Rental Rates Research Articles

Proportion of Nonindustrial Private Forest Lands That Potentially Can Be Leased to Bioenergy Enterprises to Grow Short Rotation Woody Crops

Abstract Determining how much nonindustrial private forest (NIPF) land could potentially be allocated to growing short rotation woody crops (SRWCs) is critical for estimating the future supply of woody biomass for biofuels and overall bioenergy production. This study estimated the proportion of the land NIPF landowners would be willing to allocate to SRWC cultivation. In view of the bounded nature of the dependent binary variable [0,1] and model performance, a fractional logit regression model was used to estimate model parameters. The estimated proportion of land allocated to SRWCs was positively influenced by the rental rate per acre, owning land for investment or fee-access hunting purposes, and the landowner’s age. In contrast, size of the ownership, owning land for the production of agricultural products, and residing on the land negatively influenced the proportion of land allocated to SRWCs. Lease contract duration, location of the largest tract owned, owning land for personal recreation or ecosystem services, and landowner familiarity with the concept of alternative fuels production did not influence the proportion of land allocated to SRWCs. These results will contribute to a better understanding of SRWC biomass supply from NIPF land and provide important benchmark information for conducting feasibility analyses of biofuel and biopower manufacturing in Mississippi and other states with abundant woody feedstocks. Study Implications: To achieve targeted levels of bioenergy production and carbon dioxide (CO2) emission reductions and diversify NIPF landowner income, participation of NIPF landowners in woody biomass feedstock production will be critical, because they own a majority of forestland in the region. Moreover, they have diverse reasons for owning land which has extensive implications not only in terms of incentive types or monetary compensation levels they might require for cultivating SRWCs but also policies related to the development of the bioenergy sector in Mississippi, the location of individual bioenergy processing facilities, and feedstock types that will be developed. Thus, forest managers and biomass procurement foresters might need to decide whether to focus their efforts on maximizing the land area allocated to growing SRWCs or considering a mix of SRWCs at lower lease rates per acre and material obtained from thinnings, which might be more amenable to landowners who value environmental amenities.

Apartment Rental Market in Rzeszów and Lublin at the Turn of 2021-2022

Abstract The paper presents the impact of market characteristics on the rental rate of apartments and compares the levels of the offered rental rate in two selected cities: Rzeszów and Lublin. The analyses were conducted before and during Russia's aggression against Ukraine, based on residential rental offers. Data on the offer of residential premises for rent, posted on online portals in the period from November 2021, to April 2022, was used. The analyses showed an increase in rental prices in March 2022, mainly in Rzeszów, and similar correlations of the impact of characteristics on the market rental rate in both cities in relation to the area of the unit, the number of rooms, the location on the floor, the condition of the flat and the age of the building.

ANALYSIS OF INVESTMENT SENSITIVITY IN RUSUNAWA TAMBAK WEDI CITY SURABAYA

Based on the Surabaya City RPJMD for 2021-2026, strategic issues in government affairs in the field of housing and residential areas focus on providing Rusunawa capacity which is not proportional to the number of applicants. To overcome this problem, the Surabaya City Government took the initiative to build Rusunawa Tambak Wedi in the City of Surabaya. This research aims to evaluate the amount of investment receipts and determine the acceptance limits, with the aim of minimizing risks in Rusunawa investment activities. The research results show that the Medium Tariff Structure 1, Lower Tariff Structure 1, and Lower Tariff Structure 2 are considered feasible if analyzed based on the Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR), and Payback Period methods. (PP) but the Medium Tariff Structure 2 and the Upper Tariff Structure were declared unfeasible if analyzed using the same method. Sensitivity analysis shows that each Rusunawa rental rate structure has a different level of sensitivity to changes in variables, such as residential unit rental rates, management fees, and management fee subsidies provided by the Government.

