Calibration of impact of attributes in the real estate mass appraisal

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Krzysztof Dmytrów ◽  
Wojciech Kuźmiński
Keyword(s):  
Real Estate ◽  
Design Methodology ◽  
Hybrid Approach ◽  
Calibration System ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Hybrid Approaches ◽  
Residential Properties ◽  
Statistical Approaches

PurposeOur research aims in designation of a hybrid approach in the calibration of an attribute impact vector in order to guarantee its completeness in case when other approaches cannot ensure this.Design/methodology/approachReal estate mass appraisal aims at valuating a large number of properties by means of a specialised algorithm. We can apply various methods for this purpose. We present the Szczecin Algorithm of Real Estate Mass Appraisal (SAREMA) and the four methods of calibration of an attribute impact vector. Eventually, we present its application on the example of 318 residential properties in Szczecin, Poland.FindingsWe compare the results of appraisals obtained with the application of the hybrid approach with the appraisals obtained for the three remaining ones. If the database is complete and reliable, the econometric and statistical approaches could be recommended because they are based on quantitative measures of relationships between the values of attributes and properties' unit values. However, when the database is incomplete, the expert and, subsequently, hybrid approaches are used as supplementary ones.Originality/valueThe application of the hybrid approach ensures that the calibration system of an attribute impact vector is always complete. This is because it incorporates the expert approach that can be used even if the database excludes application of approaches that are based on quantitative measures of relationship between the unit real estate value and the value of attributes.

Multicriteria analysis and genetic algorithms for mass appraisals in the Italian property market

2018 ◽  
Vol 11 (2) ◽  
pp. 229-262 ◽  
Author(s):  
Pierluigi Morano ◽  
Francesco Tajani ◽  
Marco Locurcio
Keyword(s):  
Genetic Algorithms ◽  
Real Estate ◽  
Polynomial Regression ◽  
Real Estate Market ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Multi Objective ◽  
Evolutionary Polynomial Regression ◽  
Residential Properties

Purpose This paper aims to test and compare two innovative methodologies (utility additive and evolutionary polynomial regression) for mass appraisal of residential properties. The aim is to deepen their characteristics, by exploring the potentialities and the operating limits. Design/methodology/approach With reference to the same case studies, concerning samples of residential properties recently sold in three Italian cities, the two procedures are tested and the results are compared. The first method is the utility additive, which interprets the process of the property price formation as a multi-criteria selection of multi-objective typology, where the selection criteria are the property characteristics that are decisive in the real estate market; the second method is a hybrid data-driven technique, called evolutionary polynomial regression, that uses multi-objective genetic algorithms to search those models expressions that simultaneously maximize accuracy of data and parsimony of mathematical functions. Findings The outputs obtained from the experimentation highlight the potentialities and the limits of the two methodologies, as well as the possibility of jointly applying them to interpret and predict the real estate phenomena in a more realistic representation. Originality value In all countries, mass appraisal techniques have become strategic for the definition of management and enhancement policies of public and private property assets, in the case of investments of technical and economic refunctionalization (energy, environment, etc.), and for the alienation of buildings no longer suitable for public needs (military barracks, hospitals, areas in disuse, etc.). In this context, the use of mass appraisal techniques for residential properties assumes a leading role for sector operators (buyers, sellers, institutions, insurance companies, banks, real estate funds, etc.). Therefore, the results of the applications outline the potentialities of the two methodologies implemented and the opportunity of further insights of the topics that have been dealt with in this research.

Information security in the South Australian real estate industry

2014 ◽  
Vol 22 (1) ◽  
pp. 24-41 ◽  
Author(s):  
Deepa Mani ◽  
Kim-Kwang Raymond Choo ◽  
Sameera Mubarak
Keyword(s):  
Risk Management ◽  
Information Security ◽  
Real Estate ◽  
South Australia ◽  
Security Threats ◽  
The South ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector

