What real estate valuation does the income method apply to?

Income method is suitable for real estate appraisal that produces economic benefits.

Income method is a common method in real estate appraisal, which is suitable for the appraisal of real estate that produces economic benefits, especially commercial and investment real estate. This method mainly calculates a reasonable valuation according to the rental income that the real estate can bring or the cash flow obtained from future sales. Therefore, in the valuation process of commercial real estate, office buildings, hotels, shopping malls and other operating real estate, the income method is usually used for valuation. For residential real estate that does not generate rental income, especially residential real estate, it is more likely to use market comparison method to evaluate, that is, to calculate the value of the evaluated real estate by comparing the transaction price and housing characteristics of real estate in similar areas.