Real Estate Management and Valuation
Latest articles in this journal
Real Estate Management and Valuation, Volume 27, pp 33-43; doi:10.2478/remav-2019-0013
Abstract:The complexity of multi-component real properties results from the possibility of identifying various components in legal, physical or functional terms. The possibility of distinguishing various functional elements of real properties, combined with the specificity resulting from their market properties, is problematic when applying the comparative approach to real estate valuation. In this case, the valuation procedure can be implemented using statistical models: the parametric model or the conditional one. This research paper demonstrates the construction of the parametric and conditional models taking into account the geometric and pricing attributes of multi-component real estate. The authors paid attention to adjusting the models to the available market data. They also specified the conditions for the use of statistical models in the real estate valuation process. Based on the analytical and accounting considerations, the estimation criteria for the parametric model and the conditional model were defined, which allow the correct application of these models at the stages of the real estate market analysis and the real estate valuation process.
Real Estate Management and Valuation, Volume 27, pp 126-137; doi:10.2478/remav-2019-0020
Abstract:Due to an ageing population, local governments are facing new challenges in the field of addressing the housing needs of older people. Seniors are not a homogeneous group; three basic categories may be distinguished in terms of independence level and the resulting needs. The first category would include independent people, the second one - the elderly with limited independence, and in this case it is necessary to adapt their dwellings to the needs of people with partial disabilities, e.g. dedicated housing. The last category is comprised of people with considerable dependence for whom there is a need to create special dwellings such as sheltered housing or assisted living housing. The aim of this paper is to diagnose the housing preferences of the elderly and to explore the solutions of the selected municipalities in the field of addressing the housing needs of seniors. The issue is analyzed based on desk research and information collected within field research in the Warsaw, Poznań and Szczecin urban areas.
Real Estate Management and Valuation, Volume 27, pp 5-19; doi:10.2478/remav-2019-0011
Abstract:The concept of market absorption and carrying capacity in economic terms are adequate to the real estate market, even though the legislator uses only the concept of the absorptive capacity of the area in the planning process. The aim of the study is to discuss the concept of carrying capacity and absorption of the real estate market in economic and planning terms as well as the application of conclusions from literature studies and determination of capacity and absorption on a specific selected local market. In the empirical part, a model of demand for space for detached housing development (market absorption) was built as a function of price, income and expenses for complementary goods. At the same time, as a complementary good for the purchase of land for the construction of a house, the purchase of a flat and purchase of a real estate built-up with a detached house were accepted. On the other hand, reference was made to absorption understood adequately to planning documents. It was discussed whether the concept, interpreted in two ways, leads to the absorption of the same area on the local market. The analysis uses data from the Register of Prices and Values of Starosty County Price and Value Register, planning documents as well as data resources on statistics, and public information and own research.
Real Estate Management and Valuation, Volume 27, pp 53-62; doi:10.2478/remav-2019-0015
Abstract:The introduction of an ad valorem tax can lead to an increase in the tax burden on real estate. There are concerns that this increase will be large and widespread. Before undertaking any actual actions related to the real estate tax reform, pilot studies and statistical analyses need to be conducted in order to verify the validity of those concerns and other aspects regarding the replacement of a real estate tax, agricultural tax and forest tax with an ad valorem tax. The article presents results of research on the effectiveness of the classification of real estate into a group at risk of an increase of tax burden with the use of the k-nearest neighbors method. The main focus was to determine the size of a real estate set (training data set) on the basis of which classification is conducted, as well as on the efficiency of that classification, depending on the size of such data set.
Real Estate Management and Valuation, Volume 27, pp 66-76; doi:10.2478/remav-2019-0016
Abstract:The income approach is the subject of debates conducted by academics and practitioners as one of the most controversial approaches in valuation practice. It is also somewhat differently understood by the three historically shaped valuation schools (US, British and German). This article compares the main assumptions underpinning the income approach’s investment method between the three schools in order to: 1) determine why the assumptions change and in what direction; 2) assess the advantages and disadvantages of explicit cash flows; and 3) evaluate the advisability of incorporating explicit cash flows into Polish valuation methodology. A thesis is formulated that, in Poland, the investment method should use implicit cash flows for estimating the market value of properties. There is a need to include explicit cash flow in university programs, but their use should be limited to valuations undertaken to determine the investment value of a property or the market value of portfolio properties, as well as valuations carried out for the purposes of financial reporting as required by EU legislation (MSSF 13 and MSR 40). The article was prepared based on the review and analysis of the relevant literature.
