Direct capitalisation
Commercial property & real-estate term
A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the income estimate by an appropriate rate or by multiplying the income estimate by an appropriate factor.
Part of the Commercial Property glossary — plain-English definitions of the terms you meet when leasing, buying or selling commercial space in South Africa. See also our how-to guides.
More terms under “D”
Debt coverage ratio (dcr) Decentralised Discounted cash flow analysis Deferred interest Date of appraisal Due diligence Deterioration Distressed property