Methodological Integration between property market cycle and valuation process.Extended cyclical capitalization models

The dividend discount model (Gordon M. The investment, financing and valuation of the corporation. Irwin, Homewood, 1962; Gordon M, Shapiro E. Manag Sci, 102–110, 1956, October) is widely accepted among professional and academician as a further approach to capitalization. Although the explicit growth modelling is normally applied both for property valuation and assessment of worth, the model is procyclical creating problems in the upturn and downturn of the market (Born and Pyhrr 1994). In this paper, four further cyclical capitalization models are proposed to be applied to a wider group of property valuation cases such as the so-called cyclical assets (International Valuation Standard Council. International valuation standards, 2020).