Real Estate Values Research Articles

If you build it, they will change: Evaluating the impact of commuter rail stations on real estate values and neighborhood composition in the Rotterdam–The Hague metropolitan area, the Netherlands

In many metropolitan regions, transit-oriented developments are built to motivate the use of sustainable travel by promoting urban growth within walking distances of public transport stations. Changes in residential property values are a common way to assess the success of transit-oriented developments. However, studies that focus on property values alone have reported mixed effects. This paper attempts to evaluate the land value impact around commuter rail stations by analyzing the change in property values within the context of the transformation of socio-spatial neighborhood attributes. The study sets out to estimate the effect of Randstad Rail stations using real estate transaction data of residential properties and neighborhood socio-spatial attributes in the Rotterdam–the Hague metropolitan area of the Netherlands covering a period from 1985 to 2018. Adopting a quasi-experimental design, the effect is estimated for properties within different catchment zones around three commuter rail stations using a Difference-in-Differences Model and Multivariate Analysis of Variance. The results demonstrate the overall negative effect of the Randstad Rail on the value of residential properties at a distance equal to or less than 400 meters from the selected rail stations in the range of -18.8% to -11.5%. In contrast, a positive effect is observed for the residential properties located within a radius of 400 to 800 meters from the rail stations, which is estimated to be +15% to +33.2%. The findings also indicate a considerable socio-spatial transformation in the neighborhood composition after the opening of the rail stations in terms of neighborhood population density, land-use density, housing characteristics, and car ownership, which significantly affect the magnitude and direction of the impact.

Tourismophobia or touristification? An analysis of the impacts of tourism in Poblenou, Barcelona

Abstract Barcelona has been investing strategically in its infrastructures and in a new image to attract investments and tourists, especially from the Olympic project. The transformation impacts in favour of tourism, real estate and entertainment businesses have sparked a recent debate about tourismophobia and touristification. Taking this into account, this article aims to discuss the main impacts of tourism gentrification in Poblenou, Barcelona. This research analyses real estate valuation, the evolution of services in tourism and their conflicts in Poblenou considering a mixture of quantitative and qualitative data collected by bibliographic and documentary sources, spot observations and interviews conducted with the population involved. Despite the complexity that this topic involves, this analysis of tourism impacts in Poblenou contributes by bringing more clarity to this controversial discussion about tourismophobia and touristification. It is important to understand that, despite the positive impacts for the economy in terms of generating income and jobs, there are negative impacts, such as the increase in the cost of living, residents´ decrease in quality of life and the exodus of part of its population.

Impact of Land Use Change on the Value of Tourist Property

Purpose: The aim of the study was to assess the impact of land use change for tourism-related purposes on their value. The research was carried out in the West Pomeranian Voivodeship. The period of the research covered the years 2014-2019. The research covered all Polish communes, in which the land use was changed for tourist or recreational activities. The analysis covered the years 2014-2019. Design/Methodology/Approach: The resolutions of individual councils' communes regarding the change of the local spatial development plan in the scope of changing the use of the real estate for tourism were analyzed (in communes, where the local spatial development plan was in force). The analysis also included decisions authorizing the exclusion of land from agricultural or forestry production issued by executive bodies of communes. The research concerned the years 2014-2019 and covered all Polish voivodeships. To analyze changes in the land value due to the adoption or change in local spatial development plans, as well as to issue a decision authorizing the exclusion of land from agricultural and forestry production, data from estimation reports prepared for calculating the planning fee in the years 2014-2019 were used. For better result presentation, data on individual communes were presented at the level of voivodeships. Findings: Based on the conducted research, it can be concluded that change in the purpose of the property for purposes related to conducting agricultural activity results in increasing its value. Practical Implications: The article contains much valuable information, which may constitute the base material and reference further research conducted by scientific specialists studying the agricultural land market. The article can assist those wishing to invest in agricultural real estate and pursue tourism investments. Originality/Value: An analysis of changes in real estate value due to a change in its purpose to the tourist one may be an essential element in forecasting the financial consequences of adopting or changing the local land use plans.

