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PurposeThe purpose of this paper is to introduce the significant role that brand, beauty and utility play in defining property value.Design/methodology/approachBeyond introducing the idea that property value is composed of brand, beauty and utility, the factors that comprise these three components of property value are explored. The relative contributions that brand, beauty and utility make to understanding the source of property value are examined through empirical research evaluating the perceptions of the relative contributions that each of these three factors make to property value, based on the analysis of data on some 55 single family residential properties drawn from throughout the world.FindingsThe findings explain reasons why certain properties command premium prices, relative to other properties. As commerce prioritizes branding in merchandising generally – and especially for luxury goods – that brand would assume a growing significant role in property markets is not surprising.Originality/valueThese findings challenge traditional thinking and introduce a new, powerful explanation of the source of property values.

Purpose -A central consideration in real estate is the analysis of those factors that impact upon value, in particular how value is created in real estate development and investment deals. The converse of understanding how real estate value may be destroyed is equally important. The paper seeks to argue that a better understanding of these processes would allow more informed and successful decisions to be made in structuring investments and evaluating performance. Design/methodology/approach -An innovative web-based survey tool was employed. The paper analyses expert opinion based on a sample of 97 real estate professionals from North America and Europe. Those issues that can impact on the creation and destruction of value in real estate development and investment projects and their relative magnitude of impact are assessed. Findings -There is no apparent distinction between those factors that create value and those that destroy value, though there are variations in the magnitude of impact. Idea/concept is the major influence for development projects and is even more pronounced for real estate investment. Perception/recognition of the opportunity is a key driver of value. Research limitations/implications -Limitations arise from the response rate which allows an upper tier of analysis across the entire data set but is not of sufficient size to disaggregate either by respondent professional group or by geographical region. Originality/value -Although the objective of real estate development, investment and deal making is value creation, there is, paradoxically, little literature about creating value. This paper is the first study to elicit opinion internationally on the subject and to quantify the relative contribution of a range of factors concerning value creation and destruction in a real estate project.