Purpose – Opportunities for malicious cyber activities have expanded with the globalisation and advancements in information and communication technology. Such activities will increasingly affect the security of businesses with online presence and/or connected to the internet. Although the real estate sector is a potential attack vector for and target of malicious cyber activities, it is an understudied industry. This paper aims to contribute to a better understanding of the information security threats, awareness, and risk management standards currently employed by the real estate sector in South Australia. Design/methodology/approach – The current study comprises both quantitative and qualitative methodologies, which include 20 survey questionnaires and 20 face-to-face interviews conducted in South Australia. Findings – There is a lack of understanding about the true magnitude of malicious cyber activities and its impact on the real estate sector, as illustrated in the findings of 40 real estate organisations in South Australia. The findings and the escalating complexities of the online environment underscore the need for regular ongoing training programs for basic online security (including new cybercrime trends) and the promotion of a culture of information security (e.g. when using smart mobile devices to store and access sensitive data) among staff. Such initiatives will enable staff employed in the (South Australian) real estate sector to maintain the current knowledge of the latest cybercrime activities and the best cyber security protection measures available. Originality/value – This is the first academic study focusing on the real estate organisations in South Australia. The findings will contribute to the evidence on the information security threats faced by the sector as well as in develop sector-specific information security risk management guidelines.

Potential for optimising organisational structures in the technical due diligence for real estate transactions in Germany

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yannis Steffen Oetken ◽  
Christian Hofstadler ◽  
Felix Meckmann
Keyword(s):  
Real Estate ◽  
Transaction Management ◽  
Due Diligence ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Theoretical Approaches ◽  
Transaction Process ◽  
Organisational Structures

PurposeThe individual levels involved in real estate management are thoroughly discussed in the literature. This paper provides a structured meta-analysis of the different theoretical approaches in German-speaking countries. It also investigates the integration of transaction management and technical due diligence into the concepts of organisation theory. In this process, the interfaces are analysed and optimised models are developed for transferring the technical due diligence findings to the operational level.Design/methodology/approachInterviews with transaction management experts were conducted based on a narrative literature review. These interviews shed light on how the components of transaction management and due diligence are integrated into the transaction process, with a particular focus on technical due diligence. They also provide insights into how the related results are taken into account in relation to the transaction, and how they are transferred into the operational phase.FindingsIt becomes apparent that the role of transaction management is not clearly defined and delimited in the structural model of the real estate industry. Technical due diligence findings are usually transferred to the operation of the property via several, manual interfaces with corresponding losses of knowledge. The related models derived and developed for the purpose of operational optimisation define the role of transaction management against a technical background and identify the interfaces to be considered.Practical implicationsThe significance of transaction management for subsequent operations is discussed and elaborated on. More specifically, transferring safety-relevant, high-priority findings from the technical due diligence exercise plays a crucial role for the modelling stage. On the implementation level, the derived models serve as a basis for customising the internal organisational structure.Originality/valueIn Germany, there has hardly been any research into the involvement of technical experts in the real estate transaction process to date. This paper provides initial approaches to optimising organisational structures and sustainably integrating technical due diligence findings into real estate operations.

Vertical integration in the real estate sector: three Swedish case studies

2017 ◽  
Vol 10 (2) ◽  
pp. 195-210 ◽  
Author(s):  
Hans Lind
Keyword(s):  
Real Estate ◽  
Vertical Integration ◽  
Bargaining Power ◽  
Detailed Knowledge ◽  
Extensive Literature ◽  
Production Chain ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector

Purpose The purpose of this paper is to explain why some real estate companies choose to have a vertically integrated structure, instead of specializing in only stage of the production chain. Design/methodology/approach The first stage of the research was an extensive literature review to generate hypotheses. A case study method was then chosen, as more detailed knowledge about the companies were judged to be needed to evaluate the different hypothesis. Documents about the companies were studied and interviews carried out. Findings In the studies cases, there is no support for theories related to vertical integration as a way to monopolize a market and only marginal support for theories that focus on contracting problems related to the so called hold up problem. The most important factors for the companies were that vertical integration gives information and more options that are important in small number bargaining situations. The companies bargaining power increases when they are better informed about, e.g. costs and profits in nearby activities, and when they can use in-house units, if there are problems to find reasonable conditions on the outside market. Research limitations/implications The main limitation is that only three cases were studied. Practical/implications The study can be helpful both to companies that choose to integrate vertically and those that chose not to. There are similar problems related to information and bargaining power that needs to be handled. Originality/value This is the first study that test theories about vertical integration in the real estate sector.