Closing Time: The Local Equilibrium Effects of Prohibition

How do different local policies in a federal system affect local land values, production, and sorting? We study the question exploiting a large historical policy change: U.S. Alcohol Prohibition in the early twentieth century. Comparing same- state early and late adopters of county dry laws in a difference-in-differences design, we find that early Prohibition adoption increased population and farm real estate values. Moreover, we find strong effects on farm productivity consistent with increased investment due to a land price channel. In equilibrium, the policy change disproportionately attracted immigrants and African-Americans.

Enhancing the performance of a neural network with entity embeddings: an application to real estate valuation

Enhancing the performance of a neural network with entity embeddings: an application to real estate valuation

Engineering an Ecological Civilization Along Shanghai’s Main Waterfront and Coastline: Evaluating Ongoing Efforts to Construct an Urban Eco-Network

Recent ecological civilization policies make clear that China is willing to play a leading role in a sustainable green transition. But there are still discrepancies in definitions, appreciation and evaluation of ecological assets. This paper examines how Shanghai works on a sustainability transition, with a focus on its main urban waterfronts and coastline, in the context of an extremely high population concentration, world’s highest real estate values, and continuous urban development pressure. This paper will mobilize insights from the academic field of sustainability transitions to show how urban planning and design ambitions are translated into realities on the ground. In its latest Shanghai Master Plan (2017-2035), the city commits itself to set an example for other Chinese cities. Moreover, Shanghai’s city leaders want to inspire and push cities internationally to become more adaptable and resilient, both in the Global South and Global North. The spatially most radical action to realize this ambition is to create “a green and open eco-network” with 60% of Shanghai’s municipal territory to be used for ecological purposes, mostly wetlands. This paper will examine three urban planning and design projects that have key positions within this eco-network. On all three sites there are land-use conflicts, between urban development and ecological (re-)development. The first case is the recent transformation of no less than 120 km of former industrial dominated waterfront along the Huangpu River, of which half was completed between 2016 and 2021. The second case, Nanhui Coastal Wetland Reserve with adjacent Lingang New City; and the third case, Chongming Eco-Island, started both around the millennium and had a 2020 planning horizon. After learning lessons from their previous sustainable innovation journeys these latter two projects entered a new phase as part of the eco-network. The paper concludes with seven practical recommendations aimed to reduce discrepancies between expectations and their implementation in practice: 1) use clear definitions; 2) co-create a shared vision for the future; 3) stop building on vulnerable locations; 4) create conditions of social learning; 5) supervision needs to go beyond planning boundaries; 6) step beyond an anthropocentric approach; and 7) foster a more experimental approach.

A Mean-Variance Optimization Approach for Residential Real Estate Valuation

Abstract This paper introduces a new approach to the sales comparison model for the valuation of real estate that can objectively estimate the coefficients associated with the explanatory price variables. The coefficients of the price adjustment process are estimated from the formulation of a quadratic programming model similar to the mean-variance model in the portfolio selection problem and are shown to be independent of the property to be valued. It is also shown that the sales comparison model should minimize the variance of the adjusted prices, and not their coefficient of variation as indicated by some national and international valuation regulations. The paper concludes with a case study on the city of Medellín, Colombia.

Application of Multivariate Time Series Cluster Analysis to Regional Socioeconomic Indicators of Municipalities

Abstract The socio-economic development of municipalities is defined by a set of indicators in a period of interest and can be analyzed as a multivariate time series. It is important to know which municipalities have similar socio-economic development trends when recommendations for policy makers are provided or datasets for real estate and insurance price evaluations are expanded. Usually, key indicators are derived from expert experience, however this publication implements a statistical approach to identify key trends. Unsupervised machine learning was performed by employing K-means clusterization and principal component analysis for a dataset of multivariate time series. After 100 runs, the result with minimal summing error was analyzed as the final clusterization. The dataset represented various socio-economic indicators in municipalities of Lithuania in the period from 2006 to 2018. The significant differences were noticed for the indicators of municipalities in the cluster which contained the 4 largest cities of Lithuania, and another one containing 3 districts of the 3 largest cities. A robust approach is proposed in this article, when identifying socio-economic differences between regions where real estate is allocated. For example, the evaluated distance matrix can be used for adjustment coefficients when applying the comparative method for real estate valuation.

