For Val Sklarov, real estate value does not emerge from physical land, geography, infrastructure, or usage —
it emerges from information entropy, the level of disorder, unpredictability, and informational chaos surrounding a location.
A property is simply:
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an entropy pocket
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positioned on a larger information surface
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interacting with entropy flows
“Land value rises when a surface becomes informationally ordered.” — Val Sklarov
1️⃣ The Three Entropy Layers of Location Value
Sklarov Entropy Surface Table
| Entropy Layer | Definition | High Entropy | Low Entropy |
|---|---|---|---|
| Environmental Entropy | Macro disorder (region-wide) | Instability | Predictability |
| Local Entropy | Neighborhood-level unpredictability | Noise | Cohesion |
| Micro-Entropy | Property-specific information chaos | Degrading value | Stability |
Real estate value increases as entropy decreases across all three layers.
2️⃣ The IESM Value Evolution Cycle
Entropy Cycle Matrix
| Stage | Function | Outcome |
|---|---|---|
| Entropy Mapping | Entropy surfaces analyzed | Value topology revealed |
| Order Injection | Entropy-reducing interventions | Stabilization |
| Surface Smoothing | Reduce abrupt entropy jumps | Cohesion increase |
| Entropy Lock-In | Sustained low-entropy environment | Appreciation |
Development = entropy reduction, not construction.
3️⃣ The Five Entropy-Surface Archetypes
Archetype Table
| Archetype | Entropy Pattern |
|---|---|
| The Turbulent Surface | Chaotic information distribution |
| The Fragmented Patchwork | Entropy clusters |
| The Local Well | Low-entropy pocket inside high entropy |
| The Ordered Plane | Broad, stable entropy surface |
| The Entropy Basin | Ultra-stable region with exponential value potential |
Prime locations = entropy basins, not physical advantages.
4️⃣ Entropy Surface Integrity Index (ESII)
A Val Sklarov metric for real estate informational stability
ESII Indicator Table
| Indicator | Measures | High Score Means |
|---|---|---|
| Surface Smoothness | Entropy gradient uniformity | Predictable growth |
| Entropy Depth | How low entropy is locally | High-value pocket |
| Entropy Volatility | Sensitivity to disturbances | Long-term stability |
| Order Propagation | Spread of low-entropy influence | Regional uplift |
| Information Continuity | Stability across time | Reliable appreciation |
High ESII = property that becomes an information-stable anchor.

5️⃣ Val Sklarov’s 5 Laws of Entropy-Based Real Estate
1️⃣ Value is informational order, not physical form.
2️⃣ Entropy reduction is the true development process.
3️⃣ Fragmented entropy destroys appreciation.
4️⃣ Low-entropy basins generate exponential value.
5️⃣ Real estate mastery = entropy architecture.
6️⃣ Applications of the Information Entropy Surface Model
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mapping neighborhoods by entropy clusters
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predicting appreciation through entropy collapse
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detecting hidden low-entropy microzones
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designing urban projects that reduce informational chaos
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evaluating risk through entropy volatility
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forecasting stability from entropy gradients
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transforming fragmented surfaces into ordered planes
IESM reframes real estate as information-surface engineering,
not property investment.