Economic depreciation in the property objects valuation

Abstract

© 2015, Mediterranean Center of Social and Educational Research. All rights reserved. The article reveals the essence of economic depreciation in the property objects valuation. We investigate the methodological aspect of quantitative evaluation of economic depreciation. Two groups of methods traditionally used in economic depreciation valuation of property objects have been examined: (a) based on comparison of similar objects sales, and (b) based on the analysis of income loss. A brief description of these methods is given, identified are the advantages and disadvantages of their use for external economic depreciation value calculation and economic depreciation of property objects. Recommendations have been formulated for practical application of various methods of economic depreciation valuation.