Study Of Capitalization Rate In The Appraisal Of Real Estate

Along with the development of social economy, appraising and other relevant things including consulting and planning of real estate are playing a more and more important role. As the indispensable important parameter in appraising of real estate, capitalization rate has significant influence on the price of real estate. Limited of the means and depth of the research, a good many questions existed in understanding, calculating and using of capitalization rate in the industry of appraising at presentThis thesis lays stress on theoretical research, and regards instance as the evidence, pays attention to analyzing the investment attribute of real estate and relevant behavior caused from this, combines the market tendency analyzing, studies the characteristic of capitalization rate and its possible change. Firstly, the writer defines the essence of capitalization rate from the respects of its use value and practice signification. Secondly, analyzes the characters of immovable property investment from the angle of economics, psychology and behaviouristic, analyzes relevant basic theories emphatically such as the characteristic of real estate market, the characteristic of its capitalization rate, the factor influencing capitalization rate, the fluctuation characteristic on time array of capitalization rate and the cause of the fluctuation, etc., and has analyzed the weak point existing in current various kinas of calculating method in detail, then the conceit of establishing the system of organic and unified method has been put forward on this basis: Aiming at the current situation that the research on capitalization rate is quite limited, the work load of measuring is large and the cost is high, and it is feasible technical and un-remunerative economically for every user to measure the rate independently, has proposed the scheme explored of establishing the system of revising in certain area. In addition, the writer has pointed out the possible falsehood or impropriety while quoting real estate capitalization rate, and has clarified some ambiguous concept and improper understanding.Finally, from two angles of the investment yield rates in immovable property and the rates of rent and price in current real estate market, the writer takes Nanjing City as an example, has analyzed the whole level of real estate capitalization rate briefly on the basis of analyzing a great deal of factors influencing the overall level of the rate.