The Effect of Hybrid Attributes on Property Prices

This study focuses on the sales comparison and the adjustment grid methods, under the framework of the market approach to valuation. The literature mostly focuses on the structural qualities of the properties, referring to the buildings and their locational characteristics, which pertain to their positioning within the urban fabric. Here we focus on a particular set of attributes which depend on how a building is placed in a specific land plot and relate to the surrounding environment. The term «hybrid» is used to identify this class of attributes. It is shown that hybrid attributes affect property prices and should not be disregarded by practitioners and appraisers. The role played by hybrid characteristics is analyzed based on the methodological foundation of the hedonic and the adjustment grid methods. The derived linear and log-linear models are tested by means of a case study. The models prove to have high explanatory power. The weight of each hybrid attribute is estimated to vary between 1% and 10%. Overall, these attributes contribute to 17-23% of the property prices. The validation performed using the grid adjustment method shows that the estimated marginal prices are effective in adjusting the prices per unit area of the comparables.

Assessing Renewable Energy Practice in Turaki Ali House Kaduna-Nigeria

The research investigated tenant understanding and preparedness to embrace renewable energy practice as an alternative to public power supply during an outage from the national grid. International standards of sustainable building occupation from Building Research Establishment Environmental Assessment Methods (BREEAM) and Leadership in Energy and Environmental Design (LEED) were adopted to form the parameters of the investigation. The study covered knowledge and utilization of the solar energy system amongst tenants and their readiness to embrace alternative energy systems as well as incentives from the management Company of Turaki Ali House to encourage sustainable occupation. A qualitative and quantitative technique was employed; the interview conducted covered two members of the tenants’ committee and a member of the staff from the management company who has been the desk officer responsible for the property for twenty years. Fifty-six questionnaires were distributed among tenants with forty-one questionnaires returned and used for the analysis. Results from the research revealed limited knowledge of the advantages of the solar energy system over generators; in addition, there was apprehension to embracing the solar system due to the higher initial costs of acquisition and substandard solar systems and components. Managers of the property are reported not have been performing their contractual obligation of the lease, thus justifying the use of individual generators by tenants despite the inherent dangers associated with the practice. The research concluded with a recommendation to raise awareness and encourage the use of sustainable energy sources by means of reviewing the content of tenancy agreements to ensure compliance with sustainable building occupation standards.

The Application of Spatial Autoregressive Models for Analyzing the Influence of Spatial Factors on Real Estate Prices and Values

The spatial distribution of real estate in specific geographic locations, real estate transactions, and the prices and values of properties are a highly complex spatial phenomena that should be analyzed with the use of multidimensional methods. Spatial factors are taken into account in the modeling process to increase the reliability of real estate market analyses, and spatial autoregressive models are applied to determine the effect of spatial factors on real estate prices and values. The present study relies on a review of the literature and the results of an experiment. The concept and principles of market analysis were designed with the use of spatial autoregressive models, and the influence of selected spatial factors on real estate prices was presented on maps. Analyses involving autoregressive models enable reliable modeling and support correct interpretation of the observed processes.

Analyzing the Influence of Metro Stations on Commercial Property Values in Delhi: A Hedonic Approach

The effect of proximity to a transit system on property values has become a key issue of debate regarding public infrastructure and economic development. This article aims to examine the impact of selected stations along the Blue line of Delhi Mass Rapid Transit System (MRTS) on commercial property prices. The research analyzed 1,413 commercial property parcels sold before and after the commissioning of Blue line in 2005. Hedonic Price Analysis (HPA) was used to estimate the effects of proximity to the metro rail on commercial property values. The method was applied to two time periods, i.e., from 2000-2004 and 2005-2008, coinciding with planning and construction (pre-commissioning phase and the operation phase (post-commissioning phase) of metro rail using actual sale prices of commercial units. The results indicate that a station node shows a negative trend during the planning and construction period. However, the operation period has produced a significant price premium associated with commercial properties, connected with improved accessibility. The coefficients indicate that MRTS has induced an increase in prices from INR 732.80 to INR 246.19, and its radius of impact covers an area of approximately 1/2 km from the stations. The methodology and results provide insight with a specific focus on commercial real estate values in other metropolitan cities developing and expanding MRTSs.

Dimensions of Students’ Satisfaction with Residential Housing and its Impact on their Loyalty – A South African Study

As an important component of student lifestyle, satisfaction with residential housing has become important in examining student housing quality and services. The current study used five attributes – bedroom environment, building quality, washroom facilities, support services, and leisure room facilities – to examine the relationship between student satisfaction with and loyalty to their residential housing. Each construct was measured using four items on a five-point Likert scale, ranging from 1 ‘Strongly disagree’ to 5 ‘Strongly agree’. The data were collected from South African students aged 18 years and above in tertiary institutions in Johannesburg, using paper-based questionnaires. Four hundred and forty-three (443) usable questionnaires were obtained for the analysis. The results showed that all the attributes, except for the bedroom environment, had a positive and significant relationship with student loyalty to student housing, although the effect was small for all the attributes. The control variables – age and gender – showed a similar relationship in regards to student loyalty. Academic and management implications of this study’s results are also discussed extensively. Overall, students’ satisfaction with residential housing dimensions has a positive and significant impact on their loyalty to the providers of residential housing.

