CAPITALIZATION RATE FOR LANDS IN LARGE CITIES OF UKRAINE: APPROACHES TO THE DEFINITION OF SPATIAL HETEROGENEITY.

The article deals with the concept of "capitalization rate" as a key parameter in assessing the value of urban land. A comparative analysis of definitions and methodological approaches to determining the rate of capitalization of rental income for urban land in accordance with International standards of valuation and national legislation of Ukraine is given. It is shown that the capitalization rate is a key indicator in modeling the estimated value of land, as the results of the assessment tend to show high sensitivity to it. It is proved that the rate of capitalization of rental income for land plots can vary not only in regard to the financial market conditions and the risks of economic activity that are relevant for region or country, but also even within a city territory, reflecting the spatial heterogeneity of the local risks of real estate investments, as well as natural and technogenic risks. [ABSTRACT FROM AUTHOR]