Disparities in cervical cancer incidence and neighborhood socioeconomic inequality in New York City

<h3>Objectives:</h3> In the United States, access to healthcare services is linked to socioeconomic status (SES). Cervical cancer is a preventable malignancy, and risk of developing the disease is linked to accessibility of preventive services such as screening and vaccination. The purpose of this study is to examine the association between neighborhood SES and the incidence of cervical cancer in women in New York City. <h3>Methods:</h3> We conducted a population-based, cross-sectional study of women residing in New York City from 2012-2016. We abstracted cases of cervical cancer and age-adjusted incidence rates by neighborhood (defined in terms of 55 Public Use Microdata Areas) from the New York State Cancer Registry and linked these data with the US Census Bureau's American Community Survey. We calculated an SES index for each neighborhood using a weighted combination of measures of crowding, real-estate values, poverty rates, incomes, educational attainment, and unemployment, which was developed and validated by the Agency for Healthcare Research and Quality. We fit a Poisson regression model with robust standard errors to estimate the association between cervical cancer incidence and neighborhood SES index, modeling SES as a continuous variable. We estimated the incidence rates, and rate ratio, associated with residence in lowest SES neighborhoods (10th percentile) compared with highest SES neighborhoods (90th percentile). <h3>Results:</h3> There were 932 cases of cervical cancer diagnosed between 2012-2016, corresponding to an age-adjusted incidence rate of 9.1 cases per 100,000 women years (95% CI 8.7-9.5). There was variation in age-adjusted cervical cancer incidence rates by neighborhoods, ranging from 4.4 cases (95% CI 2.9-7.4) to 14.7 cases (95% CI 10.8-19.5) per 100,000 women years. We identified substantial variation in socioeconomic and demographic factors among neighborhoods. Neighborhoods with the highest SES index values (top decile) were predominately populated by white residents (68.9%), with relatively few Hispanic (11.6%) and Black residents (4.5%). Conversely lowest SES index neighborhoods (bottom decile) were principally populated by Hispanic (60.1%) and Black residents (33.5%), and few White residents (3.0%). Neighborhood SES index was strongly associated with cervical cancer incidence. After adjustment for age, women residing in the lowest SES neighborhoods were 73% more likely to develop cervical cancer than those in the highest SES neighborhoods (inter-decile incidence rate ratio 1.73, 1.52-1.96, p<0.001) corresponding to incidence rates of 11.2 (95% CI, 10.3-12.2) and 6.5 (95% CI 5.9-7.1) cases per 100,000 women years respectively. <h3>Conclusions:</h3> In New York City, cervical cancer rates in neighborhoods with low SES are substantially higher than those in neighborhoods with high SES, despite their geographic proximity. Neighborhood-level preventive interventions may be an important component in eliminating inequities in cervical cancer incidence.

Sea level rise hazardscapes of North Carolina: Perceptions of risk and prospects for policy

Like other risk management strategies, effective sea level rise response must suit local socio-ecological contexts. These include particular civic discourses, perceptions of agency, and analytic deliberation, the latter integrating scientific information with local knowledge and social values. We describe three cases in eastern North Carolina, in the southeastern United States, with differing conceptions of economic development, environmental change, governance, property rights, and social collectivities. On the flat coastal plain and barrier islands, wetland conservation, soft engineering, and other coastal zone management options can protect shorelines from flooding and erosion, whereas hard engineered structures can cause long term problems. Fearing that scientific information would lower real estate values, a well-financed advocacy group averted public discussion of proactive policy by deploying discursive and legislative strategies to suppress scientific decision support. We find that a study site with high financial resources showed the most resistance to science-based adaptation in the public interest, whereas a study site with minimal financial resources was the most receptive. Ideology proves to be a significant consideration in the framing of information to advance coastal policy.

