Polish Real Estate Research Articles

Predicting Social Inequality in Poland Using Price Dispersion on the Real Estate Market

Measuring and predicting price dispersion on the real estate market is an important issue for both investors and policymakers. Price dispersion in the housing market can be seen as an additional dimension for measuring social inequality and one of the main goals of public policies that focus on life satisfaction and the accumulation of permanent wealth. The article considers the Polish real estate market and proposes the prediction methods of four measures of dispersion. They are based on quantiles and allow overall measurement of dispersion. In the prediction of dispersion measures the plug-in predictors utylizing longitudinal mixed models are proposed. Furthermore, the ex ante prediction accuracy measure called the quantile of absolute prediction errors (QAPE) is assessed using the residual bootstrap estimators. QAPE allows for a comprehensive description of the distribution of prediction errors, thus fostering discussion of possible various market scenarios.

Tokenomics In Polish Real Estate – A High-Tech Revolution Or “Dream of The Digital Age”

Tokenomics is one example of a buzzword that is a combination of the terms token and economics. This neologism is not only a linguistic innovation, but also fully reflects the essence of current trends related to the use of new technologies in business transactions. The digitization of economic transactions is possible thanks to blockchain technology. It is no longer disputed that it is a key technology for guaranteeing the immutability of historical data, which translates into the possibility of safe storage and exchange of goods.

Analysis of Changes in Trade in Developed Land Property in Poland between 2017 and 2020

In contemporary socio-economic reality, there are many elements, both material and non-material, that play a significant role in shaping it. Treating economics as a science that studies people’s behaviour in producing, distributing, and consuming goods and services, then undoubtedly, one of the most critical elements shaping this process is real estate, which cannot be overestimated in market processes. From the beginning of the formation of the market economy, real estate was at its very centre and determined directly and indirectly the direction of development of this economy. This author focused on identifying changes taking place in the trade in developed land properties on the Polish real estate market in terms of its forms. The research procedure used methods of literature criticism and descriptive statistics.

The concept of sustainability in housing markets – challenges for Poland

The aim of the article is to discuss selected aspects of sustainable development and the conditions for its implementation in relation to the housing market. A critical review of the literature will make it possible to distinguish the political implications that should be taken so that the current functioning of the real estate market does not burden the environment too much, which would enable it to meet the needs of present and future generations, but at the same time not hamper the development of the market and satisfy the needs of the society. According to the Polish real estate sector four groups of phenomena are discussed, namely: social problems related to the functioning of the sector, problems of real estate cycles and crises, spatial allocation of real estate and urban development, and ecological problems as key to the description of sustainable development.

The experience of the Polish real estate market as a guide to transition of real estate sector in Vietnam

Motives: The main thesis of this article is that the experience of the Polish path of development of the real estate market and the real estate valuation system can serve as useful guidance for Vietnam. Aim: The aim of this article is to present in a historical context the changes that have taken place in the approach to real estate value and the regulations governing the real estate market and valuation in Poland. The rationale for this aim is that Poland has already come a long way on the path of political transformation, while Vietnam is at an earlier stage of this path. Therefore, it can benefit from the Polish experience. Results: The result is a set of information that can be turned into guidance by relevant institutions operating in Vietnam.

Factors affecting SMEs growth: the case of the real estate valuation service industry

Research background: Based on the literature, several ways of assessing the conduct of business and a number of factors influencing the growth and development of the companies can be identified. However, the diversity of business entities and their business environment raises the importance of considering the unique nature of the industry in the selection of performance measures. Our research focuses on real estate valuation firms that provide information and consulting services to real estate markets. Purpose of the article: As professional practice shows, there are different business models for property valuation. These businesses differ in their organisational and legal form and the type of valuations performed, the type of client served, or the scope of services provided. The main purpose of the research is to identify factors that significantly affect the development odds of valuation companies in Poland, especially the growth of income. Methods: The study was based on data collected from the survey of Polish real estate valuers. The analysis was conducted on a sample of 277 professionals who own valuation companies and were certified no later than the end of 2014. A quantitative analysis using a logistic regression model was conducted to identify the factors that influence the prospects for valuation business growth. Findings & value added: The research confirms the relationship between the way of conducting real estate valuation activities and its development chances. The most important factors are a spatial and substantive range of services, cooperation and employment, and clients' profile. Demographic characteristics were also found to be significant. Although the results presented here are based on data from the real estate valuation industry, their relevance is much broader. The findings provide a better understanding of the factors that influence the performance and success of SMEs, particularly in the information and consulting industry.