Real Estate Management and Valuation, Volume 27, pp 44-52; doi:10.2478/remav-2019-0014
Abstract:Average prices of residential real estate usually show significant variation on a regional basis. This reflects different social, economic or historical conditions for the development of these markets. In addition, research so far has not provided strong evidence supporting convergence in the level of property prices in the regional dimension. The lack of price convergence, however, does not exclude convergence in the direction and strength of price changes. The article is an attempt to answer the question of whether price trajectories in the regional housing markets in Poland show long-term similarity. To this end, econometric analysis of the dynamics of relative prices in the voivodship markets with the use of quarterly data from the years 2002-2016 has been conducted.
Real Estate Management and Valuation, Volume 27, pp 20-32; doi:10.2478/remav-2019-0012
Abstract:The U.S. Real Estate Investment Trust (REIT) sector, since its inception in the 1960s, has been witness to continuous evolution. The numerous events that have characterized its growth and its actual structure over time have made this sector an object of interest many researchers and authors, who tried to give answers to several financial questions that are still open to debate. We contend that a global review of financial literature on this specific industry could give good suggestions for further research themes for all those who are interested in studying the U.S. REIT market and its characteristics and for investors at large.
Real Estate Management and Valuation, Volume 27, pp 97-107; doi:10.2478/remav-2019-0018
Abstract:Building Information Modelling (BIM) is the latest software technology used widely by many construction businesses - big and small - particularly within the Architecture Engineering Construction (AEC) sector. Besides being a design and documentation tool, building information models (BIM) provide a platform for enhanced knowledge base collaboration, the potential to manage modification, and therefore the capability to provide information support throughout the lifecycle of an apartment building. A big share of the eastern European construction industries remains excluded from BIM technology and the potential advantages it will hand over to their business, particularly for renovation projects. It requies the involvement of all stakeholders to realize higher-level coordination, productivity, visualization and value efficiencies. The advantages of BIM exploitation for renovation projects are considered in the article. Tendencies in the development of BIM technologies throughout the globe and in eastern European countries on example of Ukraine are shown. Examples of the exploitation of local building information systems in realizing renovation processes are given, and proposals for policymakers in terms of applying BIM technologies in housing renovation activities and facility management are formulated.
Real Estate Management and Valuation, Volume 27, pp 77-96; doi:10.2478/remav-2019-0017
Abstract:This paper investigates the impact of sustainable development and green management on the performance of an educational facility with a view of enhancing the learning environment and increasing students’ achievement in Nigeria. A sequential examination of the benefits of green features and barriers in their adoption was carried out. The data for the study relied on a study sample of 400 respondents comprising university teachers, “in-resident” building professionals and postgraduate students of a built environment selected from four renowned universities in the south-west region of Nigeria. An ideation framework was constructed and multilevel analysis performed to evaluate perceptions on associated factors alongside the variable items. The low recognition of basic green benefits by the respondents was, to some extent, the result of unfamiliarity with the discussed concepts. In view of barrier factors deterring the implementation of concepts, the lack of government intervention, unavailability of formulated policies, lack of inclusion of the sustainability concept in the school curricula, and unavailability of capacity training for professionals in the building industry, were perceived to be the prime factors. The paper concludes that all stakeholders have cogent roles to play at an individual level when it comes to eliminating barriers, initiating concepts, and realizing the desired facility performance capable of ensuring a sustainable learning environment as well as promoting academic excellence in the Nigerian educational sector.
Real Estate Management and Valuation, Volume 27, pp 108-125; doi:10.2478/remav-2019-0019
Abstract:This paper investigates the determinants of capital structure in the context of the Gulf Cooperation Council (GCC) and United Kingdom (UK) real estate sectors. The results of a bivariate analysis indicate that leverage in the UK is much higher than in GCC countries. This may be attributable to UK companies facing a lower cost of debt, which would facilitate their raising of debt capital from the market. In addition, UK real estate firms tend to be larger and have higher levels of tangibility and retained earnings compared with GCC firms, while GCC firms tend to be more profitable and have more growth opportunities. The results of panel and Tobit regression analyses support both trade-off and pecking order theories; for instance, company size was found to have a significant positive impact on different types of debt measurements (market and book debt ratios), which is consistent with the trade-off theory, while profitability and retained earnings to total assets exhibited a significant negative impact for GCC and UK real estate firms, which is consistent with the pecking order theory. Importantly, these results hold true regardless of whether the regressions are estimated using an OLS, random effects, fixed effects panel estimation or a Tobit model.