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Investment value is the value of a property to a particular investor. In the U.S. and U.K., it is equal to
market value Market value or OMV (Open Market Valuation) is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with ''open market value'', ''fair value'' or ''fair market value'', although the ...
for the investor who has the capacity to put the property to good use—its highest-and-best-use, its most valuable use. For other investors with limited capacity or vision, investment value is lower because they cannot put the property to use in a way that is maximally productive.


International Valuation Standards

The current edition of International Valuation Standards (IVS 2011) defines Investment Value in a way which allows for either a higher value than market value or a lower value than market value: :Investment value - the value of an asset to the owner or a prospective owner for individual investment or operational objectives. ''International Valuation Standards 2011'' Investment Value is a subjective measure of value, a 'value-in-use', whilst
Market Value Market value or OMV (Open Market Valuation) is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with ''open market value'', ''fair value'' or ''fair market value'', although the ...
is an objective 'value-in-exchange'. As defined in IVS2, Investment Value is the valuation equivalent of the
accountancy Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "language ...
concept of Value-in-use. Whereas IFRSs define the accountancy concepts of fair value and Value-in-use in operational terms, IVSs define Market Value and Investment Value by way of generalised definitions.


References

{{DEFAULTSORT:Investment Value Real estate valuation Valuation (finance) Real estate investing