Connection of Lands, Buildings and Structures with Business Activity - Direction Of Interpretation Changes

The article presents the interpretation of the regulation of Polish Real Estate Tax resulting from the judgment of the Constitutional Tribunal of 24 February 2021, SK 39/19. In this judgment the Constitutional Tribunal questioned the current interpretation of the connection of land, building or structure with conducting business activity. The author describes necessary changes in interpretation of the regulation, which results from this ruling. The article explains who is affected by the new understanding of the regulation and what is the relationship of the new interpretation with the suspension of business activity. The major part of the considerations is devoted to the effects of the Constitutional Tribunal's judgment in relation to restrictions implemented on the conduct of economic activity in connection with the COVID-19 pandemic. The author presents the position according to which subjects who could not conduct economic activity by the regulation should not pay for this period the higher rate of property tax provided for real estate owned by entrepreneurs.

The perspective of coworking offices in the context of the small business development

Basing on the experience of countries where coworking is developing dynamically, the study assesses the development prospects of coworking in Poland. It identified the opportunities and threats as well as strengths and weaknesses of this form of approaching office space in the conditions of the Polish real estate market. SWOT analysis is used as a methodology to capture the advantages of new concept of business office. To this end, statistical and econometric tools were used. The study revealed strong entrepreneurs' attachment to the ownership of office buildings used for their own purposes and the correlation between the number of coworking facilities and the number of small companies, especially in the service sector. The advantages and disadvantages of coworking offices were also pointed out, in the context of the expectations of modern lessees. The opinions of women and men about the features typical of coworking offices vary considerably, which also may be a subject for further research. The existing surveys from the local market were also referred to, which may serve as a premise for further studies. This requires a global research to capture the change and its implication on real estate market in Poland and its impact on office market. The study recommendation is to celebrate and entrepreneurial activity and introduce entrepreneurial studies at schools to influence a positive change. Research indicates that the working culture is changing, which are reflected in the use of office space, and that after a period of social distancing the approach to shaping social relationships within office work will change as well. The research might therefore assist in revealing further “understanding” forms of interactions and mechanisms of decisions about best form of office space. The study findings fill the research gap in the field of office space sharing. They are also an important indication for potential investors who are looking for new investment areas in the times of pandemic. Moreover, the analyses results will allow lessees of traditional office space to consider alternative solutions for the future while seeking to improve their business situation after restrictions imposed in 2020. In this study, has enabled new insights into the coworking office and social role this form of work, which capture the behavioral and cultural factors.

New forms of rental dwelling in contemporary Poland

Aim. The subject of the article are types of rental dwelling in contemporary Poland. The aim of this paper is to present the forms of contemporary living in terms of age groups, way of study or work and financing possibilities of Poles compared to other countries in the world. Methods. The authors of the article present selected new forms of rental dwelling in Poland in context of changes after the collapse of communist system in 1989. The article discusses the present situation of Polish real estate market basing on European statistics. It indicates the problem of limited availability of housing and presents solutions implemented by the government and the private sector market. Results and Conclusion. Poland is one of the European countries with the highest rate of people living in overcrowded apartments or houses. The solutions introduced by the state in order to increase the availability of housing and allowing the alternative to buying a flat, encounter difficulties with spatial planning regulations. In the absence of sufficient support of the government private sector market see its chance for profit in constructing and renting apartments. Cognitive value. The article describes the phenomenon of a growing private rental, that could be a shift in dwelling characteristic of Poles and influence the housing market. It presents new forms of developments, showing the background of their creation.

THE CONCEPT OF REAL ESTATE TAXATION BASED ON THE AD VALOREM PRINCIPLE

The purpose of this paper is to evaluate the pros and cons of ad valorem real estate taxation in the context of the reform of the Polish real estate taxation system. A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This contrasts with a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible proper-ty. Real property (also called real estate or realty) means the combination of land and im-provements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real proper-ty is often taxed based on its classification. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial, and vacant real proper-ty. In Israel, for example, property tax rates are double for vacant apartments versus occu-pied apartments.

Innovation Management in Polish Real Estate Developers in the Renewable Energy Sources Context

This paper analyses innovative activities, including renewable energy sources (RES) in the housing market, the motivations for their introduction, effectiveness, benefits, limitations and management—which are open and current problems of Polish and international sustainable construction. This problem is part of a research gap concerning, among others, the role of developers and entities responsible for introducing energy innovations into housing construction. The aim of the paper is to analyse innovations, with particular emphasis on RES, introduced by residential developers in Poland in the context of global trends. The work is based on the results of surveys conducted among developers of the primary housing market. The research of 130 questionnaires received from entities such as multi-storey buildings and multi-family houses in Poland, was carried out on a nationwide sample using the CATI Computer Assisted Telephone Interview method. The results of the survey research were summarized by setting research hypotheses, which were verified using the significance test based on the Laplace normal distribution. The research conducted has shown that residential developers in Poland point at, among others, competitive pressures, concern about the quality of products and services offered, increasing market share or satisfaction and increasing customer requirements. This clearly shows that the implementation of innovation is perceived through the prism of increasing competitiveness. Furthermore, developers operating in the more competitive markets—nationwide and on the market of the five largest Polish cities, usually larger companies, showed a greater willingness and even the need to introduce innovation in their activities. In the study, developers as one of the barriers of introducing innovations, apart from the lack of adequate support, mainly from public entities in the field of, inter alia, appropriate law favouring the implementation of innovations and financial support, indicate difficulties of the client’s market manifested by the lack of knowledge and identification of needs in the field of innovation, and the lack of willingness to pay a higher price in regard to the product with higher innovation level. In the paper, the authors recommend developers, among others, to implement in the management process the identification of possible to implement innovations and the customers’ needs in innovations with education in the field of possible innovations and its benefits. The article indicates the need to intensify the implementation of innovations in housing projects in order to increase competitiveness and to meet the European Union’s requirement regarding the use of renewable energy sources.

