Study of appraisal methods of Spolom LLC’s non-residential premises in the city of Lviv
Students Name: Bochkov Serhii Volodymyrovych
Qualification Level: magister
Speciality: Land and Real Estate Valuation
Institute: Institute of Geodesy
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: Bochkov S.V., Hubar Yu. (supervisor). Study of appraisal methods of Spolom LLC’s non-residential premises in the city of Lviv. Master’s thesis. - Lviv Polytechnic National University, Lviv, 2022. Extended abstract. After the coronavirus pandemic, which hit commercial real estate hard and during which many companies had to transfer employees to remote work or invest money in creating safe working conditions, a short period of recovery of the real estate market began, unfortunately, a war began that caused colossal losses that are still difficult to estimate. The improvement of the situation on the fronts made it possible to remove the destruction and begin reconstruction work in some regions. The situation has relatively stabilized in remote regions where a large number of internally displaced persons have moved and are forced to rent housing there or use the social housing program. Very little demand for buying real estate due to the shaky situation and high risks, commercial real estate lacks investment. It is also worth noting that costs for business have also increased, because due to planned and unplanned power outages, many factories are forced to use generators, which increase costs. For small businesses, this is a serious blow, and without a generator, many cannot work. But demand remains in safe regions because many enterprises had to change their location. Therefore, the topic of the master’s thesis is relevant and analytics is very important. The regulatory and legal basis of real estate valuation in Ukraine was analyzed and relevant scientific works were selected according to the topic of the work. The theoretical foundations of the assessment are presented. The paper provides an overview of the commercial real estate market and describes the situation with different types of commercial real estate. In accordance with this, the evaluation method was selected and the location of the object and the characteristics of the structural elements were analyzed, their description and condition were given. Real estate was assessed using three methodical approaches: cost, income and comparative. The capitalization rate is calculated and explanations are given. The adjustments necessary for comparing the selected objects with the object of evaluation were identified, and the necessary coefficients and the method of their calculation were described. The result was agreed and the cost of the object was determined. The information on the basis of which the assessment and analysis of the market was carried out was taken from relevant sources [1-17]. Study object – commercial real estate. Scope of research – the real estate market and the method of evaluating commercial real estate premises. Goal of research: analysis of evaluation methods in modern conditions. Briefly put research results. Research results. A methodology for evaluating commercial real estate is proposed during work. The calculation of the capitalization rate in the conditions of an inactive market is considered and the calculation is shown, as well as the advantages of these methods. The real estate market in a difficult period was studied, the region and city of the location of the object and prospects for the development of commercial real estate in Lviv were considered. The technical condition of the premises and the value of the location were assessed, and photographs and accompanying documents with the characteristics of the object were shown. The appraised premises is an architectural monument and is for rent. The technical condition and value of the location were assessed, as well as the expediency of the functional purpose. The cost calculation was carried out using three methodical approaches: cost, income and comparative. During the evaluation, the capitalization rate was determined by the method of cumulative construction, taking into account additional risks, and the cost and income approach was applied. Comparison objects were also selected and amendments were introduced with a detailed description. On the basis of these results, the results are agreed and the conclusion is given. Keywords: real estate valuation, commercial real estate, methical approaches, real estate market analysis, methodical approaches. References: 1. Economic essence and significance of land taxation. [Electronic resource] - Mode of access: http://www.finalearn.com/lifers-356-1.html - Title from screen. 2. Classifier of objects of the administrative and territorial system of Ukraine. DK 014-97. /State Classifier of Ukraine in 3 volumes. - K.: Derzhkomstat of Ukraine, 1997. 3. Appraisal of business and real estate. Education pos./ Kucherenko V. R., Kvach Ya. P., Smentina N. 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