Real Estate Values Research Articles

Green and Gold Buildings? Detecting Real Estate Market Premium for Green Buildings through Evolutionary Polynomial Regression

This study concerns the determination of empirical evidence of a real estate market premium for Green Buildings and of an aware role of the private real estate market as driver to foster-up urban and architectural sustainability and energy efficiency. In real estate markets, there is growing relevance of Green Buildings, especially in cities where the greater part of residential buildings is built before the first regulations on energy performance. Through policies oriented towards sustainable practices, a twofold goal can be achieved: energy consumption mitigation respecting the historical value for existing buildings, direct economic impacts on real estate values. In some metropolitan or urban contexts, the “green premium” for buildings can be understood as a real “gold premium”. This result has been highlighted and quantified with a real estate market analysis developed for a central area of an Italian mid-size city, pursued through the innovative tool of Evolutionary Polynomial Regression (EPR). The study highlighted a higher sale price for properties characterized by the best ecological characteristics and energy efficiency (+41.52%).

THE EFFECT OF RETURN ON ASSET, CURRENT RATIO, DEBT TO ASSET RATIO TO THE VALUE OF PROPERTY, REAL ESTATE AND BUILDING CONSTRUCTION SECTORS COMPANIES LISTED ON IDX BEFORE AND DURING THE COVID-19 PANDEMIC

The objective of this study is to determine the effect of return on assets, current ratio, debt to asset ratio to the value of property, real estate and building construction sectors companies listed on the Indonesia Stock Exchange (IDX) during 2019-2020. The selection of these research samples was based on the purposive sampling method resulting 16 companies. The methods used in this study were a descriptive quantitative method and a verification method. The data analysis technique used was a Dual Linear Regression Test Model by using the SPSS software application. The results of the study show that in the period before and during Covid 19, the variable of return on assets had a significant effect to the value of the company, the variable of current ratio had a significant effect to the value of the company (PBV) and the debt to assets ratio had a significant effect on value of the company (PBV).

The Production of Value Opinions by Specialized Valuers: Practical Sense and the Enactment of Judgment*

ABSTRACTThis article explores how valuers construct value opinions. Although some implications of outsourcing valuation to valuers for accounting purposes have been highlighted in the literature, we add a valuer perspective complementing the accountant's standpoint in order to obtain a fuller picture of these ramifications. Drawing on 62 interviews, we study the role of judgment in valuation and find that judgment is largely tied with the sensemaking of valuers. By examining the valuation activities of art and real estate valuers, we show that these specialized valuers follow a similar valuation process which allows them to grasp how to go on with valuation. This four‐phase process starts and ends by situating the opinion in its specific valuation context and is centered on iterations between researching, analyzing, and relativizing comparable data that may be adjusted to connect with a sense of what the value should be. Overall, judgment is shown to be enacted based on a practical sense of conducting valuation that includes a “gut feeling” of what represents a plausible value. This study suggests that the valuer's input should be recognized as situated, sense‐contingent, and vulnerable to the underlying politics and risks tied to providing an opinion. Our results also point to stark differences between how valuers approach the use of judgment compared to how judgment is typically exercised by accounting specialists.

Tufts and the Evolution of Debt-Discharge Theory

Copyright 1992 Deborah A. Geier.Consider poor Debtor, who purchased a personal residence for $130,000 several years ago with a hefty mortgage and today, like many others caught between the Scylla of the economic recession and the Charybdis of collapsing real estate values, finds himself losing his home. Perhaps he loses his home because he can no longer continue to meet the mortgage payments. Perhaps he simply stops making mortgage payments because he appreciates the economic reality that it would not be wise to continue to make payments on the $122,000 remaining mortgage when the fair market value of the home has plunged to $100,000. This approach would be particularly appealing if Debtor knew that the creditor would not, or could not, enforce any deficiency against Debtor's other assets.What are the tax consequences upon transfer of the home to the mortgagee infull satisfaction of the debt? Upon researching the law, Debtor's tax advisor learns that, because the debt discharged ($122,000) exceeds the fair market value of the property transferred in satisfaction of the debt ($100,000), the tax consequences will vary dramatically depending on whether the debt is styled "recourse" or "nonrecourse."