The More, the Emptier: The Consequences of Growing Concentration in Urban Office Space in Poland

ABSTRACT The paper identifies and measures the economic consequences of the rapid saturation of commercial real estate markets in Poland. We document a negative link between the growing concentration of office buildings in the Polish real estate submarkets and building-level vacancy rates. Slower absorption in the areas that are more densely built up is accompanied by lower asking rents. The impact of saturation in real estate markets on building-level fundamentals is heterogenous across different classes of real estate assets, and high-quality buildings are less vulnerable than the low-quality buildings. Our findings demonstrate that higher density in office space harms investors.

Powierzchniowy a katastralny system opodatkowania nieruchomości w Polsce

The article explores the economic aspects of area and value-based taxation of Polish real estate. It begins with the presentation of information on the conditions of property taxation in Poland. Next, a review of the research on the cadastral tax is provided, as well as the assumptions of the econometric model used for mass valuation of the analysed real estate. The main part of the article contains the results of the simulation of replacing the property tax with an ad valorem one. Particular attention is given to the impact of the cadastral tax rate on the revenues of municipalities and changes in the tax burden on individual properties. The main aim of this study was to show the importance of the proper setting of the ad valorem tax rate in the process of reforming the property taxation system.

Can Web Search Queries Predict Prices Change on the Real Estate Market?

This study aims to explore whether the intensity of internet searches, according to the Google Trends search volume index (SVI), is a predictor of changes in real estate prices. The motivation of this study is the possibility to extend the understanding of the extra predictive power of Google search engine query volume of future housing price change (shift direction) by (i) the introduction of a research approach that combines the advantages of the complementary use of cross-correlation analysis and machine learning classification algorithms; (ii) applying the multi-class HPI values classifier which allows predicting the housing price increase, decrease or relative stability; (iii) exploiting the SVI that relates to interests in both ‘real estate’ and ‘credit to buy real estate’; (iv) evaluation of the introduced approach in the context of the Polish real estate market. The main theoretical contribution of our work is a confirmation that the freely available information regarding Google user searches can provide an in-depth insight into enriching the generally accepted statistics on supply and demand in the real estate market. From the practical perspective, this research confirms that SVI can be associated as a sole determinant to anticipate the housing price change with time-lag sufficient for making decisions regarding the purchase (sale) of individual property or the real estate market control. Such findings can be also helpful for researchers who intend to use Google Trends data as an extra variable from demand side to improve the prediction accuracy if it is included in the model which is based on the existing housing prices determinants.

Smart and Green Buildings Features in the Decision-Making Hierarchy of Office Space Tenants: An Analytic Hierarchy Process Study

In the paper, we investigate the role of smart building or green building innovations on the Polish real estate market using the Analytic Hierarchy Process (AHP) method on the group of experts (consultants, managers, brokers) that are active on the office market in Krakow (study area). The findings point towards the highest relevance of the localisation factor, but also at the relatively low importance of the features of a sustainable building: building automation and information technology systems, as well as energy efficiency or certification. The findings suggest that despite the growing interest in sustainability and technological advancement amongst office market participants in Krakow, the relative importance of smart and green building features in their decision-making processes is relatively low. The study has some interesting practical implications. The knowledge regarding the relative importance of decision criteria can be valuable for developers and investors because the anticipation of tenants’ expectations is directly linked with return on investment and innovation premiums.

