scholarly journals MICROECONOMICS OF ARCHITECTURE: BETWEEN MARKET AND PUBLIC

2020 ◽  
Vol Vol. 36 (No. 2) ◽  
pp. 85-90
Author(s):  
Valentinas Navickas ◽  
Tomas Skripkiunas
Keyword(s):  
Literature Review ◽  
Real Estate ◽  
Public Goods ◽  
Market Value ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Nonmarket Goods ◽  
The Real Estate Market ◽  
Different Types

The position of architecture between market goods and public goods is addressed in this study. A transition of architectural objects of built environment from market goods towards public or nonmarket goods is presented in literature review. The real estate market value is highly influenced by concepts of externalities and public goods, therefore being highly spatially dependent and making the process of the real estate valuation more complex. The internalization of these externalities and public goods is impossible because of the nature of public space in the city. The concept of value and different types of value, like exchange, use, image, social, environmental, cultural value, are also presented in literature review. These different types of value are transferred to value in exchange when estimating market value. The aim of research is to calculate the amount of the real estate market value that is influenced by externalities, public or nonmarket goods. The process of value transfers between market and public is also discussed in this study. In the research part prices of similar apartments measure the coefficient of variance. Newly constructed apartment buildings with partial finishing interior within city boundaries are selected expecting their price to vary only because of different amount of externalities and public goods available inside district/region of selected building or provided by the actual building itself. The results show that up to 29% of the real estate market value is influenced by public or nonmarket goods. Implications of further research suggest controlling for market segmentation and architectural quality variables

Real Estate Valuation Fraud

2015 ◽  
pp. 278-291
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Personal Gain ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Valuation ◽  
The Real Estate Market ◽  
Real Market

Valuation profession is a link between the borrower and the lender. Fraud is an intentional deliberate deception committed for illegitimate personal gain. There are several forms of real estate fraud, especially when the real estate market is facing a boom. The most widespread types of real estate fraud include the preparation of two sets of settlement statements, property flipping, and fraudulent qualifications. There are mainly three types of valuation to look out for. Valuation may be received from an unauthorized agency. Furthermore, a real valuation may be altered from the original to generate profit. Thirdly, intentional inflation of the value of a property will hide the real market value. It is usually difficult to spot real estate fraudulent activities, so deep investigations and professionalism is needed. This chapter explores real estate fraud.

Cyclical capitalization and lag vacancy

2017 ◽  
Vol 10 (2) ◽  
pp. 211-238 ◽  
Author(s):  
Maurizio d’Amato
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Property Market ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Valuation Process

Purpose This paper aims to propose a new valuation method for income producing properties. The model originally called cyclical dividend discount models (d’Amato, 2003) has been recently proposed as a family of income approach methodologies called cyclical capitalization (d’Amato, 2013; d’Amato, 2015; d’Amato, 2017). Design/methodology/approach The proposed methodology tries to integrate real estate market cycle analysis and forecast inside the valuation process allowing the appraiser to deal with real estate market phases analysis and their consequence in the local real estate market. Findings The findings consist in the creation of a methodology proposed for market value and in particular for mortgage lending determination, as the model may have the capability to reach prudent opinion of value in all the real estate market phase. Research limitations/implications Research limitation consists mainly in a limited number of sample of time series of rent and in the forecast of more than a cap rate or yield rate even if it is quite commonly accepted the cyclical nature of the real estate market. Practical implications The implication of the proposed methodology is a modified approach to direct capitalization finding more flexible approaches to appraise income producing properties sensitive to the upturn and downturn of the real estate market. Social implications The model proposed can be considered useful for the valuation process of those property affected by the property market cycle, both in the mortgage lending and market value determination. Originality/value These methodologies try to integrate in the appraisal process the role of property market cycles. Cyclical capitalization modelling includes in the traditional dividend discount model more than one g-factor to plot property market cycle dealing with the future in a different way. It must be stressed the countercyclical nature of the cyclical capitalization that may be helpful in the determination of mortgage lending value. This is a very important characteristic of such models.

scholarly journals Market and cadastral data comparison for the real estate market value forecasting

