FINANCIAL EVALUATION OF PROPERTY DEVELOPMENT PROJECTS. CASH FLOW METHOD
Published: 23 Aug 2015
Abstract: Property development is a constant process, and therefore the developer must not just conduct a one-off appraisal in the research and evaluation phase, but rather needs to constantly reappraise the profitability of the scheme throughout the development process. Financial evaluation of property development projects uses several conventional techniques or methods. In the cash flow method costs and revenues are allocated over the time of their occurrence in the development period. In this way the calculation of funding fees over time, which are often due for a longer period than the development period, as well as of other costs and revenues, is much more accurate than the residual valuation.
Keywords: financial evaluation, cash flow, dcf, cf, property development, property finance
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