The Use of Geoinformation Collections of Prices and Pricing Variables in the Forensic Examination of Cadastral Valuation of Real Estate

The article offers a simple and descriptive approach to automating of solving the tasks of forensic examination of cadastral valuation of commercial real estate: office, retail, and warehouse premises. The authors address the application of geoinformation methods and assessment quality control. They provide a description of preliminary data processing methods, as well as construction of spatial rasters of real estate prices in various groups. For the first time, the arithmetic of spatial rasters for constructing the main multipliers and coefficients of the commercial real estate market has been studied. The proposed model will enable the forensic expert institutions of the Russian Ministry of Justice to adequately respond to the challenges of the time: to increase the volume and quality of expertise production while reducing their time. Government agencies and large consumers of valuation services will be able to significantly improve the efficiency of management, reduce the risks of underestimation or overestimation of transaction prices associated with the lack of transparency of evaluation results, collusion with interested parties, and appraisers will be able to improve the quality and cost of their service.

City love and place quality assessment of liveable and loveable neighbourhoods in Rotterdam

After the worldwide interest in global sustainability and climate change challenges, an increasing concern is voiced on local quality of life and neighbourhood liveability. In recent urban studies, human well-being, satisfaction and happiness studies are gaining much popularity in a local context (the ‘microcosmic city’). The present study seeks to identify the determinants of the residents’ appreciation for their daily environment, called here ‘city love’. The latter concept captures both tangible or material aspects of city life (‘body’) and immaterial and emotional dimensions of local quality of life (‘soul’). The present paper seeks to develop and test a new quantitative ‘city love’ concept, inspired by the soul and body conceptualisation of urban attractiveness for residents and visitors – based on a novel ‘feelgood’ index (FGI) and a ‘human habitat’ index (HHI) –, with a view to map out the citizens’ contentment or appreciation (called neighbourhood love index – NLI) at a district or neighbourhood scale in the city of Rotterdam. Our study utilises data from a quantitative survey among thousands of residents located in 63 neighbourhoods in this city. In addition, the Rotterdam dataset contains not only survey data, but also register data on these neighbourhoods, e.g., real-estate values, crime statistics, and socio-demographics, while geographical information from OpenStreetMap (OSM) is added as a complement. In addition to a multivariate analysis of the rich data set, the paper employs also a quantile regression analysis extended with fixed effects. The results show that the coefficients of the feelgood index (FGI) and the human habitat index (HHI) decrease slightly as we move up the distribution of the neighbourhood love index (NLI). This means that physical and functional aspects of neighbourhoods, e.g., access to such amenities as public transportation, sport facilities, and also streets with diverse attractions or bikeable and walkable road networks, become more important for the lower end of the distribution of the neighbourhood love index (NLI). Our neighbourhood-specific analyses show that the Rotterdam districts and neighbourhoods differ substantially in many physical and social-emotional respects, which calls for place-based policies and sub-local well-being initiatives.

Nature in the showcase. Naturbanization keys in Chile and Spain

Naturbanization relates protected natural areas (PNAs) to demographic and economic change, territorial impacts, and the residential function. The purpose of this paper is to identify the triggers of naturbanization. The methodological process examines real estate web sources that showcase offers in PNAs as a business strategy to capture clients and gauges its influence on environmentally aware populations in Chile and Spain through an analysis of data provided by a survey. Results indicate that the attraction of these natural areas also extends to other areas and that environmental awareness is part of a more public discourse that conceals the real estate value that the capitalist model places on nature. Thus, the current dynamics of the real estate market turn naturbanization into a stratagem for conceiving nature as a new commodity.

