Real Estate Valuation Approaches

This question tests a candidate’s understanding of the core valuation methods used in real estate private equity. Interviewers ask it to see whether you can think like an investor and compare the logic behind income based valuation, market based valuation, and cost based valuation, as well as understand when each method is most useful. It also checks whether you know how real estate valuation differs from corporate valuation and why factors such as cash flow, market transactions, and replacement economics matter in assessing asset value.