakes Indian Investors Make10 min read

Case Study: Valuing a Mixed-Use Property Using All Three Methods13 min read

A Practical Checklist Before You Rely on Any Valuation9 min read