THE IMPACTS OF TASK COMPLEXITY, OVERCONFIDENCE, CONFIRMATION BIAS, CUSTOMER INFLUENCE, AND ANCHORING ON VARIATIONS IN REAL ESTATE VALUATIONS

Real estate valuation relies on real estate appraisers’ accurate assessments, which reflects the need to improve the objectivity of the valuation process. From the perspective of behavioral economics, appraisers are prone to numerous behavioral conflicts that could result in variations in their valuations. This study investigates the impacts of task complexity, overconfidence, confirmation bias, client influence, and anchoring on variations in real estate valuations. An online questionnaire was administered to 272 members of the Taiwan Real Estate Appraisers Association LINE group. Structural equation modeling was employed for analysis. A total of 150 valid responses were collected, yielding a valid response rate of 55.15%. The empirical results revealed that cognitive bias and client influence have significant and positive impacts on anchoring. Task complexity, overconfidence, and customer influence have significant and positive impacts on valuation variation. In addition to being the first study to explore the relationship between task complexity and valuation variation, this study also explored unconventional issues, such as the relationships between overconfidence, confirmation bias, and valuation variation. The results highlight the salience and value of behavioral economics-based analyses in empirical research on real estate valuation.

Sustainable Conservation and Reuse of Historical City Center Applied Study on Jeddah—Saudi Arabia

Developing a historical city center leads to city resilience and sustainable heritage conservation; changing the social fabric is a fundamental problem that affects historical and heritage areas. As a result of Jeddah’s development, the community of the heritage area changed to another without the same interest or appreciation for the region’s heritage. After listing it as a world heritage, the government is taking care of many conservation projects for Historic Jeddah. The research aims to evaluate a proposed project to reverse the last decade’s social changes of the local community as a step in achieving historic center sustainability. The scope of this proposal is to select adaptive reuse of the listed historic buildings and provide the area with state-of-the-art services. This proposed project will attract the targeted community to return, which will achieve the research purpose. The research followed three different methodologies; through a theoretical approach, Jeddah city urban development and growth were highlighted, and the currently enforced conservation policies regulating land use were introduced. Moreover, the analytical approach studies the possibility of social reform of the local community by implementing adaptive reuse for heritage buildings. Three sustainability pillars were tested through a survey of three different stockholders. The research discussed the various stockholders’ visions toward the aimed sustainable objectives. Hence, the applied part of the research evaluates the sustainability of the proposed project. The study finds that the local community is essential in the conservation process’s sustainability. Reusing the heritage buildings in the resettled original community will sustain the conservation process and increase the real estate value of the Jeddah historical areas.

The reasons for visiting urban parks: a case study in Greece

PurposeThe purpose of this study is to identify the reasons for visiting the urban park Antonis Tritsis in Athens, Greece, focusing on visitors’ motives and perceived characteristics of the park. When urban parks are located in areas that are particularly densely populated are characterized as green lungs and are easily accessible to the residents of the municipality. Therefore, the aim of the study is to analyze both the motives and perceived characteristics that visitors attribute in the case of the biggest urban park in Athens, Greece.Design/methodology/approachThe survey was conducted from August 2018 to March 2019 and the responses of 377 visitors were collected. Antonis Tritsis Park is the largest metropolitan park in the Attica, Greece. A principal component factor analysis was used and two-factor models were developed to determine the reasons for visiting the Tritsis Park.FindingsThe application of factor analysis revealed the presence of three components in case of the motives for the visit and six components concerning the perceived characteristics of the park. Results suggest that visitors’ motives are related to environmental and social benefits. The park contributes to increased real estate value. Educational and cultural activities are also found as important benefits, whereas lack of safety and limited infrastructure are considered important barriers to revisit the park.Research limitations/implicationsRecognizing the motivations of visitors, policymakers will be able to configure the park infrastructure according to the stated preferences.Practical implicationsRecognizing the motivations of visitors and the perceived characteristics of the park, policymakers will be able to configure the park infrastructure according to the stated preferences. If the services provided by the Tritsis Park are based on the preferences of its visitors, their satisfaction can be maximized and consequently improve the quality of life and contribute to sustainable development.Originality/valueThe innovation of the study is to analyze not only the perceived positive characteristics of the park but also barriers that affect visitors’ revisit intention toward the urban park of Antonis Tritsis. This is important in the case of metropolitan areas because the researchers understand what benefits are provided to them and how public administration should manage barriers to visiting urban parks so as to promote effective sustainability.

