Development of Commercial Real Estate Valuation in Finland

Authors

• Kaisa Kallio
• Heidi Falkenbach Real Estate Research Group, School of Engineering, Aalto University, P.O. Box 14100, FI-00076 Aalto
• Kauko Viitanen Real Estate Research Group, School of Engineering, Aalto University, P.O. Box 14100, FI-00076 Aalto

Keywords:

Real estate valuation, commercial property market, real estate service

Abstract

The objective of this paper is to ascertain how real estate valuation service developed in Finland from the late 1980’s till the end of 2007 and which factors contributed to this development. The discussion is based on literature review and in-depth interview study with 29 long-term professionals of the Finnish real estate field. This study suggests that the development of real estate valuation service in Finland can be divided into four periods in which valuation has been by its nature and business environment different. These periods include the economic boom of the late 1980’s, the recession period, the recovery of the economy and the time of internationalisation. During these periods commercial real estate valuation service developed to professional business. This article discusses the development of real estate valuation service from the viewpoints of valuation business and players, authorized valuers’ system, standards for valuation and financial reporting as well as some other development aspects of real estate valuation such as valuation document and methods.