2020 ◽  
Vol 17 (4) ◽  
pp. 44-54
Author(s):  
M. B. Laskin ◽  
P. A. Cherkesova
Keyword(s):  
Real Estate ◽  
Normal Distribution ◽  
Market Value ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
Market Data ◽  
The Real ◽  
The Real Estate ◽  
Saint Petersburg ◽  
The Real Estate Market

The aim of the research is to develop theoretical and methodological approaches to market value forecasting in the real estate market. The relevance of the research is determined by the system-forming place that the real estate market occupies in the economy of the country and regions, affecting the interests of owners of various forms of ownership, construction and development companies, insurance companies, banks. Another aspect that determines the actuality of the study is the discrepancy between well-structured cadastral databases and market data dispersed between different owners of information resources, and the unstructured nature of market data, which in most cases is focused on advertising, rather than on analytical market research.Materials and methods. The study uses a model of a multidimensional logarithmically normal distribution law of the ensemble of prices for residential real estate at equidistant points of time and cadastral value, the ARIMA model for predicting market value, taking into account the features of the logarithmically normal distribution of prices, as a distribution with positive asymmetry. As a statistical material, we used market data on residential real estate published in the periodical press in the period from the end of 2012 to 2018. The volume of samples of weekly publications is 15000-20000 objects; data for 21 quarters (more than five years) was used. As a comparison base, we used data from cadastral registration of real estate objects in Saint Petersburg for 2018. The total volume of the cadastral database of residential real estate in Saint Petersburg (individual apartments) is 2 226734 objects with a fairly complete (and well-structured) set of price-forming factors. The authors propose a method for estimating the most likely movement of the market value for a pre-selected real estate object that has passed cadastral registration and has a cadastral value entered in the register and predicting the market value in the future period.Results. The theoretical significance of the work is the proposed algorithm for estimating the most probable trajectory of the market value of the investigated object, based on the conditional multivariate log-normal distribution for a given value of the cadastral value. A well-developed and studied ARIMA time series forecasting model is applied to the logarithms of the obtained time series, the return from logarithmic prices to real prices is carried out taking into account the peculiarities of the logarithmically normal distribution. Results are compared with median scores and estimates, obtained by average values.Conclusion. The paper shows that the introduction of cadastral value in the Russian Federation opens up new opportunities for analyzing and forecasting market prices, since cadastral databases contain the most complete lists of real estate objects, including the cadastral value, which now, in accordance with the law, must be updated at least once every three years and, as of 2015 and 2018, was determined as the market value, therefore, until the next cadastral assessment, can serve as a basis for constant comparison with market data, which are constantly changing, primarily in the composition of objects.

scholarly journals The cadastral value as a tool for monitoring the real estate market value

2021 ◽  
Vol 37 (1) ◽  
pp. 84-108
Author(s):  
Lyudmila Gadasina ◽  
◽  
Mikhail Laskin ◽  
Ekaterina Zaytseva ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Theory And Practice ◽  
Two Dimensional ◽  
Market Prices ◽  
Market Data ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market

In the theory and practice of real estate valuation, in analytical studies of the dynamics of real estate markets there is a problem of tracking changes in market prices. The apparent simplicity of this task leads to the fact that in everyday practice both market participants and professional analysts are satisfied with observations of average prices. The advantage of this traditional approach is computational simplicity. However, in the conditions of presence of a large number of special software and extensive statistical material can be used more complex research methods. The purpose of this article is to research big current market data of real estate objects and compare these data with the cadastral value determined in accordance with Russian legislation as the market value at the specified date. In this regard, there are problems associated with the multidimensional distribution of market prices and cadastral values. The article presents the method of calculation of changes of the real estate market prices on the basis of comparison of two-dimensional prices distributions of offers and cadastral prices for two periods. The main problem in studying the dynamics of real estate market prices is the inability to track the change in market prices for each property, as objects are constantly put up for sale and removed from it. The work carried out in the Russian Federation in 2014 to establish the cadastral value of real estate opens opportunity to analyze two-dimensional distributions of current market and cadastral prices and to assess the dynamic characteristics of the market for any real estate objects. The main result of article is the method which allows to apprise the market value of real estate in real time when new market data come by their comparison with the previously established cadastral value. Cadastral value is assumed to be defined as market value at the valuation date.

