In SEE markets, where data transparency can vary significantly (and is sometimes very limited), the difference between something that is technically correct and something trustworthy usually comes down to a few key factors:

• How strong and reliable the market data used in the report is
• How understandable the assumptions are
• Whether different scenario analyses are considered in the report
• Whether the work is aligned with recognised professional standards

The key is to base the study on real market evidence. When assumptions, risks, and projections are clearly linked to real-world data and experience, clients and lenders are much more comfortable moving forward with a project. This is what makes a valuation credible.

Comparable market data must be reliable

Direct comparables are often limited in SEE markets. Reliable transaction data can be difficult to obtain, and transparency is not at the level seen in Western Europe. This is often where experienced valuers stand apart. In practice, this means focusing on:

• Collecting transaction and lease evidence, operating performance data, and industry benchmarks
• Analysing potential income ranges and testing different scenarios
• Using the cost approach as a reality check for capex and replacement cost
• Defining exit assumptions based on real market behaviour

The goal is always the same: to demonstrate that investment projections are built on real and defendable market evidence.

Assumptions must be transparent

Everyone reading the report should be able to understand how key numbers and assumptions were derived. When assumptions are unclear, confidence drops quickly, and that can endanger the entire project. Strong reports clearly explain:

• How market prices were derived
• How assumptions were formed
• Yield and discount rate rationale
• Project timeline (permits, utilities, construction stages)

The logic should be clear enough that any reader, regardless of technical background, can follow how conclusions were reached.

Liquidity and exit strategy must be realistic

Liquidity and the exit strategy are something that is not discussed often in the SEE region. However, this is where local market experience becomes critical. Key questions here include:

• What is the actual product, and who is it intended for
• What financing is realistically available
• Which regulatory and compliance constraints apply

Every project is different. If liquidity and exit are not properly analysed, assumptions may look reasonable on paper but fail to reflect real market behaviour.

Feasibility Study and Highest-and-Best-Use

Feasibility analysis is where real estate valuation turns into an actual development roadmap. Strong feasibility analyses normally include:

• Construction and sales scenarios
• Debt modelling where financing is involved
• Operational analysis

Highest and Best Use analysis focuses on identifying the most productive investment approach, taking into account physical, legal, and financial constraints, supported by market data and scenario testing. In practice, the challenge is proving the concept with evidence.

What banks actually want to see

In most approval processes, banks typically look for:

• Clear evidence supporting every assumption
• Scenario ranges and sensitivity testing
• Capex scope clarity, contingency logic and responsible allocation
• Realistic and clearly defined timeline
• A reasonable story from concept through delivery, stabilisation and exit

This is what defines projects that successfully secure financing.

Practical takeaways from real projects

From our experience, lenders consistently value the following:

• Defendable ranges over single-point estimates. Real projects cannot be predicted with absolute precision. Scenario ranges are more realistic and easier for lenders to assess.
• Assumptions aligned with market evidence. Market reality and investor expectations do not always match. Lenders rely on what the market is actually showing, not on optimistic projections.
• Early identification and mitigation of risks. Highlighting risks early and showing mitigation strategies significantly reduces issues later in the project lifecycle.

At Adriatic Advisors, we work with investors, developers, and lenders across the SEE region on valuation and feasibility studies based on real market data and professional experience. If you are looking to successfully secure financing or need valuation and feasibility reports to support internal decision-making, feel free to contact us.

Adriatic Advisors’ work is performed by licensed valuers holding national valuation licences, REV and RICS certifications, ensuring full alignment with both international and local professional standards.