Valorization

Valorization is an increase in the monetary equivalent of an object (in real estate in particular), at the moment of transfer of ownership of it from the state to private hands. In Russia, this process has become a new phenomenon after two waves of privatization. Most often it concerns real estate: shopping centers, residential complexes, office buildings, land plots. Buyers of apartments, office space and other types of space receive not just a “bare” object, but also its value, since most of it is the sum of the market value. Accordingly, the higher the valorization of the object, the higher its value, which the parties fixed in the purchase and sale agreement.

In fact, it can be characterized as an increase in the market value of an object during the period of time between the purchase and sale transaction. This may be due to both the growth of the assets themselves (the cost of the entire