Accuracy of the German income approach in comparison to German DCF valuations

The traditional German Income Approach (GIA) is often criticised for resulting in smooth and stable estimations of value that do not adequately represent market movements. So far, empirical evidence has been scarce. The first part of the analysis consisted of a direct comparison of actual valuations and sale prices according to GIA and DCF models in Germany. The second part of the analysis used hedonic regressions to derive fitted sale prices...