Level of Foreign Direct Investments and Transparency of Polish and Global Real Estate Market

Karolina Czechowska

doi:10.2478/remav-2013-0013

Abstract

Abstract The article aimed to present the dependencies between the transparency of the real estate market and the level of foreign investments realized on it. For developers on the real estate market, a key element, other than potential profits, may be the market’s transparency. The main feature of a transparent real estate market is easy access to credible data concerning supply and demand, rent, property prices, transactions, vacant houses and capitalization rates that could be the basis for analysis. Market transparency does not guarantee the success of an investment, but considerably influences investment decisions and the level of risk connected with them.

Highlights

Compared to other goods, a property is made distinct by its specificity, which in turn stems from its characteristic features
A property is made distinct by its specificity, which in turn stems from its characteristic features. These features make a property a special type of good, difficult to classify in the aspect of typical goods occurring on market, which is reflected in little transparency on the real estate market
Another feature of property that influences market transparency is stability on the site. This feature creates serious economic impact which is important from the point of view of a market participant (KUCHARSKA-STASIAK 2006 p. 18): 1) The value of each property is a resultant of changes in its environment, 2) Real estate markets are of local character

Summary

Introduction

A property is made distinct by its specificity, which in turn stems from its characteristic features. The real estate market is characterized by a lack of transparent information regarding it, which results in the fact that the majority of market participants do not have sufficient data concerning the prices of properties at the moment of making a decision about buying – selling, since obtaining it is toilsome and requires knowledge about the market.

Results

Conclusion