The income approach step by step: what is an apartment building worth?

Apartment buildings, mixed-use buildings and commercial properties are usually valued with the income approach (§§ 27 et seq. ImmoWertV). In about four minutes, this video works through an example step by step – from gross income to income value – and shows how strongly the capitalisation rate influences the result.

What you will learn in the video

• Building blocks: gross income, operating costs, capitalisation rate and remaining useful life (§§ 4, 21, 31, 32 ImmoWertV).
• Worked example: 100,000 € gross income, 80,000 € net income, 65,000 € net income of the building × present value factor 23.11 plus 500,000 € land value – approx. 2 million €.
• Sensitivity: With a capitalisation rate of 3.5 % instead of 3 %, the value in the example falls to approx. 1.8 million €.
• Market value: market adjustment via the capitalisation rate, special property characteristics as premiums or discounts, plausibility check with income multipliers.
• In practice: have leases, the tenant list and service charge statements ready – rules of thumb do not replace a valuation.

Legal basis and sources (as of 9 October 2026)

• §§ 27, 28 ImmoWertV – income approach
• § 31 ImmoWertV – net income, gross income
• § 32 ImmoWertV – operating costs
• § 21 ImmoWertV – capitalisation rates
• § 34 ImmoWertV – present value factor
• Section 194 BauGB – market value

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not legal, tax or investment advice and does not replace an appraisal of your property. Examples are simplified.