ANALYSIS OF REAL ESTATE VALUATION METHODS (ON THE EXAMPLE OF RESIDENTIAL BUILDINGS)

One of the most important conditions for the viability, existence in this sector of the market, as well as a necessary condition for the functioning of the real estate market is the availability of information infrastructure. It, in turn, provides market participants with up-to-date, complete and reliable information, and also performs an effective analysis of real estate valuation methods, which will allow for a deeper, objective and complete assessment of land and residential assets

Pengaruh Keputusan Investasi, Keputusan Pendanaan dan Ukuran Perusahaan Terhadap Nilai Perusahaan (Studi Empiris Pada Perusahaan Properti dan Real Estat Yang Terdaftar di Bursa Efek Indonesia Periode 2015-2019)

This study aims to examine and analyze the effect of investment decisions, funding decisions, and firm size on firm value in Real Estate and Real Property companies on the IDX in 2015-2019. The research method carried out in this study using purposive sampling method and obtained a sample of 15 companies. Hypothesis testing is done by using multiple linear regression analysis. The results of the study prove that investment decisions have a positive effect on firm value, funding decisions have a positive effect on firm value and firm size has a negative effect on firm value.

Pioneering institutions in sector on real estate appraisal

The institutions that take the leading role in the evaluation of the real estate should be determined. Real estate valuation takes place in a multi-headed organizational structure and is benefited from institutions in both the public and private sectors. The method of determining the institutions will be examined through the social network analysis methodology of the network of relations between public institutions and the private sector. With the numerical and visual analyzes the following questions will be examined: "Which is the director and responsible institution to undertake the task of collecting the institutional structure under one roof?", Which is the institution that uses the real estate appraisal results most in their works?, Which institution is the most cooperating in acquiring data on real estate appraisal?, Which are the most known institutions that make real estate appraisal?, Which of the institutions that make real estate appraisal are most trusted?”. The study will be conducted in order to find answers given to the related questions. As a result, relations between institutions engaged in real estate appraisal business are assessed by social network analysis and interoperability issuing "awareness network" will be put forward.

Added value of sites suitable for sustainable office development

Abstract Valuations of real estate are widely used for various purposes and it relied always upon the financial and other markets. Valuation methodology is based on the operation of the free market economy and the real estate properties. The issue of certified properties is relatively new in the field of real estate valuation and is not sufficiently explored. Certified buildings are preferred by major corporate tenants with international field of activity who often have ethical rules for sustainable development. Therefore, certified properties are attractive to international commercial real estate investors who have higher purchasing power and are willing to pay a higher purchase price. Sustainable property certification is an element affecting the market value of the property. The purpose of this presented research is to quantify the impact of property certification on the value of office properties in Prague and subsequently to determine the impact of sustainability certificates on the market value of the land by using basic valuation techniques. The outcome of the project could be used by real estate valuation experts as a guideline to consider the future project certification and its impact on the land market value.

MODIFICATION OF THE COMPARATIVE VALUATION METHOD FOR VALUATION OF A SET OF REAL ESTATE WITH AN INSUFFICIENTLY LARGE BATTERY OF COMPARABLE PROPERTY

The aim of this paper is to present a suggestion for the modification possibility of a selected valuation method which can be used to value real estate in case it is not possible to find a sufficiently large battery of comparable real estate to determine the estimate of the market price. The modification of the selected valuation method consists in the double use of correction coefficients in the creation process of the so-called standardized unit of thought which serves as an intermediary in the valuation of specific real estate. Based on the results achieved by the application, it was concluded that such a modified valuation method can be used to estimate the market price of a set of real estate more quickly and efficiently.