Optimal chonsei to monthly rent conversion choice given borrowing constraints

Chonsei, an exceptional but prevalent housing rental system in the Republic of Korea, functions as private loans between individuals, and its implicit interest rate is called the “chonsei to monthly rent conversion rate”. Although the chonsei to monthly rent conversion rate is much higher than the interest rate of savings accounts or mortgage loans, making chonsei a more expensive channel of financing, chonsei remains a dominant type of rent in Korea. This study provides a novel theoretical model in a continuous-time portfolio selection framework that allows a lessor, given borrowing constraints, to optimally choose between chonsei and monthly rent contracts to show a possible solution to this situation. We investigate the optimal choice between chonsei and the monthly rent of lessors using a rigorous theoretical model and find a closed-form solution to the model. We analyze how credit availability in the banking sector affects the choice problem, showing that the lessor may prefer the chonsei contract over the monthly rent contract, given the borrowing limit from a bank. In addition, we analyze the impact of other major factors, such as the market price of risk, the amount of chonsei deposit, the monthly rental rate, and the income rate, on the lessor’s optimal decision between chonsei and monthly rent.

An analysis of housing affordability in Malaysia: random effect approach

Purpose The purpose of this study paper is to highlight certain related barriers and issues of housing affordability and examine the factors that influence housing affordability in Malaysia. Design/methodology/approach This study used panel data including several variables, namely, household expense, population, home financing, interest rate, inflation rate (IF) and rental rate (RR). The regression models of panel data, namely, the ordinary least square model, the fixed effects model and the random effects model, were evaluated for their suitability. Findings The findings revealed that RR and IF have a positive and significant impact towards housing affordability. The results provide strong evidence that RR as alternative in determining the home affordability as it helped in reducing the cost and the financing duration period of houses while at the same time increasing the level of capability of homeownership. Meanwhile, the level of IF has positive and significant impact towards housing affordability because it will cause a drop or increase in the purchasing power of households, as well as a decline or increase in the capability to own a house. Research limitations/implications The most significant aspects to consider when analysing housing affordability in Malaysia are demand and supply. However, this study focuses on only five variables and only covers Malaysia. As a result, future researchers should analyse the study’s location, such as by region or district, and include additional variables from both the demand and supply sides. Homeownership of affordability requires a broader and more realistic definition in the current context of a more disruptive environment where technology such as fintech, blockchain and the internet of things acts as enablers for not only promoting homeownership but also ensuring homeownership sustainability. As a result, democratising Islamic home financing appears to be a viable option that requires rethinking, and further research is recommended. Practical implications The study proposes an end-to-end solution to promote homeownership levels by considering the level of RR as significant variables among stakeholders such as the house buyers/owners, sellers, investors as well the government agencies in influencing affordability in Malaysia. Originality/value This paper discusses the indicators of housing affordability index over the 21-year period of 2000–2020, covering all states in Malaysia. The comparison of affordability level can be seen through all states and by regions. Besides that, the findings revealed that RR and IF have a positive and significant impact towards housing affordability. RR is considered an essential variable in promoting homeownership in Malaysia and warrants further investigation towards policy implication. This paper also provides contribution on data on RR by states in Malaysia that can be used by policymakers to some extent.

Analisis Penentuan Tarif Sewa Kamar Hotel Dengan Metode Activity-Based Costing (ABC) Pada Hotel Gajah Mada Lumajang

Along with the increase in service companies, especially in the hotel business sector, there is competition. The business strategy that can be carried out by hotel management in winning the competition is to provide the best facilities and services to hotel guests. Therefore, it takes the right calculation in determining room rental rates. The activity-based costing (ABC) method is very effective for determining room rental rates, because it provides an accurate and efficient calculation by calculating the costs incurred as a result of the provision of facilities, so it can help reduce cost deviations. This study aims to analyze the determination of hotel room rental rates using the activity-based costing (ABC) method at Gajah Mada Hotel Lumajang. This type of research is descriptive with a quantitative approach. The results obtained are that the hotel room rental rates carried out by Gajah Mada Lumajang Hotel have a greater value compared to hotel room rental rates using the activity-based costing (ABC) method, namely with a difference in room rental rates of IDR 14,117.00 for room types garden suite room, and IDR 8,096.00 for the executive suite room type. This difference in results is experiencing overcosting.

