Real Estate Value: Creation and Destruction?

This paper presents the initial results of a major research project concerning real estate value. A central consideration is the analysis of those factors that impact upon value, in particular how value is created in real estate development ventures and investment deals. The converse of how real estate value may be destroyed forms a key component of the analysis. It is argued that a better understanding of these processes would allow more informed and successful decisions to be made in structuring investments and evaluating performance. The information underpinning this study is based on a survey of real estate professionals aimed at increasing knowledge on how value is created and destroyed. The study, which is being conducted at a global level, initially compares findings and perceptions from the UK market with those for the US using a common survey tool. Conclusions focus upon factors influencing real estate value, consequences arising from changes in value and implications for policy mechanisms notably in an urban regeneration context.