A Study of the Relationship between Corporate Governance and Non-business Real Estate

Corporate non-business real estate can be used for the private benefits of controlling shareholders, but is also likely to enhance shareholder wealth. This study explores the impact of corporate governance to address this contradiction, particularly the ownership-control disparity on non-business real estate. We further examine the moderating effect of foreign blockholders on the relationship, then conduct additional analyses on the relationship between non-business real estate and firm value. The results are as follows. First, the disparity has a consistently positive relationship with non-business real estate, which implies that corporate non-business real estate can be utilized for expropriation for the benefit of controlling shareholders. Second, the relationship between the disparity and non-business real estate is mitigated by foreign blockholders. Third, we find that non-business real estate has a negative relationship with firm value. This result implicates the inefficiency of non-business real estate and the possibility of agency problem. Forth, investment in non-business real estate is likely to decrease firm value, compared with investment in core business. This study revisits and extends corporate governance research in terms of non-business real estate by identifying the presence of agency problems and monitoring effects of outside blockholders.

Prior information in econometric real estate appraisal: a mixed estimation procedure

PurposeThe purpose of this paper is to present how prior knowledge about the impact of real estate features on value might be utilised in the econometric models of real estate appraisal. In these models, price is a dependent variable and real estate features are explanatory variables. Moreover, these kinds of models might support individual and mass appraisals.Design/methodology/approachA mixed estimation procedure was discussed in the research. It enables using sample and prior information in an estimation process. Prior information was provided by real estate experts in the form of parameter intervals. Also, sample information about the prices and features of undeveloped land for low-residential purposes was used. Then, mixed estimation results were compared with ordinary least squares (OLS) outcomes. Finally, the estimated econometric models were assessed with regard to both formal criteria and valuation accuracy.FindingsThe OLS results were unacceptable, mostly because of the low quality of the database, which is often the case on local, undeveloped real estate markets. The mixed results are much more consistent with formal expectations and the real estate valuations are also better for a mixed model. In a mixed model, the impact of each real estate feature could be estimated, even if there is no variability in the sample information. Valuations are also more precise in terms of their consistency with market prices. The mean error (ME) and mean absolute percentage error (MAPE) are lower for a mixed model.Originality/valueThe crucial problem in econometric property valuation is that it involves the unreliability of databases, especially on undeveloped, local markets. The applied mixed estimation procedure might support sample information with prior knowledge, in the form of stochastic restrictions imposed on parameters. Thus, that kind of knowledge might be obtained from real estate experts, practitioners, etc.

Проблеми удосконалення податку на нерухоме майно в Україні в контексті світового досвіду

The purpose of the article is to reveal the peculiarities of real estate taxation of individuals in the countries of the world and to develop recommendations for its improvement in Ukraine. The features of taxation of real estate of individuals in the USA, Germany, Sweden, Poland, Bulgaria, Italy, France, Great Britain, Lithuania and others are presented. The advantages and disadvantages of taxation of real estate of individuals in the countries of the world are identified. Attention is focused on methods for determining the cadastral / assessed value of real estate for taxation. The necessity of reforming the system of taxation of real estate of individuals in Ukraine has been proved. The introduction of a cost approach to the appraisal of real estate in Ukraine requires a number of sequential actions: centralization of management and maintenance of the real estate cadastre in one state governing body; development of regulatory support for the creation and operation of the State cadastre of real estate, the mechanism and methods of state cadastral valuation; inventory of real estate objects with the assignment of a cadastral number; formation of the system of the State cadastre of real estate. The approaches to the establishment of tax exemptions on real estate of individuals in the countries of the world and in Ukraine have been investigated. In Ukraine, the basis for taxation of real estate of individuals should be the cadastral / assessed value of real estate with its gradual approach to the market value. The introduction of a cost approach to the appraisal of real estate in Ukraine requires: centralization of competences in one state governing body; development of regulatory support for the creation and functioning of the State cadastre of real estate, the mechanism and methods of state cadastral valuation; inventory of real estate objects with the assignment of a cadastral number; formation of the system of the State cadastre of real estate; taking into account the experience in the formation of the Land Cadastre, it is necessary to ensure the transparency of the tax on real estate of individuals through digitalization of tax services and administration processes (obtaining in electronic form a certificate of the cadastral / estimated value of property by cadastral number or postal address, paying tax for the Electronic Cabinet, having access to information on the procedure for calculating tax on each property, tax rates, the availability of benefits, debts, payment history, etc.). When levying a tax on real estate, it is necessary to assess feasibility of applying tax incentives in terms of differentiating the standard of living of the population in Ukraine in order to protect socially unprotected segments of the population. Property tax benefits for individuals should be linked to the cadastral / assessed value of the property by establishing a non-taxable minimum amount of the assessed value of the property and apply to only one residential property where the owner permanently resides.

