Abstract
The reconstruction of buildings generally prolongs their useful life, increases their utility value, and last but not least, leads to an increase in their value. These assumptions only apply if an independent third party reaches the same conclusion together with the owner. However, the undesirable effect of the reconstruction of a building may be a decrease in its value. The aim of this contribution is to determine the change in value of an older sample building assessed in the included case study as a result of its reconstruction. Valuation methods are applied, which, as it turns out, reveal the inaccuracy of the subjective view of the person who reconstructed the building. The resulting change in the value of the sample building is discussed from the point of view of the applied valuation methods and other value-creating aspects (subjective view of the owner on the value of the building, historical value of the building, etc.). The contribution concludes with recommendations for maximizing the increase in value of a property through its reconstruction so as to eliminate the risk of a decrease in its value.
Highlights
The reconstruction of property is one of the most common forms of construction and development works
The resulting change in the value of the sample building is discussed from the point of view of the applied valuation methods and other value-creating aspects
The aim of this paper was to determine the change in value of a sample building after reconstruction
Summary
The reconstruction of property is one of the most common forms of construction and development works It is topical and the need is constantly growing. The need to address such efforts, which usually take on the form of government initiatives to save energy, often run into resistance from, or leads to conflicts with owners because of the high costs, low benefits, and long return periods for green retrofits. This is a global problem, as demonstrated by Pimonenko et al [7] and Kasych and Vochozka [8]
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