Valuation & Investment
Capitalization Rate (Cap Rate)
Short Definition
Ratio of annual net operating income to property value, indicator of expected return, higher means greater return but higher risk.
In Other Languages
Arabic
معدل الرسملة
نسبة صافي الدخل التشغيلي السنوي إلى قيمة العقار، مؤشر للعائد المتوقع، أعلى يعني عائد أكبر لكن مخاطر أعلى.
English
Capitalization Rate (Cap Rate)
Ratio of annual net operating income to property value, indicator of expected return, higher means greater return but higher risk.
Turkish
Kapitalizasyon Oranı
Yıllık net işletme gelirinin mülk değerine oranı; beklenen getiri göstergesi, daha yüksek olması daha büyük getiri ancak daha yüksek risk demektir.
Related Terms
Income Approach
Valuing property based on its income generation capacity, used for investment properties like offices, shops, and rental residential buildings.
Rental Yield
Ratio of annual rental income to property value, important indicator for evaluating real estate investment viability, calculated as percentage.