Evaluation of the Efficiency of the Use of Hopper Cars with Aluminum Alloy Bodies

The use of aluminium and its alloys in the world history of car building began in the 30s of the last century.The paper considers various types of cars made using aluminium alloys produced in different countries, as well as an assessment of the effect of the use of cars with bodies made of aluminium alloys in the Russian Federation. The effect was determined for three parties of the transportation process: car owners, the carrier and the consignor. The paper calculated the effect of using a hopper car made of aluminium alloys model 19-1299 with an axle load of 25 tf in comparison with hopper cars with steel bodies with an axial load of 25 and 23.5 tf. It is shown that for the consignor and the carrier, the use of a car with an aluminium body by reducing the tare weight and increasing the carrying capacity brings a significant economic effect, at the same time, as for the owner of the car, there is a reasonable increase in the price of the car by 25–30 %. The purchase of cars with aluminum bodies is more expensive for the owner, and therefore it is necessary to increase the rental rate to compensate for the costs or take measures for state support.

Office Building Rental Prediction Model Based on Locational Determinants

The importance of locational determinants in determining rental rates in the office market has long been acknowledged and unquestionably become the significant factor for assessing the rental potential of various property types. Nevertheless, the rapid progressing research that discovers the effect of locational determinants on the rental, limited study that was deeply looked into the provision of location to the rental mainly in Malaysia cases. Thus, this study aims to develop a predictive model for office building rentals based on a comprehensive analysis of locational determinants. To achieve the aims of this study, the objectives was outline which are to identify the determinant factors of location and to analyse the significant determinant factors. Through the application of machine learning, this study captured the intricate connections between rentals and different location-related factors. By leveraging advanced algorithms which are decision trees, random forests, support vector machines and gradient boosted trees, the model can effectively handle diverse datasets, encompassing variables such as proximity to central business districts, access to public transport network, neighbourhood and amenities, and traffic condition. Through rigorous data collection and pre-processing, this study constructs a robust dataset comprising historical rental dataset collected in the city area of Kuala Lumpur, Malaysia acquired from Property Services Department (JPPH) were used to train and validate the predictive model via R-squared performance metrics. The results indicate that proximity to Central Business District (CBD) emerges as a significant determinant with the most contribution to the model’s prediction, with offices located in close proximity commanding higher rentals. This study provides valuable insights into the prediction of office building rentals based on locational determinants, offering a practical tool for stakeholders in the real estate industry.

Impact of green building certification on the rent of commercial properties: A review

The world is currently facing two major problems, namely, increasing energy costs and global warming. As a result, it is crucial to take proactive measures to effectively address and mitigate the detrimental impacts arising from elevated energy costs, the pressing issue of global warming, and various types of environmental degradation. As a reaction, international organizations are advocating for the development of eco-friendly, sustainable, or green buildings as a strategy to reduce the harmful effects of the construction sector on the environment. While green development may entail higher costs for developers, it is imperative to evaluate the return on investment from their perspective. As such, this study initially delves into the global landscape of green building certifications and their associated institutions by thoroughly examining relevant literature published between 2003 and 2021. Following that, the study scrutinizes the advancement of research on green building practices across diverse office building sectors and over the course of time. Following that, the study explores green incentives in property markets worldwide, with a particular emphasis on the United States and Europe, as well as other regions. Ultimately, the paper assesses the efficacy of green incentives in driving sustainable building practices in diverse real estate markets. The findings from the review suggest that green certification is associated with higher commercial building rents as opposed to buildings without certifications, with 77% of the research demonstrating a significant positive correlation between green certification and rental rates. Nevertheless, the study recommends that relative rent should be regarded as an endogenous variable in future research, as investment profitability is jointly influenced by both occupancy rate and rental value, underscoring the need for careful consideration in analytical analyses.