scholarly journals Assessment of the Real Estate Market Value in the European Market by Artificial Neural Networks Application

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-10 ◽  
Author(s):  
Jasmina Ćetković ◽  
Slobodan Lakić ◽  
Marijana Lazarevska ◽  
Miloš Žarković ◽  
Saša Vujošević ◽  
...  
Keyword(s):  
Real Estate ◽  
Input Data ◽  
Market Value ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Price Forecast ◽  
The Real Estate Market ◽  
Artificial Neural ◽  
The Impact

Using an artificial neural network, it is possible with the precision of the input data to show the dependence of the property price from variable inputs. It is meant to make a forecast that can be used for different purposes (accounting, sales, etc.), but also for the feasibility of building objects, as the sales price forecast is calculated. The aim of the research was to construct a prognostic model of the real estate market value in the EU countries depending on the impact of macroeconomic indicators. The available input data demonstrates that macroeconomic variables influence determination of real estate prices. The authors sought to obtain correct output data which show prices forecast in the real estate markets of the observed countries.

scholarly journals SPATIAL AND ECONOMIC DEVELOPMENT OF REAL ESTATE IN THE CONDITIONS OF TRANSFORMATION OF URBAN SPACE ON THE EXAMPLE OF THE CITY OF SIMFEROPOL

2021 ◽  
pp. 76-84
Author(s):  
E.Sh. Akimovа ◽  
M.V. Voitseshuk
Keyword(s):  
Economic Development ◽  
Real Estate ◽  
Urban Space ◽  
Market Value ◽  
Real Estate Market ◽  
Location Factor ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
The City

The article considers the spatial and economic development of real estate and the influence of the location factor on the market value of real estate objects, as well as the degree of application of averaged adjustments for the location factor to the real estate market in Simferopol.

scholarly journals Price as a Measure of Market Value on the Real Estate Market

2018 ◽  
Vol 26 (4) ◽  
pp. 68-77 ◽  
Author(s):  
Radosław Gaca
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Economic Thought ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Economic Trends ◽  
Main Basis ◽  
The Relationship

Abstract Issues related to the relationship between prices and values of goods have occupied the minds of economists since the beginnings of economic thought. These considerations concern both general issues and the direct, practical dimension of values. For the real estate market, the main value category considered and used is market value. Its concept has been defined at different levels of legislation, but regardless of how detailed the content of the definitions, they all refer to price as the main basis for reasoning. On the other hand, a part of the economic trends call into question the possibility of measuring values directly on the basis of prices. Consequently, in the light of existing divergences in interpretation, can prices be a good yardstick for value, particularly in the light of the evolving concepts of Highest and Best Use (HaBU) and Hope Value? In an attempt to answer the question, the paper presents considerations on the relationship between prices and value on the real estate market, in particular in the context of the significance of this relationship for the determination of market value. Theoretical studies were supported by empirical research, which allowed for disproving the research hypothesis concerning the relations between the analyzed economic values.

Influence of the Indoor Environment Quality on the Market Value of the Buildings

2014 ◽  
Vol 1041 ◽  
pp. 358-361
Author(s):  
Jan Pašek
Keyword(s):  
Real Estate ◽  
Indoor Environment ◽  
Market Value ◽  
Energy Performance ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Environment Quality ◽  
The Real Estate Market

The modern buildings are becoming more and more different from the traditional buildings, especially regarding their parameters of the indoor environment and low energy performance. For this reason, the real estate market has been looking for new criteria to estimate their market value and to distinguish them one from another. As they are trying to find the most objective parameters for establishing the market value of the buildings on the real estate market their attention focuses also on the quality of the indoor environment. The real estate market perceives a building with high quality of the indoor environment traditionally in the context of the technical, economic and energetic parameters but with higher and higher emphasis also put on social and environmental connections [1,2]. This paper is focused on the analysis of how much the quality of the indoor environment is taken into account in the process of the market valuation of the buildings in modern context.

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