This section places the subject property within its regional market, identifying trends and factors that influence values — and showing that the appraiser knows the location in depth.
Components of the analysis
- Local market profile — supply and demand, liquidity, buyer and tenant profiles, and development drivers.
- Regional comparison — how the property positions against similar neighborhoods, above or below the average.
- Trends — short- and mid-term outlook, considering urban plans, launches and infrastructure works.
Value drivers
- Prime location
- View, sun orientation and environment
- Favorable zoning
- New investments in the area
Value detractors
- Access or mobility problems
- Urban or social decay
- Proximity to pollution sources
- Oversupply in the market