ОСОБЕННОСТИ РАЗВИТИЯ РЫНКА НЕДВИЖИМОСТИ САНКТ-ПЕТЕРБУРГА В КРИЗИСНЫЙ ПЕРИОД

The features and prospects of development of the primary real estate market of St. Petersburg during the crisis period have been revealed, the volume of demand for real estate in the primary market of St. Petersburg has been estimated, the price dynamics in the primary and secondary real estate market of St. Petersburg for the period January 2020 – April 2023 has been presented. The main trends, problems and prospects of the retail real estate market have been revealed. The dynamic series of attendance rates in the shopping malls in 2022, the level of occupancy of retail facilities, the dynamics of rental rates for anchor tenants and space in the retail gallery were plotted. The levels of operating costs and profitability indicators for retail space have been revealed. The methods of synthesis, induction (inductive generalization (empirical)), concretization, comparison and analysis of dynamic series have been used in the work. The authors came to the conclusion that the prerequisites listed in the article for the analyzed period (demand decrease, economic crisis, drop of real incomes of population) will contribute to the reversal of growth tendency to the reduction of prices on the primary and secondary real estate market of St. Petersburg. It was noted that the crisis in the market of retail real estate in Saint-Petersburg has its own characteristics and requires from entrepreneurs to make non-standard decisions and be ready for the changes in the market.

The Effect of Campus Existence on Boarding House Rental Prices: A Case Study of Universitas Muhammadiyah Yogyakarta

The establishment of the Universitas Muhammadiyah Yogyakarta (UMY) campus has acted as a catalyst for economic expansion in the local neighborhoods, particularly evident in the real estate sector, characterized by the proliferation of boarding houses. This study endeavors to comprehensively examine the impact of the presence of Universitas Muhammadiyah Yogyakarta on the rental rates of boarding houses. The research's primary objective is to make a valuable contribution to the domain of property economics, utilizing secondary data derived from online platforms specializing in boarding house listings, notably Mamikos. A dataset encompassing 200 entries was gathered from the Mamikos website, encompassing variables such as boarding house rental fees, the proximity of the boarding houses to UMY, room dimensions, available facilities, and the categorization of boarding houses based on gender. The analysis of the dataset employs a multiple regression model, applying the Ordinary Least Square (OLS) technique. The findings derived from this study underscore several significant observations. Notably, the distance between the boarding house and the UMY campus displays a significant and, negative correlation with boarding house prices. This indicates that the rental rates of boarding houses tend to be higher the closer they are situated to the UMY campus. Conversely, factors such as room size and provided facilities exhibit a positive and considerable influence on the boarding house rental rates. Additionally, the study ascertains that gender-based differentiation does not lead to a significant variance in the rental charges between male and female boarding houses. In summary, this research effectively elucidates the intricate relationship between the proximity to UMY, room dimensions, facilities, and the rental pricing of boarding houses, thereby contributing valuable insights to the realm of property economics.

New town development and housing affordability: A case study in Hong Kong

New towns and housing affordability are the hot topics among city planners, urban researchers, policymakers, and economists in recent years. Yet, whether the existing new town development could mitigate the problem of housing affordability for low-income people is understudied. To fill this important knowledge blank and research gap, this study selects Hong Kong to conduct the empirical analysis. Through examining the data from multiple sources such as Census statistics from the Hong Kong government, market-rate housing transaction records, and private housing transactions from the property agents’ website, we found that new town development mitigates the problems of housing affordability in Hong Kong in general but not for low-income tenants in particular. The low-income people in new towns pay more for living in unsubsidized affordable housing/subdivided units as their last shelters. As more new towns will be developed in the upcoming years, the results also found that the announcement of new development areas increases the housing rent rate by 9.4% in the new development areas. We suggest that the priority of the newly built subsidized housing in the new development areas should be allocated to the local/indigenous low-income people; otherwise, the housing affordability of low-income people may repeat the same pattern associated with the past new towns’ development.