Changes in Housing Availability Indicator in Selected Polish Cities in the Years 2006 to 2018

Abstract Research purpose. Housing availability indicator shows the area of residential real estate possible to purchase for the average monthly wage in the enterprise sector. The research carried out in this paper is aimed at determining the current level of housing availability indicator and its detailed analysis, taking into account the dynamics of changes in 2006 to 2018. This analysis will be carried out for primary and secondary market for selected Polish cities. Design/Methodology/Approach. Calculations were based on the average transaction prices obtained from the transactional database of residential real estate of the National Bank of Poland and the value of the average monthly remuneration in the enterprise sector obtained partly from statistical data and official journals of the Central Statistical Office. Findings. The analysis shows that the indicator of housing availability in Poland, despite the visible upward trend, is at a very low level, placing Warsaw at the first place. In addition, the extension of the analysis to the division of the housing market into the primary and secondary market provided more information about shaping the housing availability indicator. Whereas in the primary market in individual cities its value was at a similar level, the secondary market was subject to greater fluctuations. Originality/Value/Practical implications. This paper is of practical nature. Due to the asymmetry of information on the Polish real estate market, especially regarding housing prices, knowledge about the value of the housing availability indicator in Poland may be exceptionally valuable, especially for people interested in the housing market, including individual investors and market practitioners, as an auxiliary source of information in purchasing decisions of households.

Problematic aspects of registering ecological land-use in the Real Estate Cadastre

Land-use as a part of the earth’s surface used in an unitary manner, constitutes as one of the objects of Real Estate Cadastre in Poland. This register gathers data concerning actual grounds status, buildings and premises. Cadastre is carried out in an informational system on the basis of Geodetic and Cartographic Law and its implementing act. The contents of mentioned legal regulations are very general in terms of capturing and revealing data on ecological land-use. The rules are also related to environmental protection law. It often makes its proper interpretation difficult. In this article, the study aimed to systematize information about recording ecological land-uses in Polish Real Estate Cadastre has been performed. Practical and legal solutions concerning determination of the ecological land-uses coverage have been presented. The authors evaluate an order of individual activities leading to ecological land-use disclosure in cadastral database. The consequences and constraints in enforcing the ownership to land property or its parts where ecological land-use was allocated are analyzed as well. The statistical data in the scope of number and surface area of ecological land-uses in individual provinces have also been demonstrated.

A Generalised Model of Ground Lease Pricing

In this paper, we present a generalization of Mandell’s model for the estimation of ground lease pricing. We adjust the model so that it fits, in particular, the Polish legal regulations and situation of the Polish real estate market. The model involves two aspects. The first is the perpetual usufruct, a form of owning the ground similar to a long-term lease, but having some specific features. The second is allowing lease rent adjustments after some fixed period, meaning we consider the situation where the payments are fixed during certain periods as defined in the contract. The proposed model determines the minimum lease amount for the owner, which is the rate at which it is beneficial to lease the property, and the maximum for the lessee, which is the amount above which the lease is unprofitable for the leaseholder or perpetual usufruct.

Disequilibrium in the real estate market: Evidence from Poland

The article analyzes the situation on the Polish residential real estate market as a developing market with emphasis on market demand and market supply which were evaluated in two separate approaches. States of disequilibrium were analyzed on a local real estate market in the Polish Region of Lower Silesia based on the data supplied by the Promocja Center for Economic and Organizational Implementation (Sekocenbud) and the Register of Real Estate Prices and Values. The study aims to verify the hypothesis postulating the occurrence of an information cascade on the real estate market and its influence on the number of transactions. The above hypothesis was verified with the use correlation methods and the Granger causality test. The results point to: 1) long-term disequilibrium on the Polish real estate market, 2) the presence of synergistic systemic processes with time lags manifested in property prices, 3) the influence of an information cascade on the number of concluded transactions.

Reflecting Sustainability in Property Valuation - Defining the Problem

Abstract A major topic in discussions about environmental protection is the concept of sustainable development utilizing the economic criteria enhanced by environmental, social and ethical aspects. The concept inspired a new approach to construction and paved the way for the idea of sustainable buildings. Sustainable buildings are expected to offer economic benefits to their owners and tenants that should be reflected in property values. The authors test a hypothesis that the real estate market in Poland still fails to incorporate sustainability in property valuation. The article seeks evidence in support of this hypothesis, as well as attempting to find out why the market does not pay a premium for sustainability. To accomplish the purpose of the research, a systematic literature review, an analysis of the pilot studies available in Poland and a preliminary assessment of the ability of valuation methods to reflect sustainability in property valuations are performed. The focus of the research is on the office property market, one of the fastest growing and most modern segments of the real estate market. The conclusion drawn from the research is that, of all respondents surveyed by international studies, Polish developers, property owners, tenants and valuers know the least about sustainable building and that the evidence of the benefits of sustainable building is still unavailable in the Polish real estate market. Such benefits are rather hypothesized to exist and considered theoretically rather than empirically confirmed. It is possible that the reasons for these findings are the short period of research and problems with distinguishing sustainable buildings from conventional ones, which make it difficult for valuers to reflect the benefits of sustainability in valuations. Nevertheless, a new approach to property valuation encompassing environmental, ethical and moral aspects seems necessary. This would encourage sustainable building and green investment strategies. Sustainable valuation would also be an opportunity for the development of the valuation profession.