reaaliarvosta

Reaaliarvosta is a Finnish term used in finance and property valuation to describe the process of estimating the current market value of real assets, such as land, buildings, and equipment. It refers to assessing the true or “real” value of an asset for purposes such as financial reporting, taxation, financing, insurance, and transactional decision making. The term can be used for both the act of valuation and the valuation result.

Valuation typically relies on three broad methodological approaches. The market approach uses prices from comparable assets recently traded or listed. The income approach analyzes expected future income streams from the asset, applying discounting or capitalization to convert those flows into present value. The cost approach estimates how much it would cost to replace or reproduce the asset, adjusting for depreciation and obsolescence. In practice, valuers select methods based on asset type, data availability, purpose of the valuation, and current market conditions.

Valuations are usually carried out by qualified professionals such as licensed appraisers, surveyors, engineers, or accountants specializing in valuations. A valuation report describes the asset, data sources, chosen methodology, key assumptions, and any uncertainties or limitations. Standards and requirements vary by jurisdiction and purpose, with many valuations aligned to international or national guidelines.

Limitations of reaaliarvosta include the quality and relevance of data, market liquidity, and model risk. The results support decisions in real estate investment, collateral assessment for lending, lease negotiations, property taxation, and insurance planning.

See also: Real estate appraisal; Fair value; Asset valuation; IFRS fair value measurement.