Risk-return Performance of Residential Property Investment in Lagos, Nigeria: A Quantitative Survey Analysis From 2001 to 2021

Aim: To evaluate the risk-return performance of residential property investment between 2001 and 2021 in Lagos, Nigeria.
 Study Design: Quantitative Survey research.
 Place and Duration of Study: Eti-osa and Somolu LGA, Lagos State, 2022.
 Methodology: Survey with structured questionnaire collected primary data on non-owner-occupied residential property investments in Somolu and Eti-Osa, Lagos, Nigeria. Estate surveying and valuation firm provided the data. Analysis used descriptive statistics (charts, tables, standard deviation, and coefficient of variation) and trend analysis over 20 years (2001-2021) to assess risk-return performance. This included rental index, rental growth rate, standard deviation, and coefficient of variation.
 Results: In Eti-Osa, duplexes had a high expected return of 54.04% with a risk of 18.58. Bungalows and flats had lower returns of 44.61% and 41.8% with risks of 16.38 and 15.39, respectively. Duplexes performed best with a coefficient of variation of 0.34, followed by bungalows and flats at 0.37 each. In Somolu, self-contained and duplex properties performed best with returns of 19.12% and 19.08% but higher risks of 14.82 and 17.08. Bungalows and tenement buildings had returns of 15.5% and 15.32% with lower risks of 10.43 and 8.25. Self-contained apartments had the lowest return of 13.31% and low risk of 6.57, performing best in risk-return with coefficient of variation of 0.49. Overall, Eti-Osa properties performed better than Somolu.
 Conclusion: The study shows that rental prices experienced an overall upward trend, with flats and bungalows exhibiting higher rental growth rates compared to other property types. Appreciation rates varied across property categories, with duplexes in Eti-Osa and bungalows in Somolu showing higher average annual appreciation rates. Anticipated yield and risk varied among property types, with duplexes having the highest anticipated yield but also the highest level of risk. Therefore, this study recommends that investors prioritize flats and bungalows in Eti-Osa and Somolu, Lagos for higher rental growth and appreciation. Evaluate duplex risks, as they offer greater returns but entail elevated risk.

Land use impacts of the Conservation Reserve Program: An analysis of rejected offers

AbstractThe Conservation Reserve Program is the largest agricultural land retirement program in the United States, with more enrolled acreage entering the program through a competitive auction called the General Signup than any other component. In this study, we assess the land use impacts of the Conservation Reserve Program by observing the land use decisions of parcels following the 2016 General Signup. We estimate land use impacts using a regression discontinuity design based on the Environmental Benefits Index, the program's selection and ranking mechanism. Our estimates largely rely on the auction design of the General Signup, such that we observe the land use decisions of rejected offers. We also use information on the rental rates of these offers to understand what the program pays to retire land in different uses. We estimate that a marginal acre of land enrolled in the Conservation Reserve Program replaces 0.30 acres in cropland, 0.25 acres in mixed forage, 0.32 acres in grassland, 0.12 acres in idle or fallow land, and 0.01 acres in timberland. We also find that enrollments from newly offered fields are more likely to displace cropland and less likely to displace grassland than returning fields. Consequently, we estimate that new enrollments lead to 47% greater reductions in water‐driven erosion and 12% greater reductions in wind‐driven erosion, compared to fields with prior enrollment.

Implementasi Activity Base Costing Dalam Pengendalian Biaya Pada CV. Berlian Kilau Abadi-Breakshoot Billiar

This study aims to describe the determination of the cost of production that has existed so far in the company CV Berlian Kilau Abadi-Breakshoot Billiard. Furthermore, calculating the production costs using the Activity-Based Costing approach. This study uses a qualitative approach with the case method. This study obtained data from the company in the form of secondary data, and primary data in the form of direct interviews with research informants. Research data through the data credibility testing process. Data were analyzed using the approach of Miles and Huberman (1994), which was carried out simultaneously with the process of data collection, data presentation, data reduction, and drawing conclusions or verification. The research results show that the company has never done a detailed calculation of production costs, only they are exploring the amount of costs that are likely to be incurred before determining the selling price. The selling price set for the billiard table rental game / sports service is primarily based on the price prevailing in the Bengkulu City market. The company has not detailed the types of costs incurred and how much they cost in determining the existing rental rates. The bookkeeping and financial management system still uses the traditional system by recording all the receipts and expenses that have occurred, and at the end of the month the total will be calculated to see if it gets a profit or a loss. The calculation of production costs using the Activity-Based Costing (ABC) approach is carried out in order to obtain the total production costs for each available hour. There are 19 cost items and their triggers which are identified as components of production costs. Costs are separated into direct and indirect production costs, then calculated the amount of the cost of production per hour of billiard table rental services. The total production costs generated are still below the selling price, namely IDR 17,638.09 (direct production costs IDR 15,691.88, and indirect costs IDR 1,946.21). Judging by the selling price of IDR 25,000, it can be concluded that the company is still in the profit category.