Influence of Recreational, Landscape and Protective Functions on the Value of Forest, Wooded and Bushy Properties in Urbanized Areas on the Example of the Local Market of the City of Krakow

The paper presents a proposal for an approach to the valuation of forest, wooded and bushy real estate located in cities, which allows for the assessment of the impact of natural, protective and landscape factors on the value of this type of real estate. The main problem in the valuation of this type of real estate is the correct estimation of the impact on the value of the non-production factors described above. Considering the above, the main goal of the study was to identify the factors influencing the prices and value of forested, wooded and shrubby properties located in urbanized areas. The supplementary goal was to confirm the suitability of the methods and statistical models used in the study for similar measurements. By implementing the adopted goals, the article presents an analysis of the impact of these factors on the prices and value of real estate. The study covered the southwest part of the city of Kraków, located between the Vistula River and the Kraków-Rzeszów railway line in the north and east, and the southern and western border of the city. Urban forests perform mainly social functions, constituting only a marginal source of wood raw material. The results of the study showed that, in the case of similar properties, prices are significantly influenced by factors such as location, type and nature of the surroundings, form of access to the road, landscape and recreational values, manner of use and development status, as well as the permissible form of development, which is a measure of the profitability of timber production. The work ended with a discussion on the results and proposed directions for further research.

Consistency and Fairness of Property Valuation for Compensation for Land and Improvements in Zimbabwe

Property valuation for compensation of expropriated properties in Zimbabwe has been characterised by inconsistencies for decades. Previous studies have noted that displaced people are dissatisfied with the compensation paid by the expropriating authority. Even though many academic works were done on expropriation and compensation in Zimbabwe, issues surrounding consistency in property valuation practices and fairness of compensation paid remain unresearched. Thus, the purpose of this paper is to close this gap. Data for this study were collected through primary sources (questionnaire surveys to members of the compensation committee, private property valuers, designated property valuers and former commercial farmers) and secondary sources (literature surveys including a review of statutes, official reports, books, journals, and newsletters). Findings reveal that there is inconsistency in property valuation for expropriation, no clear legal definition of what constitutes fair compensation, and that views on the fairness of the compensation paid for expropriated properties in Zimbabwe are divergent. The study suggests that there is a need to review existing expropriation and compensation laws in Zimbabwe to create consistency in practice, thereby improving the fairness in the amount of compensation paid to the displaced person(s).

An Analysis of the Income and Price Elasticity of Demand for Housing in View of Price Dynamics on the Residential Property Market

In both the global and the domestic approach, the real estate market is a multifaceted domain of study, constituting a specific and imperfect system. Researchers have to rely on increasingly advanced analytical tools to capture the structural complexity of real estate markets. Real estate prices are influenced by contradictory behaviors of market participants. This observation prompted the authors to analyze the income and price elasticity of demand for housing by calculating elasticity coefficients in view of changes in housing prices and the Veblen effect. This problem was analyzed based on a review of the literature and the results of an experiment. The results of the current study can be used to confirm the presence of the Veblen effect on the housing market based on the adopted criteria. The coefficients of price and income elasticity of demand for housing were calculated in view of the price dynamics on the real estate market to paint a more complete picture of reality and explain market processes.

Assessing the Impact of Outbreaks on Malaysian Listed Property Companies in Mixed-Asset Portfolios

This paper assesses the impact of outbreaks from the perspective of volatility of Malaysian Listed Property Companies in mixed-asset portfolios, concentrating on periods of time between outbreaks. The real issue of this study is the health crisis that has troubled institutional investors, as it has already significantly impacted the returns on investments. Investors need to be better informed on the impact of health outbreaks on investments in order to minimize their impact. To assess the impact of the outbreaks, the GARCH method has been employed to examine the dynamic volatility of listed property companies in mixed-asset portfolios. The volatility level will give investors better information from point of view of the dynamics of volatility of the Malaysian listed property companies’ performance within mixed-asset portfolios. The findings show that listed property companies demonstrate high volatility compared to other mixed-asset portfolios during the periods of outbreaks. This indicates Malaysian listed property companies were the most volatile investment in mixed-asset portfolios. This empirical study will contribute significantly to institutional investors, especially in terms of the investment decision-making process during outbreaks.

Application of Multivariate Time Series Cluster Analysis to Regional Socioeconomic Indicators of Municipalities

The socio-economic development of municipalities is defined by a set of indicators in a period of interest and can be analyzed as a multivariate time series. It is important to know which municipalities have similar socio-economic development trends when recommendations for policy makers are provided or datasets for real estate and insurance price evaluations are expanded. Usually, key indicators are derived from expert experience, however this publication implements a statistical approach to identify key trends. Unsupervised machine learning was performed by employing K-means clusterization and principal component analysis for a dataset of multivariate time series. After 100 runs, the result with minimal summing error was analyzed as the final clusterization. The dataset represented various socio-economic indicators in municipalities of Lithuania in the period from 2006 to 2018. The significant differences were noticed for the indicators of municipalities in the cluster which contained the 4 largest cities of Lithuania, and another one containing 3 districts of the 3 largest cities. A robust approach is proposed in this article, when identifying socio-economic differences between regions where real estate is allocated. For example, the evaluated distance matrix can be used for adjustment coefficients when applying the comparative method for real estate valuation.