TITLE:
The Applicability of the Maximum Global Utility Method in the Activity of the Real Estate Consulting Service
AUTHORS:
Svetlana Albu, Maria-Liliana Marian
KEYWORDS:
Real Estate Market, Efficiency, Commercial Real Estate, Best Use
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.12 No.11,
October
31,
2022
ABSTRACT: The
real estate sector is vital for ensuring human needs for living and activity.
This fact conditioned the formation of a legal, normative and methodological
framework specific to real estate, but also the investment attractiveness of
the field. Thus, the real estate consultant often solves technical, economic,
legal, organizational problems, but the biggest responsibility rests with
investment consulting. The applied methodologies, focused on evaluating the
efficiency of investments, are not sufficient to propose to the investor a
reasoned conclusion regarding the investment priority. In this article, the
authors propose a useful tool for real
estate consultants in order to reason the decision regarding the
investment of funds in commercial real estate for the purpose of renting it out—the
Maximum Global Utility (MGU) method. It is proposed to include in the analysis
and the way of calculating the indicator “importance level of the real estate”
which reflects the criterion of the best use. This indicator ensures the
flexibility of the decision depending on the quality characteristics of the
real estate.