The role of investment property appraisal in European real estate companies

2020 ◽  
Vol 13 (1) ◽  
pp. 105-122
Author(s):  
Juha Mäki
Keyword(s):  
European Union ◽  
Real Estate ◽  
Design Methodology ◽  
Annual Reports ◽  
Real Estate Industry ◽  
Publicly Traded ◽  
Content Type ◽  
The Real Estate ◽  
Practical Implications

Purpose This paper aims to examine the connection between appraisals of investment properties and earnings properties in companies from two perspectives: what kinds of companies employ the most reputable appraisers and how appraisers produce estimations. Design/methodology/approach The research uses annual reports of European Union (EU) publicly traded real estate companies and examines the period 2007-2016. Findings The contribution of this study lies in establishing that some indicators and features of real estate companies affect the choice of appraiser and also in illustrating differences in the results of property valuations. In short, smaller companies with weaker performance are less willing to use external valuation, and external appraisers produce more conservative estimations for investment properties. Practical implications The research produces beneficial information for investors and other stakeholders interested in the real estate industry. Originality/value This is the first novel study to examine the link between appraisals of investment properties and earnings properties in companies in detail.

Real estate money laundering in Austria, Germany, Liechtenstein and Switzerland

2018 ◽  
Vol 21 (3) ◽  
pp. 370-375 ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Real Estate ◽  
Money Laundering ◽  
Qualitative Content Analysis ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Compliance Officers ◽  
German Speaking

Purpose The purpose of this paper is to illustrate how criminals launder money in the real estate business in Austria, Germany, Liechtenstein and Switzerland. Design/methodology/approach A qualitative content analysis of 58 semi-standardized expert interviews with both criminals and prevention experts and a quantitative survey of 184 compliance officers led to the identification of concrete techniques of money laundering in the real estate sector. Findings Real estate companies in German-speaking countries in Europe continue to be extraordinarily suitable for money laundering. In particular, they can be used for placement, layering and integration, combined with violations of the tax code. Most importantly, however, they are the vehicles for one of the very few profitable methods of laundering money. Research limitations/implications As the qualitative findings are based on semi-standardized interviews, these are limited to the 58 interviewees’ perspectives. Practical implications The identification of gaps in existing anti-money laundering mechanisms is meant to provide compliance officers, law enforcement agencies and legislators with valuable insights into how criminals operate. Originality/value While the existing literature focuses on organizations fighting money laundering and on the improvement of anti-money laundering measures, this paper describes how money launderers operate to avoid getting caught. Both prevention and criminal perspectives are taken into account.

Artificial intelligence and real estate - not just an evolution, a real game changer!

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcelo Cajias
Keyword(s):  
Artificial Intelligence ◽  
Real Estate ◽  
New Technologies ◽  
Current Status ◽  
Real Estate Industry ◽  
Expiry Date ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Analyse Data

PurposeDigitalisation and AI are the most intensively discussed topics in the real estate industry. The subject aims at increasing the efficiency of existing processes and the institutional side of the industry is really interested. And in some ways, this is a breakthrough. This article elaborates on the current status quo and future path of the industry.Design/methodology/approachThe real estate industry is evolving, and parts of the business are increasingly being conquered by “proptechs” and “fintechs”. They have come into real estate to stay not because they discovered inefficiencies in the way one manages and does business with real estate, but because they come with an arsenal of new technologies that can change the whole game. The article discusses a path for changing the game in real estate.Findings“location, location, location” has now evolved to “data, data, data”. However, there is one essential aspect that must be considered before the latter can become the real value creator: the ability of market players to analyse data. And this does not mean being an excellent Excel user. The near future sees a solution called Explainable Artificial Intelligence (XAI) meaning that the econometric world constructed decades ago has an expiry date.Originality/valueOne needs to delete two myths from their mind: data quantity is proportional to accurate insights and that bringing your data to a cloud will deliver you with all the insights your business needs almost immediately.

