Property performance indices have invariably focused upon prime markets with a variety of approaches used to measure investment returns. With urban policy driven by the sustainability agenda, increasing attention is being placed on the re-use of existing sites and brownfield land. However, there is relatively little knowledge regarding the investment performance of property in regeneration areas. Indeed there is a perception that such locations carry increased risk and that the returns achieved may not be sufficient to offset the added risk. As a consequence major institutional funds have tended to by-pass urban renewal areas in favour of prime markets for which there is much greater information transparency. This paper presents the findings of recent research within the UK on property market performance in regeneration areas and draws comparisons to prime market locations. The paper discusses methodological issues and problems regarding the development of an urban regeneration index focusing on a beacon approach.

"Through history there has on a number of occasions arisen a demand for something more stable than the market value of a property. The most recent attempt is the concept Mortgage Lending Value, proposed by the European Mortgage Federation. This concept has been criticized in an article by Crosby, French and Oughton, and they argue that the concept is useless as it cannot be measured in any objective way. The reason is that the concept includes problematic terms like ""sustainable"", ""prudent"" and ""non-speculative aspects"". They propose that the concept of Market Worth should be used instead. In this paper it is argued that the concept market worth also is very problematic, as the valuer must judge what the price would be if the market were efficient. Instead it is argued that the current market value should be put in perspective by a more systematic presentation of information of the past development of the specific market. How has the value developed? How does the level of rents, yields and values compare to historical values? Presentation of this kind of information can reduce the risk of ""irrational exuberance"", and presenting this type of information is something that the valuer can do without having to know more about the future than ""the market""."

Guidance Note 1 of the Red Book (RICS, 2003) states that the valuation of an operational entity includes four components: the land and buildings; the trade fixtures and fittings; the trading potential, excluding personal goodwill; and the benefit of any transferable licenses and consents. While four separate components of value are identified, the market value figure reported to the client is invariably a global sum, which is not disaggregated. However, values may need to be apportioned for a number of reasons, most notably for stamp duty and balance sheet purposes. Accounting changes in recent years have increasingly recognised the importance of intangible assets such as intellectual capital and goodwill. Similarly, recent tax changes demonstrate the governmentÌs acceptance of the importance of such items in achieving and maintaining business competitiveness. This paper has two key objectives: first, to analyse the application of the Red Book to traderelated valuations, paying particular attention to the treatment of goodwill and second, to critically evaluate the accounting treatment of goodwill and in particular the application of Financial Reporting Standard 10. In order to understand the workings of the market, the corporate hotel sector was used a case study. The key findings of the research are that valuers expressed considerable unease with the apportioning of market value between tangible assets and goodwill, There was no consensus on how (or if) goodwill could be measured reliably. Second, that the valuation methods adopted are, to a degree, na‘ve. While explicit changes are made to the cashflow projections, there is insufficient appreciation of the changing risk profile that might lead to an adjustment to the earnings multiplier. The accounting difficulties and inconsistencies concerning goodwill arise largely because of inadequate valuation methods. Recent tax changes also point to the need for a robust and defendable valuation methodology. Application of one such theoretically sound approach to valuing goodwill (the bridge model) is illustrated in this paper. While the research focused on the corporate hotel sector, the findings have wider implications for other sectors of the market where operational entities are valued with regard to their trading potential.

The purpose of this paper is to estimate the elasticity of capital - land substitution in the housing construction sector of Ankara, which is the capital city of Turkey and a rapidly urbanized city. The theoretical basis of our study is the housing production models, which use the basic concept of elasticity of substitution between land and non-land factors in order to explain the land-use pattern of cities. Using a variable elasticity of substitution (VES) production function and cross-section data, the paper provides new information to compare the long term housing supply elasticity of Ankara with that of the US and the UK cases. Elasticity of capital Ò land substitution for Ankara (from 0.49 to 0.95) is found to be similar to that of American empirical studies, which range from 0.5 to 1.13 and it is more elastic than the UK case studies of the Bristol (0.18) and Cambridge (0.23) housing markets. The paper also discusses the spatial differentiation of elasticity of substitution within the city in order to explain the spatial structure of the housing market in the long run.