Особенности и направления оценки недвижимости для целей государственной экономической политики в условиях цифровизации

The article deals with topical issues of digital cadastral accounting, calculating the value of a real estate object in the context of the dynamics of market indicators. The statistics of the distribution of Russian cities by the indicator of the average level of real estate prices in the context of market types in 2020 are reflected. An approach to the formation of reports on the results of real estate valuation is proposed.

Improving Life Cycle Sustainability and Profitability of Buildings through Optimization: A Case Study

Building developers are continuously seeking solutions to increase saleable/rentable floor area and thus the profitability of investments, especially in large/dense cities where the real estate/rental values are high and shortage of available land results in smaller building footprints. Application of passive energy efficiency measures (e.g., thick insulation in walls) not only affects the life cycle sustainability of buildings, but also the floor area and its profitability. This can affect the decisions made on the choice of measures when aiming to improve sustainability. In line with limited studies in this context, a case study is presented here in which multi-objective optimization was used to explore the impact of various passive energy efficiency measures on the life cycle sustainability when accounting for the profitability of the floor area. The building case was a high-rise apartment based on a standardized building concept situated in different locations in Sweden, namely Vindeln, Gothenburg, and Stockholm. The findings indicated that, regardless of the location, use of (1) thick cellulose coating for the roof, and (2) moderately thick expanded polystyrene for the floor, were necessary to improve the life cycle sustainability. However, the optimal wall insulation was dependent on the location; in locations with high real estate values, the scope for using thick and conventional insulations (mineral wool/cellulose) was limited due to the significant economic loss caused by floor area reductions. In general, the optimization identified optimal solutions that could save up to 1410.7 GJ energy, 23 tonnes CO2e, and 248.4 TEUR cost from a life cycle perspective relative to the building’s initial design.

Fiber-broadband-internet and its regional impact—An empirical investigation

I analyze a quasi-natural experiment of fiber broadband rollout in a rural German county and investigate the impact on real estate values. I find that there are strong and significant effects of fiber broadband deployment, which indicate relevant personal benefits for customers. These findings add to the literature on the evaluation of broadband infrastructure investment.

The Impact of Urban Green-infrastructure Development on the Price of Surrounding Real Estate: A Case Study of Taichung City’s Central District

Amid increasingly common extreme climate events and urban heat-island effects, cities are at increased risk from a range of natural disasters. Green infrastructure emphasizes coordination and mutual benefit between, on the one hand, human construction and development, and the natural environment on the other, and can be adjusted to mitigate disaster risks. However, in addition to public-sector policies, urban green-infrastructure development requires incentives for private-sector implementation. This study examines the impact on the value of local real estate of three green-infrastructure projects in the Central District of Taichung City, Taiwan, both during and after their construction. Its findings show that green-infrastructure development can indeed drive-up urban real-estate prices, with slightly different rates of increase, according to type of real estate themselves. The knowledge of this dynamic provided by this study should make such development attractive to the private sector, and thus ultimately aid disaster prevention and improve the overall quality of the urban environment.

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.

REAL ESTATE DEVELOPMENT LEED CERTIFICATE SYSTEM AND EVALUATION OF APPLICATION SAMPLES IN THE SECTOR

Global warming, thirst, environmental pollution and the rapid consumption of natural resources have brought the construction of environmentally friendly, ecological buildings to the agenda in the construction sector. When it comes to sustainable, ecological and environmentally friendly buildings, we come across green buildings. Green buildings are considered as sustainable structures that start with the selection of the land, evaluated within the framework of the life cycle, designed with a holistic understanding, social and environmental responsibility awareness, suitable for climate characteristics and land conditions, consuming as much as needed, oriented towards renewable energy sources, using natural materials, and sensitive to ecosystems. is defined. With the increasing number of green buildings, standardization and certification studies have started. Certification systems aim to define green building by establishing general and valid measurement standards, to increase consumer awareness about the benefits of green building and to transform buildings. In this study, the concept of green building is discussed in terms of real estate development. In this context; The Hilton Garden Inn hotel project was examined and evaluated according to the Leed certification system and evaluated according to the real estate valuation and real estate valuation criteria.

