Adapting the discounted cash flow model for real estate valuation in Sri Lanka: a Delphi study

Purpose - This study aims to explore how the discounted cash flow (DCF) model can be adapted for real estate valuation in Sri Lanka by proposing country-specific practices for operationalising input variables. Design/methodology/approach - A mixed-method approach following a two-round Delphi technique with professional valuers in Sri Lanka was used in this study. Findings - DCF can be adapted for property valuation in Sri Lanka within global professional practice, yet the opaque market conditions and limited data necessitate pragmatic approaches. This includes hybridising methods for key input variables, employing professional judgement and aligning methodological choices with established valuation practices to enhance practitioner acceptance. Practical implications - The study provides a comprehensive guide for valuation practitioners applying the DCF model to valuation in developing real estate markets, such as Sri Lanka. Social implications - This study contributes to enhancing equity and fairness in the real estate market, providing reliable information to support clients in making insightful decisions. Originality/value - This study offers a novel empirical contribution by examining the DCF model’s applicability in emerging markets such as Sri Lanka.