The primary objective of this thesis is to estimate the market value of residential unit in Prague. The main valuation method is comparative method. Value estimated on this basis is then compared to the value determined based on the income approach (Direct capitalization method). The differences in the results found in valuation on the basis of selected approaches are presented in the last part of the thesis as well as explanation in what cases it is preferable to use the particular approach. The theoretical part of the thesis contains basic concepts of property valuation. The other theoretical chapters summarize the basic legal legislation in this field and real estate valuation methodology. In the practical part of the work, the valuation of the specific real estate (housing unit in Prague) realized.