An analysis of valuation variation in the UK commercial property market

Alastair Adair (Norman Hutchison is a Lecturer, Bryan MacGregor is a Professor and Nanda Nanthakumaran is a Senior Lecturer all at the Centre for Property Research, Department of Land Economy, University of Aberdeen, UK. Alastair Adair is a Professor and Stanley McGreal is a Reader, both at the Centre for Research on Property, Planning and Logistics, School of the Built Environment, University of Ulster, UK)
Norman Hutchison (Norman Hutchison is a Lecturer, Bryan MacGregor is a Professor and Nanda Nanthakumaran is a Senior Lecturer all at the Centre for Property Research, Department of Land Economy, University of Aberdeen, UK. Alastair Adair is a Professor and Stanley McGreal is a Reader, both at the Centre for Research on Property, Planning and Logistics, School of the Built Environment, University of Ulster, UK)
Bryan MacGregor (Norman Hutchison is a Lecturer, Bryan MacGregor is a Professor and Nanda Nanthakumaran is a Senior Lecturer all at the Centre for Property Research, Department of Land Economy, University of Aberdeen, UK. Alastair Adair is a Professor and Stanley McGreal is a Reader, both at the Centre for Research on Property, Planning and Logistics, School of the Built Environment, University of Ulster, UK)
Stanley McGreal (Norman Hutchison is a Lecturer, Bryan MacGregor is a Professor and Nanda Nanthakumaran is a Senior Lecturer all at the Centre for Property Research, Department of Land Economy, University of Aberdeen, UK. Alastair Adair is a Professor and Stanley McGreal is a Reader, both at the Centre for Research on Property, Planning and Logistics, School of the Built Environment, University of Ulster, UK)
Nanda Nanthakumaran (Norman Hutchison is a Lecturer, Bryan MacGregor is a Professor and Nanda Nanthakumaran is a Senior Lecturer all at the Centre for Property Research, Department of Land Economy, University of Aberdeen, UK. Alastair Adair is a Professor and Stanley McGreal is a Reader, both at the Centre for Research on Property, Planning and Logistics, School of the Built Environment, University of Ulster, UK)

Journal of Property Valuation and Investment

ISSN: 0960-2712

Publication date: 1 December 1996

Abstract

Addresses the issue of valuation variation. The fundamental research question is to establish the range of valuations which a group of qualified valuers operating in the same market and using the same basic assumptions would produce in their estimation of price. It significantly extends the approach adopted by Hager and Lord and draws conclusions about different market sectors, locations and size of firms. The results of the survey show a wide variation in value across both rack rented and reversionary interests. In terms of the former over 80 per cent of all valuations produced a variation from the mean of less than 20 per cent with a corresponding figure of over 90 per cent for the reversionary investments. These levels of accuracy fall short of the contention that valuers can value to within 5‐10 per cent of market value.

Keywords

Citation

Adair, A., Hutchison, N., MacGregor, B., McGreal, S. and Nanthakumaran, N. (1996), "An analysis of valuation variation in the UK commercial property market", Journal of Property Valuation and Investment, Vol. 14 No. 5, pp. 34-47. https://doi.org/10.1108/14635789610154271

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Publisher

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MCB UP Ltd

Copyright © 1996, MCB UP Limited

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