"What is the value of a house or a good in general?"
According to the definition provided by the classical economists of the 18th and 19th centuries, it concerns the amount of human working time that took to manufacture it. However, in the opinion of the so-called Marginal Utility School, the value should coincide with utility. And then there are the neoclassical economists who, in the second half of the 19th century, came forward with the theory that, in fact, it is the market and thus the price that determines the value.
It is only fitting that Head Global Real Estate Claudio Saputelli and Chief Economist Switzerland Daniel Kalt take the readers on a journey across time on the editorial for this year's edition of UBS Real Estate Focus, to gather different concepts with regard to value and therefore better illustrate the subject of real estate valuation.
"These considerations show that a distinction must be made between the concepts of value and price. Especially in the real estate market, the price paid deviates greatly from its estimated value depending on the market situation."
The full annual property market study by UBS Switzerland is available here.