Residual valuation is the process of valuing land with development potential. It is a financial assessment to enable a developer to justify the viability of a specific project. The key element is to establish the Land Value before the inception of the project.
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The land value derived from the residual valuation is not expected to be an ultimate benchmark to proceed with the project, nor is it a comprehensive list of the information that may be requested for a decision maker.
The rationale is that the developer may look at other factors that effecting the project apart from the land value. The residual valuation has an extremely sensitive parameters and assumptions, it can be misleading if the whole context is not considered realistically.
Attendees will learn about the rational of residual valuation:
Mohammed Firdaus Idris has 26-years working experience in general practice (valuation, estate agency, property investment and property developer), ofwhich 14 years as a property consultant and 12 years with a property developer.
Mohammed has a Diploma in Valuation from University of Technology in Malaysia. He holds a BSc(Hons) in Estate Management from London South Bank University, is a Member of the Royal Institution Chartered of Surveyors and a Member of the Royal Institution of Surveyors in Malaysia and Member of PEPS (Association of Valuers Property Consultants in Malaysia). Mohammed specializes in valuations of special projects such as Special Commercial properties, Airport, Golf Courses, Gas station, Quarry, Hotel, Plantations Valuation, IPO and Merger and Compulsory Land Acquisitions exercises.