Практичні підходи до вдосконалення оцінки майна територіальних громад

Abstract. Introduction. The years of independence in Ukraine, which were marked by the establishment of a system of free market relations in the economy, were reflected, in particular, in the system of territorial governance. Many processes that were not present in the system of public property management, or were not considered important, now occupy a significant place in the process of effective management of municipal property - and the mechanism of property evaluation of the territorial community has become one of them. Purpose. The main purpose of the article is to study the priority areas for improving the efficiency of property valuation of territorial communities, in particular, real estate, in the modern economic system of Ukraine, as part of a system of effective management of public property. Results. The article considers a number of aspects that connect the system of community management in general and the mechanism of property assessment of territorial communities in particular. First of all, the priority measures of the management system, which require the creation of all conditions for the normal functioning of the community as a whole and each resident individually, have been analyzed, and the related concept of "maximum benefit" has been considered. An analysis of the views of various researchers on the characteristics and criteria for evaluating the activities of the management system and approaches to assessing the effectiveness of communal property, as relevant to assess the full value of the property of the local community. There are two levels of management system. The issues of effective real estate management have been considered and a number of concepts related to management in this area have been analyzed - "optimal use of real estate", "asset management" - and their significance in the context of the current economic and political situation has been analyzed. Conclusions. In the current economic situation and the tendency to change the size of territorial entities, when several different communities come together, the mechanism of property valuation of the territorial community becomes more common and acquires new importance in the management of public property. One of the main types of property valuation of a territorial community is real estate valuation, the importance of which grows with the number of property owners.

Пріоритетні напрями діяльності органів місцевого самоврядування в контексті підвищення ефективності оцінки майна територіальних громад

Abstract. Introduction. The property management system in general, and the land use system in particular, in Ukraine, are currently undergoing a process of change. The development of a market system of relations promotes the establishment of cooperation between public authorities and territorial communities, and the sphere of community property management is one of the most promising areas for the development of this cooperation. However, the achievement of significant positive effects in the development of this area is possible only if some property management tools are improved - and also is the mechanism of property assessment of territorial communities. Purpose. It has been given the state of development of the mechanism of assessment of state property, the purpose of this article is to study the priority areas of local government in the context of improving the effectiveness of assessment. Results. In the process of analyzing the current situation in the field of municipal property management, based on the work of V. Alekseev, the author concludes that there are significant problems in the control of state property, which needs to take a number of steps, including increasing the frequency of use and evaluation property. A detailed analysis of a number of basic concepts of the real estate management process at the local level are the purpose, main goals, objectives of management. The various aspects and characteristics of real estate that affect its value are considered. Based on the preliminary data, the main activities of local governments in the context of improving the efficiency of property assessment of territorial communities have been identified. The mechanism of property valuation for calculating the rental rate and market value of real estate and their importance in the context of improving the property management system is analyzed. A number of recommendations are given to local communities to improve the property management system through the use of property valuation. Conclusions. The process of property valuation in today's community property management system is imperfect and requires a number of changes to improve its efficiency. Achieving results in this matter is possible only if the interaction between the state and society through compromise.