Engineering Economics - Real Estate Asset Valuations – Study Of Econometrics - Cost (To) The Capacity Method (C2c)

Abstract

Real Estate field is a major business spread all over the world in sub-sects namely Commercial/Residential Buildings, Hospitality & Tourism Development, Infrastructure, and all commercial trading assets of millions of dollars annually.The scale of growth of infrastructure determines signals of economic development of the nation.In this fast-moving world, time plays a crucial role in the decision-making process.Sooner the completion of any decision-making process push the asset into operational or utility mode. Several tools are available ready reckoning, but few of them must follow a scientifically proven basis.Normally current cost computation is an immediate requirement to extend negotiations in trading. Cost to capacity is an old concept following mere interpolation of assets of similar capacity in different brands makes it easier to presume the precedent/succeeding pricing according to the case. In absence of data, for example, 3 BHK market value can be determined by the available 1 BHK cost, not by interpolation. Cost based capacity method of estimation of an asset’s current cost is an organised scientific tool based on certain assumptions justifiable with reasoning thereon managing all drawbacks using technical supporting services for infrastructure growth. This is a somewhat older technic but followed as a thumb rule which is an approximate computation. Despite this, capacity factor estimates can be quite accurate and are often used to support decision-making at the pre-design stage of a project. IVSC 2022 mentions some basic notes related to Machines whereas attempts made to adopt THE  same ideology as applicable to building & other infrastructures