Property valuation for apartment blocks: How is the value determined?

Property valuation for apartment blocks: How is the value determined?

The valuation of an apartment building is usually carried out using the capitalised earnings value method, which determines the potential return over a defined period. In practice, the property valuation of an apartment building means that a detailed analysis of the rental income, operating costs and value development potential is carried out. On this basis, the capitalised earnings value is determined, which in turn forms the basis for purchase or sale decisions.

How exactly does a property valuation of an apartment block work?

If you want to find out the value of an apartment building, you generally use the capitalised earnings value method. This income capitalisation method calculates how much profit the house can generate over a certain period of time through letting. This involves looking at various things: How much rent comes in, what is left after deducting all costs, and how much is the property worth. In Germany, this is the favoured method of calculation. In countries such as the USA or the UK, on the other hand, the focus is only on the amount of money that the rent brings in and the value of the property is disregarded.

Conversion formulae for properties

The following applies to the calculation of land: we have land with a land value based on the standard land values. The land is then calculated with a so-called property interest rate, because the land itself can generate a certain income - unlike the building, which has to be renovated, rebuilt or demolished at some point.

Conversion formulas for buildings

The process works slightly differently for buildings on the property. The first thing to consider here is the gross income: What is the actual net rent I will receive? In other words, what rent do I receive minus all operating costs, apportionable or non-apportionable costs that I bear as the owner?

There are factors for calculating the yield here. Every investor expects a certain return, and I can work this out by multiplying the net annual cold rent by 25, for example, resulting in a return of 4 per cent, for example. The question then arises: can I sell my property for a yield of 4 per cent or does the market expect a higher yield? With a factor of 18, we would have a yield of 6 per cent. This always depends on the respective market and the expertise of the respective estate agent.

Find out your home's sales or rental value

Determine the current value of your property quickly and without obligation online. Benefit from a free initial valuation for your house or flat.

» Try it out.

Use our online calculator to determine the property value of your apartment building.

Our online property valuation calculator can precisely determine the value of apartment buildings in Berlin and Brandenburg. This innovative tool takes many different factors into account. These include the location, size, year of construction, condition, fixtures and fittings and current market trends. These factors help to produce a reliable valuation. By incorporating local property prices and demand factors, we achieve a high level of accuracy in the results.

Using the online calculator is straightforward and only requires the input of relevant data about the apartment building to be valued. Once this data has been entered, the system generates an accurate estimate. This value is a reliable basis for property-related decisions. This includes buying, selling, letting and financing.

Do you own an apartment block in Berlin or Brandenburg? Use our online calculator to efficiently and transparently determine the value of your property. This allows you to make informed decisions and optimise the management of your assets.

We support you!

Book a 30-minute free consultation.

Discuss your questions about buying or selling your property individually, without obligation and free of charge with Achim Amann | Managing Director of Black Label Properties.

» Book a consultation

Professional property valuation and personal advice from our experts.

Valuing an apartment building is a crucial step that requires expertise. Our online calculator provides a solid basis for this process by taking into account relevant factors such as rental income, operating costs and the value of the property. But our support goes far beyond a digital tool. As experienced estate agents, we personally guide you through every step of your property decisions. We understand the complexity and importance of every transaction and therefore offer our expertise to provide you with the best possible advice.

We specialise in the Berlin and Brandenburg market and use our local knowledge to support you in buying, selling, renting or financing your apartment buildings. Use not only our online calculator, but also our comprehensive advisory service. Take advantage of our expertise and support to optimally manage and increase your assets. We are here to advise and guide you so that you can make the best possible decisions.