Abstract
Abstract The market of non-residential premises is the subject of analyses less frequently than the housing market. There are two main reasons which probably contribute thereto. First of all, commercial premises are relatively less frequently objects of trade than dwelling units; secondly, they are more diverse due to their various uses. The category includes garages, office premises, commercial premises, as well as warehouses. Such differences in their uses result in significantly different characteristics, such as surface area. The article attempts to analyse a selected non-residential segment of the commercial property market in Krakow based on a large set of data (280 objects), referring to the transactions concluded in the last five years. The size of the data enabled the use of multidimensional modelling of the selected market in different size variants. This made it possible to draw reliable conclusions which undermine the widespread belief regarding very limited possibilities of using the method of market statistical analysis in the comparative approach, especially in this segment of the real estate market, as well as in others, where transactions are concluded less frequently than on the housing market.
Highlights
The main problem of using statistical methods for the widely understood analyses of the real estate market, including the valuation of properties on this market, is the size of the available market data, which is often limited
The research objective, formulated at the beginning of the article, was an attempt to demonstrate that a sufficiently large size of the market database on transactions involving real estate of a specific type on the local market is not an absolute condition for using algorithms based on statistical methods in the process of property valuation
In order to be able to unambiguously abstract the influence of the factor of the database size on predicting the market value of real estate, the potential effect of other factors was eliminated, considering the same general form of the multidimensional functional model, the same type of nonresidential premises, a fixed set of attributes considered to be essential in this market at the stage of its comprehensive analysis and predicting the model value of the same premises in each modelling variant
Summary
The main problem of using statistical methods for the widely understood analyses of the real estate market, including the valuation of properties on this market, is the size of the available market data, which is often limited. This problem especially concerns those segments of the real estate market which are less typical than, for example, the residential real estate market of a large city. The study attempts to analyze the problem of the size of the data on the example of modelling the commercial property market, and its influence on predicting the model value of premises
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