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There are two fundamental value concepts: Market value and Investment value or Worth (IVSC 2019 , p. 17). Investment value is a rather uncomplicated concept as it simply refers to the value from a specific owner's/investor's perspective. This is calculated by a standard investment analysis in the form of a cash‐flow analysis. The inputs are then expected net operating income from that actor's perspective and the rate of return this actor demands and the expected residual value at the end of this actor's expected holding period. Such a residual value is normally calculated from the expected net operating income at the end of the calculation/holding period.

Market value is important in a number of different contexts, e.g. when transactions are made, when property is used as collateral for lending and in financial reports. The fact that this value concept is so important, and as will be clear below, rather complicated, it is important to look closer at the definition of this concept. A number of aspects will be covered in this chapter, but value concepts will also be discussed in Chapter 5, and in Chapter 6. In Chapter 6 the concept of Fair value and its relation to market value will be discussed. It could also be useful to be aware of the distinctions between entry price and exit price explained in that chapter, where entry price at the date of a transaction is what has been paid and exit price what could be fetched if the property is sold at that date.

There are also other economic (value) concepts than market value and investment value that may be relevant in different situations. Examples of such value concepts are acquisition cost/‐value, replacement cost/‐value or long‐term values of different kinds. We will further discuss such value concepts in Chapters 5 and 6.