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The capitalization rate for real estate in 2019 was steady — experts

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  2. / The capitalization rate for real estate in 2019 was steady — experts
15.02.2020

The average value of the capitalization rate* for second homes for the entire year was equal to 7,5%. In the first quarter it was the lowest — 7,0%, in the second increased to 7.3% in the third and fourth were equal to 7.5%. This is evidenced by the GIS "UVECON".

The minimum value capitalization rates all the four quarters remained unchanged at 1.5%, and the maximum in the first, second and fourth equal to about 20.0%, and the third to 19.9%.

For office premises the average value of the capitalization rate in the country for the 2019 was equal to 12.5%. The quarterly rate increased — from 11.9% in the first quarter to 12.5% in the fourth.

The minimum and maximum values of capitalization and for the year, and for each of the four quarters remained unchanged at 4.0% and 21.0%, respectively.

The average value of the capitalization rate of commercial real estate in the country for the year was 12.9%. The lowest indicator was in the first quarter to 12.5%. In a second he had risen to 13.2% and the third decreased to 13.1% in the fourth-to 12.9%.

In the segment of industrial and warehouse property average value of the capitalization rate in the country amounted to 12,8%. From the beginning, the rate increased from 11.6% in the first quarter to 12.2% in the second and to 12.8% in the third. In the fourth quarter, the value remained at the level of the previous period is 12.8%.

The minimum value of the rate during the year and for all four quarters was equal to 3.2 per cent. The high for the year was 24.9%. In the first quarter, the cap rate was 25.0% and in the second 24,9%, in the third of 25.0% and 24.9% in the fourth.

*The size of the "capitalization Rate" is calculated for such segments as "secondary housing", "office", "commercial" and "industrial-warehouse real estate, in terms of its dimension and geographical location. The value of the capitalization rate is calculated using the market extraction method. The input data to build the analysis model is "clusterseven" geography, type, functional purpose and dimension of real estate data array of ads for the sale and rental of facilities. The calculation algorithm based on the construction of variational series and involves the application of corrective coefficients: "drift rates", "trade", "filling".

Source: propertytimes

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