Which assessment method is primarily focused on investment returns from property?

The Income Approach is primarily focused on investment returns from property because it assesses the value of real estate based on the income it generates. This method calculates value by analyzing the potential revenue stream a property can produce, typically through rental income, and factoring in operating expenses and capitalization rates to determine the net present value of the income.

Investors and appraisers often use the Income Approach for properties that are expected to generate income, such as commercial buildings, apartments, and rental properties. By concentrating on the income-producing ability of the property, this method helps in understanding how well an investment will perform financially.

Other methods, like the Cost Approach, focus on the cost of constructing the property or replacing it, while the Sales Comparison Approach relies on the prices of comparable properties that have sold recently. The Residual Method, which is a variant of the Income Approach, is used for development properties and involves estimating the value of a property based on its potential to generate income after accounting for development costs. However, it is the Income Approach that is directly tied to valuing property specifically by its investment returns.