Econometric Models for the Estimation of the Commercial Value of Residential Real Estate Objects in Latvia

Real estate market formation in Latvia occurs in the conditions of practical absence of a single system of methodological approaches to real estate estimation adapted for the Latvian conditions. In the article it is proved that along with individual estimation it is possible to use methods of mass appraisal of the commercial value of the real estate, constructed on the basis of econometric models. Application of such models will allow us to receive rather precise, authentic estimation of the commercial value of residential real estate in the conditions of dynamics of the Latvian market of real estate.

Why Urban Ecology Matters in Ethiopia

Three concurrent global environmental trends are particularly apparent: human population growth, urbanization, and climate change. Especially in countries such as Ethiopia in the Global South, all three are impacted by, and in turn have bearing upon, social justice and equity. Combined, these spatial and social factors reduce wellbeing, leading to increasing urgency to create urban environments that are more livable, resilient, and adaptive. However, the impacts on, and of, non-human urban residents, particularly on the ecosystem services they provide, are often neglected. We review the literature using the One Health theoretical framework and focusing on Ethiopia as a case-study. We argue for specific urban strategies that benefit humans and also have spillover effects that benefit other species, and vice versa. For example, urban trees provide shade, clean the air, help combat climate change, create more livable neighborhoods, and offer habitat for many species. Similarly, urban neighborhoods that attract wildlife have characteristics that also make them more desirable for humans, resulting in improved health outcomes, higher livability, and enhanced real-estate values. After summarizing the present state of knowledge about urban ecology, we emphasize components relevant to the developing world in general and pre- COVID-19 pandemic Ethiopia in particular, then expand the discussion to include social justice and equity concerns in the built environment. Prior to the ongoing civil war, Ethiopia was beginning to invest in more sustainable urbanization and serve as a model. Especially in light of the conflict and pandemic, much more will need to be done.

Second-hand housing batch evaluation model of zhengzhou city based on big data and MGWR model

How to better evaluate the value of urban real estate is a major issue in the reform of real estate tax system. So the establishment of an accurate and efficient housing batch evaluation model is crucial in evaluating the value of housing. In this paper the second-hand housing transaction data of Zhengzhou City from 2010 to 2019 was used to model housing prices and explanatory variables by using models of Ordinary Least Square (OLS), Spatial Error Model (SEM), Geographically Weighted Regression (GWR), Geographically and Temporally Weighted Regression (GTWR), and Multiscale Geographically Weighted Regression (MGWR). And a correction method of Barrier Line and Access Point (BLAAP) was constructed, and compared with three correction methods previously studied: Buffer Area (BA), Euclidean Distance (ED), and Non-Euclidean Distance, Travel Distance (ND, TT). The results showed: The fitting degree of GWR, MGWR and GTWR by BLAAP was 0.03–0.07 higher than by ND. The fitting degree of MGWR was the highest (0.883) by BLAAP but the smallest by Akaike Information Criterion (AIC), and 88.3% of second-hand housing data could be well interpreted by the model.

The impact of COVID-19 on valuers and commercial real estate valuation

The COVID-19 pandemic has provided the biggest recent test of the valuation profession and valuation standards, notably ‘RICS Global Standards — Valuation “Red Book”’ (‘Red Book Global’). Many positive lessons have been learnt from the crisis, the principal one being for valuers to be prepared for changing valuation practice in the light of severe market challenges, while still adhering to valuation standards requiring the provision of accurate, objective and evidenced advice. The demand for explicit valuation techniques and a comprehensive rationale, increased automation and digitisation, with more demanding governance is unlikely to be reversed following the initial impact of COVID-19. This paper analyses how valuers will continue to rise to these challenges.