1. How to calculate the market value of a completed asset? 

Different approaches are utilized depending on the characteristics of the asset such as:

• Market Comparison approach
• Asset Valuation approach
• Capitalization Rate approach
• Income approach

2. How to discount the developer’s profit?

• It requires forecasting and modeling of the expected sales cycles of the project. The associated cash flows will be discounted at a Discount rate which will be the risk-free cost of capital + risk premium associated with the project.

3. I have a land and I have just applied for building rights, can I use GDV-based valuation?

• No, in this case just getting the right to undergo/pursue the development is a negligible effort compared to the entire development, hence valuation should/must be computed as Land value + cost incurred for application.