Property capitalisation rates - benchmarking the property market.

What is it about?

It outlines over a 22-year period the discount rate / initial yield (cap rate) / risk free rate, as applied to a prime investment office block in Malta.

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Why is it important?

It discusses the construction & applicability of implicit valuation models using a market capitalisation rate. It suggests that the explicit discounted cash flow model should be used sparingly in the valuation of property investments, only in the short term.

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