A Financial Feasibility Study to Determine the Best Funding Structure for a Total Renovation Project of the Karebosi Field in Makassar

The objective of this study is to determine the best debt-equity combination to fund the Public-Private Partnership (PPP) project applying the Build-Operate-Transfer (B-O-T) scheme for the total renovation of Karebosi Field in Makassar City, Indonesia. To assess the feasibility of the project, the financial feasibility study methodology is conducted. The study covers an analysis of both external and internal analysis. The external analysis covers the analysis of macroeconomic factors and microeconomic factors utilizing the PESTEL and Porter’s Five Forces framework. The internal analysis is focused on the resources of the project. The SWOT analysis presents the outcomes of both external and internal factors. In addition, the author presents three funding structure scenarios as potential alternatives to fund the project. The funding scenarios consist of three alternatives: scenario 1 of full equity funding, scenario 2 of hybrid funding with a proportion of 50% debt and 50% equity, lastly, scenario 3 of hybrid funding with a proportion of 70% debt and 30% equity. Along with that, the author also considers the operational occupancy scenarios that include worst-case, base-case, and best-case scenarios. The percentages of each of the three scenarios are 40%, 60%, and 80%. Following that, the financial projections are calculated for each scenario, resulting in investment measurements such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. Finally, a risk analysis is performed to assess the sensitivity of the best funding structure and to identify potential risks. Additionally, the evaluation of risk mitigation is added to enhance the overall effectiveness of the best funding structure. The findings indicate that the project is feasible, and scenario 3 of hybrid funding with the combination of 70% debt and 30% equity is the best funding structure for the project. In addition, the author performs a sensitivity analysis on the best funding scenario, considering ten input variables. Furthermore, the sensitivity analysis indicates that five variables, namely WACC, assumption of operational occupancy per day, interest rate, soccer field rental rate, and the ratio of operating expenses to revenue, significantly impact the net present value (NPV). Strategies to reduce potential risks are effective marketing and operations, managing occupancy rate volatility using backup strategies, developing new revenue streams, and negotiating long-term rate fixes with lenders. Therefore, future research can explore the dynamic nature of the external factors that influence the Internal Rate of Return (IRR), Net Present Value (NPV), Payback Period, and Weighted Average Cost of Capital (WACC). Determining the best funding may require ongoing research to assess the effects of market conditions, interest rate fluctuations, and industry-specific factors. Furthermore, explore how input variables like WACC, operational occupancy per day, interest rate, soccer field rental rate, and operating expense ratio to revenue affect NPV.

INVESTMENT FEASIBILITY ANALYSIS OF COIL WAREHOUSE CONSTRUCTION PROJECT

PT XYZ is one of the logistics and port service companies that plan to build a new warehouse to store coil products, where the existing coil warehouse does not have enough capacity to store increasing production. Before the project is carried out, PT XYZ needs to calculate coil warehouse rental rates and investment feasibility analysis. This study aims to determine the rental rate of the coil warehouse to be used by PT XYZand investment feasibility analysis on financial aspects. The coil warehouse rental rate in this study was calculated using the Cost Based Pricing method with a normal price approach (Cost Plus Pricing) with the results for the coil warehouse rental rate of Rp21.561/ton. The method used to analyze the feasibility of investment in the financial aspect of the project, the construction of PT XYZs coil warehouse, namely Net Present Value (NPV) with a result of Rp2.717.830.633, Internal Rate of Return (IRR) with a result of 13.4% and Payback Period with a result of 13.75 years which all resulted in the conclusion that the project was said to be feasible to run.

