Glossary

The ageing curve of a building element describes the ageing process, the change in state of a building element over time. Every building element has a specific ageing curve depending on the type and quality of the building element.

The ageing process of buildings is a complex matter. On the one hand, the condition deteriorates over time and on the other hand the requirements for utilization, comfort and technical installations are subject to change.

The state of repair can refer to a building element, a building or a building portfolio. This depends not only on the age, but also on whether the rules of architecture were complied with, how much stress the building is exposed to and how effectively the building is maintained.

Building elements are the components which make up a building. They can be classified as different types of building elements depending on their properties. The most important properties are function and life cycle.

The function and life cycle of building elements are by no means constant in practice. Building element quality comprises not only the measure of functionality but also the design implementation, the durability of the materials used, the interplay with other building elements and correct installation.

The building insurance value is determined by the building insurer. Although this value should correspond to the reconstruction value, this is frequently not the case.

A real estate strategy describes a frame of action that promotes target oriented and effective decision making and action. It covers topics such as totality, a holistic approach, durability, economic efficiency, sustainability, measurability and management.

Investment behaviour is based on the objectives for a building or an entire real estate portfolio. A basic distinction is made between maintenance and renewal, replacement, management for demolition and sale. The delaying of repair measures (saving) belongs in the category of management for demolition.

The remaining useful life is the time up to the economically ideal time for repair. Assessment of building elements is performed to determine this time period as accurately as possible. This requires an on-site inspection, specialized knowledge and great experience.

Strategic investment planning is the prerequisite for successful long-term management of real estate. It is based on the real estate strategy and an overview of the required investments over the next few years.

Maintenance of buildings comprises all measures that serve to prolong the life cycle. Running expenditures correspond to the maintenance expenditure, planned expenditures correspond to the repair expenditure.

The reconstruction value of a building corresponds to investments that have to be made if a building would have to be newly constructed today with the original characteristics. This variable serves as a basis for cost calculations. It does not include value adding investments.

The time at which the function of the relevant repair costs per time unit reaches a minimum is defined as the economically ideal time point. Consequently, repairs before or after this time point generate increased costs.

The present state value corresponds to the reconstruction value reduced by the ageing factor. A decreasing present state value reduces the value of a building and leads to a decrease in the utilization quality.