Godrej properties: valuation using the capital cash flow technique

2020 ◽  
Vol 10 (3) ◽  
pp. 1-23
Author(s):  
Rajni Kant Rajhans
Keyword(s):  
Real Estate ◽  
Cash Flow ◽  
Structural Changes ◽  
Real Estate Market ◽  
Firm Valuation ◽  
Free Cash Flow ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market

Learning outcomes The case is focused to meet the following learning objectives: the readers will be able to recall basic cash flow estimation concepts; and the readers will be able to explain various features of capital cash flow (CCF). The participants will be able to implement the CCF model in real estate firm valuation. The participants will be able to compare CCF and free cash flow to the firm (FCFF) models. The participants will be able to evaluate the benefits of CCF over FCFF. The readers will be able to construct the CCF valuation model for firm valuation. Case overview/synopsis On 19th April 2019, Mr Kai, an analyst tracking real estate firms was excited to present to his team a new robust technique of firm valuation suitable for real estate companies, namely, the CCF technique and was also keen to deliberate on its application. Though the investment scope using this technique could be located in Godrej properties (GP), a reputed brand and the largest listed real estate developer by sales in 2018, yet, he was concerned about the assumptions of growth of real estate industry in India, in general, and the GP in particular. Importantly, this was because the real estate market in India was undergoing many structural changes. For instance, the buyers’ preferences were changing and unsold inventory in the industry was at its peak. Under these market conditions, an announcement was made by GP about a target return on equity of 20% in 2018–2023 expecting a dominant place in the real estate market in India, which also carried the threat of jeopardizing the reputation of GP, if under any circumstance the target was not accomplished. Complexity academic level Masters program. Supplementary materials Teaching notes are available for educators only. Subject code CSS: 11 Strategy.

To do or not to do: the real state of real estate

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Rukhman Solangi ◽  
Waheed Ali Umrani ◽  
Iqra Solangi ◽  
Mumtaz Ali Memon
Keyword(s):  
Small Business ◽  
Real Estate ◽  
Ethical Decision Making ◽  
Ethical Issues ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Academic Level ◽  
In The Beginning

Learning outcomes This case will enable students to develop an understanding of starting a single proprietorship business focusing on the real estate; understand the possible challenges that an entrepreneur faces in the beginning; apply ethical decision-making frame works when faced in ethically conflicting situation; andlook at the career anchoring theory. Case overview/synopsis The case study takes a look at the ways and means of starting a small business depending on the owner managers experience, capabilities and skills including networking which are germane to success. It also highlights the ethical issues that small business proprietors have to face in order to make money and grow. The setting of the case is a town in Sindh province of Pakistan, which setting generally represent the arena where such business (Single Proprietorship) develop and get involved in the economic development of a backward area. Finally, the case study highlights the significant but realistic expose of career anchor theory, which stipulates that people normally start with a job but switch jobs over their working life. Complexity academic level Graduate and undergraduate. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

Factor affecting competitive advantage of real estate developers in Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
I Putu Gede Sukaatmadja
Keyword(s):  
Real Estate ◽  
Competitive Advantage ◽  
Design Methodology ◽  
Upper Class ◽  
Environmental Orientation ◽  
Content Type ◽  
The Real Estate ◽  
Real Estate Developer ◽  
Real Estate Developers ◽  
Further Development

Purpose This study aims to test and explain the implementation of the green marketing mix (GMM) strategy, based on an environmental orientation (EO) in increasing the competitive advantage (CA) of the real estate developers or companies in Indonesia. Design/methodology/approach This study was conducted at real estate developer companies in several cities in Bali, i.e. Denpasar, Gianyar, Buleleng, Singaraja and Tabanan of Bali Province, Indonesia, registered as a member of Real Estate Indonesia. Bali was chosen as a province with a very rapid growth of the property sector than other provinces in Indonesia. This study is about census research. The sample unit is a real estate developer in Bali whose scope of operation project is at least 20 hectares, which means the scale of the property business is middle-class and upper-class companies. The unit of analysis was developer companies in Bali, whereas the respondents were the General Manager, CEO or owners of the company. The respondents were chosen so that each question in the questionnaire could be filled correctly and accurately. Findings EO has a positive but insignificant effect on CA. On the other hand, EO has a positive and significant influence on the GMM strategy. Furthermore, the results show that the GMM strategy has a positive and significant effect on CA. Originality/value The originality of this study is evident from the effort to deepen the analysis and the results of the hypothesis testing of previous studies; hence, this study uses a GMM strategy for real estate developers as a service company. The mapping of the previous research is done uses variables related to current research. This study seeks to develop a model from some previous studies aimed at enriching the results of research for further development.

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