Real Estate Management and Valuation
Latest articles in this journal
Real Estate Management and Valuation, Volume 27, pp 109-123; doi:10.2478/remav-2019-0029
Abstract:The possibility of using multiple regression models in real estate valuation is the subject of disputes, both in theory and in practice. Econometric modelling is a difficult process, since a number of issues of substantive and numerical nature occur during that process. Modern technologies enable quick and easy model estimation with the use of virtually any quality of data. Naturally, it provokes property appraisers to use such models in the practice of real property valuation, particularly in mass appraisal, frequently without taking those issues into account. Consequently, the models obtained and applied in practice turn out to be of poor quality and, objectively speaking, should not serve as the basis for determining real estate value. The specificity of the real estate market and of the real properties themselves as objects traded in that market additionally exert a negative impact on the quality of the obtained models. In this article, the authors present the results of research which involved a simulation of various types of disturbances of a model artificially developed database of real estate prices and attributes as well as their impact on the quality of estimated models. The research will make it possible to answer the question of the degree and type of disturbances that are permissible in the functioning of a real estate market if the estimated models are to still satisfy the qualitative requirements defined for them, and thereby produce accurate valuation results. A model database will be disturbed by the deviation of prices from model prices and by reducing its size. Radom generators were used to obtain database disturbances.
Real Estate Management and Valuation, Volume 27, pp 124-132; doi:10.2478/remav-2019-0030
Abstract:In the course of discussion on an econometric model of property value and its place in property appraisal, the argument of the main goal of the process (property market value prediction itself) was raised in this article. The need for the consideration of an ontologically perceived, particular element of the real estate market with its distinctive characteristics indicates the specific nature of the interpretation of the data which may be used in the appraisal process. Therefore, a new shape of the property value model, based on LSM, was presented. It takes into account a specific description of the appraised property. Thus, the factor of dissimilarity between sold properties used in creating the value model and the appraised property was used in its coefficient matrix. The new model clearly shows the advantages and disadvantages of the dissimilarities between sold properties used in creating the coefficient matrix of the value model.
Real Estate Management and Valuation, Volume 27, pp 97-108; doi:10.2478/remav-2019-0028
Abstract:At the end of 2012, there were 174 churches and religious associations operating in Poland (GUS 2014). Most of the individuals (nearly 96%) are the followers of the Roman Catholic Church. The Catholic Church and its organizational units have legal personality, thereby enabling them to acquire, possess and dispose of the title to real estate and other property rights, and administer the properties. In the years 1944-1962, almost all ecclesiastical real estates were nationalized. The asset-related situation of church legal persons was regulated upon the entry into force of the Act of 17 May 1989 on the relations between the State and the Catholic Church in the Republic of Poland. In 1991-2004, the legislator also regulated the legal status of many other churches and religious associations. Moreover, a fairly uniform system of ecclesiastical reprivatization was developed. For the purposes of the publication, analyses of selected aspects concerning the management of real estates owned by legal persons of churches and other religious associations in Poland have been carried out. Cases of the approaches adopted in other exemplary countries have also been presented. The intention is to indicate the rules in force as well as the problems encountered in this regard.
Real Estate Management and Valuation, Volume 27, pp 31-41; doi:10.2478/remav-2019-0023
Abstract:Although several recent studies have shown how high voltage transmission (HVT) lines affect property values, no work has been undertaken in Zambia. This paper explores if there is a prima facie relationship between HVT lines and residential property values in Zambia. A priori evidence shows a paradox, with many new developments springing up in areas of high concentrations of HVT lines though residents vehemently complain about the mal-effects of HVT lines. Why then should land perceived to be inferior or “stigmatized” attract new developments? It is against this background that the householders’ perceptions of HVT lines are explored and the resulting effects on property values ascertained. A household survey was conducted in the Chalala, Libala South and Kamwala South areas of Lusaka city where developments have been undertaken around HVT Lines. The study also examined the statistical relationship of distances from HVT line with residential property values. Results show residential property values rise with increasing distance from the HVT line. It is recommended that the statutory wayleave distances should be raised to at-least 100 meters from the existing 31 meters for a 132kV line. It is further recommended that the regional wayleave guidelines currently in use should be made national.
Real Estate Management and Valuation, Volume 27, pp 59-68; doi:10.2478/remav-2019-0025
Abstract:The work has approved the methods of partial economic evaluation of lands by the indicators of yield capacity of agricultural crops, payback of expenditures and differential income for a typical agricultural enterprise, located on the territory of the natural-agricultural province of the Western Forest-steppe. The research supplies proposals concerning improvement of the methods of economic evaluation of lands in Ukraine on the example of the indicators of economic evaluation of the land use at the farming enterprise “GREEN GARDEN”. The indicators are used for the growing of agricultural crops, planning their yield capacity, comparison of the economic fertility of soils and determination of the economic results of growing agricultural crops under the current production conditions in a defined working area. The research proposes the optimization of land-use management, applying a metrical game on the basis of indicators of the economic evaluation of lands to define the optimal share of agricultural crops in crop rotation. This method can be used to optimize land use in any region. Application of mathematical modeling by indicators of differential income ensures that maximum gross income is obtained under the mixed strategy of the game on better and worse soils in the enterprise.