전세사기 발생원인 및 법적 방지방안에 관한 연구

In the last 2~3 years, the sale price of real estate has plummeted, and the news about the crime of rental fraud continues day after day. In this situation, the contents of the government’s recent measures about rental scam can be broadly summarized as prevention, support, crackdown, and strengthening of punishment. Among them, preventive measures include reducing the pre-tax rate subject to tax return guarantee from 100% to 90%, and preventing senior mortgage loans after the contract by providing information on each stage of the contract. If the landlord enters into a contract for the sale of the leased object with a third party during the rental(or lease) period, preventive measures such as requiring the tenant to notify the tenant in advance must be written in the standard contract and provided by the Association of Certified Realtors. On the other hand, it seems necessary to reconsider measures such as providing the credit information of the landlord to individuals such as authorized brokers or lowering the rental price rate in connection with the purchase of rental guarantee insurance. In addition, it is necessary to regulate certified brokers and real estate consulting firms that lead real estate transactions in close contact with the general public, and it is necessary to create institutional conditions for the general public to conduct real estate transactions transparently.

Interest rates and Islamic commercial property financing: can there be a possible solution?

PurposeThis study aims to investigate the dynamic interaction between interest rates and commercial property financing offered by Islamic banks in Malaysia.Design/methodology/approachThe authors use the autoregressive distributed lag (ARDL) cointegration methodology to analyse the short- and long-run effect of the interest rates and rental rates on commercial property financing of Islamic banks in Malaysia between 2010: Q1 and 2018: Q2.FindingsThe findings reveal that changes in interest rates affect Islamic commercial property financing. This indicates that Islamic banks still rely on interest rates as a benchmark without fully implementing Islamic rental rates. This corroborates the subsequent finding, where overnight policy rates influence commercial property financing.Research limitations/implicationsDespite the authors’ attempt to provide insights into Islamic commercial property financing, the study is limited to secondary data; further research can use survey information to obtain other details that are not included in this study. Similarly, this study does not cover the operation and financial lease debate in Musharakah Mutanaqisah. Future studies can examine the challenges faced by the financial institution towards implementing rental rates in other emerging and developing countries using a different methodology.Originality/valueThis study is the first to investigate the dynamic changes in overnight policy rates, average lending rates and rental rates on Islamic commercial property financing in Malaysia using ARDL techniques. The authors uncover the research and institutional implications of Islamic commercial property financing rates and provide policy and future research directions coupled with the proposed modified rental rate to be developed.

TRENDS IN THE DEVELOPMENT OF THE URBAN REAL ESTATE MARKET IN UKRAINE

The volatility of external and internal factors affecting the real estate market makes it necessary to study trends and predict the consequences of management decisions to prevent financial losses. The real estate market is a sphere of capital investment in real estate and a system of economic relations arising from real estate transactions. These relations arise when buying and selling real estate, leasing real estate, etc. Depending on the legal framework, external and internal financing conditions, and forms of property ownership, the real estate market is constantly changing and unique to each country, region, and city. To accurately evaluate real estate, it is necessary to monitor in detail all the changes taking place in the market. This article analyzes the factors that influence the formation of supply and demand in the real estate market. Economic factors have the greatest impact, namely: the level and dynamics of population income; differentiation of the population by income level; level of business development and its dynamics; changes in the structure of the business and its profitability; availability of financial resources; the state of alternative and related markets; prices in the real estate market; rental rates; risks of an investment in real estate; construction costs; prices and tariffs for utilities and energy resources. Social factors, such as population dynamics and age structure, the social structure of the population, crime rate and trends in crime, also significantly impact real estate market trends. The interaction of these factors ultimately determines the state and dynamics of supply and demand in the real estate market. At the same time, the direction of their influence may either coincide or differ for supply and demand. This can be better understood by identifying trends in supply and demand and their dependence on these factors. The article examines the history of price dynamics and systematizes the stages of the formation and development of the real estate market in Ukraine. The state of the real estate market during the crisis periods is analyzed and a forecast for the next year is made. Keywords: real estate market, real estate market dynamics, demand, offer, investment potential.