Real Estate Management and Valuation, Volume 27, pp 17-30; doi:10.2478/remav-2019-0022
Abstract:While being largely confined to different realms, planning and real estate also have a symbiotic relation. The logic of this relation varies in time and space, which makes the analysis of the balance between the two fields challenging. When we define these actions as institutions, potentially powerful analytic tools become available. This critical literature review examines some of the most relevant of them, in various specific institutional arenas, including the impact of planning on property markets and prices. The aim is to examine the role of institutions at the interface of urban planning and real estate. In other words, to see what kind of institutional effects are identifiable, whenever planning and property interests overlap. The conclusions suggest that a change in the urban fabric is likely to impact the possibility to use a site, and thereby also the value of land and built property.
Real Estate Management and Valuation, Volume 27, pp 5-16; doi:10.2478/remav-2019-0021
Abstract:In Poland municipalities do not fulfil their statutory obligations of providing dwellings for vulnerable households and often limit their activity to merely providing housing for persons to whom the court has granted the right to dwelling in eviction proceedings. However, even for these people there are not enough dwellings. This very difficult situation of Polish municipalities in terms of the provision of direct housing assistance results from history-related problems with the quality of the existing housing stock, a lack of reform of municipal lease rules and insufficient financial resources. The author focused on a comparison of the municipal housing stock management in the largest cities in the context of changes that took place in years 2009-2016. The results of the research proved there were important differences among cities in terms of the activity of applying the available instruments. Despite acting in the same institutional framework, some municipalities were able to improve the housing situation of citizens most in need of assistance, step by step. The survey covered the voivodeship capital cities of Poland. Critical analysis of literature and documents as well as an analysis of statistical data were used.
Real Estate Management and Valuation, Volume 27, pp 69-80; doi:10.2478/remav-2019-0026
Abstract:Considering the significant growth of artificially built attractions in Thailand, the objective of this research is to study architectural design and perceived value toward revisit intention in artificially built attractions. The designs of these attractions are derived from foreign countries that would not be suitable for the Thai environment. Nevertheless, this could be considered through the perspective of marketing growth, which depicts artificially built attractions receiving good response from visitors. Therefore, it was essential to analyze customers’ attitude toward their travel and revisit intention to artificially built attractions. The research uses the quantitative method with 342 participants who visited the artificially built attractions. The result indicates that emotional, functional, and social values influence the revisit intention. Furthermore, the architectural design had a positive influence on emotional and social values. Though architectural design had no direct influence on revisit intention, it had indirect influence via emotional and social values. By analyzing the independent and dependent variables, it was indicated that, although all independent variables affect dependent variables, the scores of each of these factors were not high. Therefore, it can be concluded that artificially built attractions still have space for improvement in terms of perceived value in order to foster revisit intention.
Real Estate Management and Valuation, Volume 27, pp 81-96; doi:10.2478/remav-2019-0027
Abstract:When concluding a property insurance agreement, adjustment of the insured amount poses a certain risk. From the policyholder’s point of view, the risk measure translates into the chosen target amount, which should correspond to the insurable value. The aim of the research is to determine a statistical model for prediction of the insurable value with using current models in the Czech Republic. The model for insurable value prediction proposed in this paper accepts the risk of decision making under uncertainty suitably. The model’s foundation is a synthesis of four core models discussing the addressed issue. The methodology is based on a classification tree created by the CART method, and multivariate linear regression. After the classification tree is created, the input variables which contributed to the classification are used in the regression model. The database consists of 125 family houses which went through a detailed examination (they were documented, measured, and their technical state and legal status were determined), and described in experts’ reports. The obtained results showed a high degree of statistical association of selected predictors with the estimated insurable value of property, as well as with the acceptable risk, and subsequently, a relatively low percentage of misclassified objects. The proposed multiple regression model proved to be statistically significant and can be used for objective estimations of insurable values free of insurance companies’ strategy. The designed methodology may be applied in other areas as well, for example, in decision-making processes at the population level in crisis situations.
Real Estate Management and Valuation, Volume 27, pp 42-58; doi:10.2478/remav-2019-0024
Abstract:One of the key determinants of the quality of real estate mass appraisal is the algorithm used for conducting such an appraisal. Other determinants include detailed methodological and substantive solutions within the scope of a selected, applied algorithm. This article is dedicated to one of the major stages of the process of land real estate mass appraisal with the use of the Szczecin Algorithm of Real Estate Mass Appraisal (SAREMA), namely defining and determining the so-called elementary terrains. The paper aims to present the methods for designating the boundaries of elementary terrains, the manner of defining their number and size and, consequently, the number of real properties that will be covered by an automated process of mass appraisal in a given area. Ways of defining the boundaries of elementary terrains were proposed in the paper based on the existing surveying districts, zoning plans, background maps, thematic map layers, real estate market analyses as well as statistical methods. Elementary terrain boundaries thus designated were verified with the use of actual real estate resources of the city of Szczecin.