Residential Real Estate Market Research Articles

Институциональные факторы развития рынка жилой недвижимости Российской Федерации

The authors formulated the fundamental postulates of the institutional approach to the study of the patterns of development of the real estate market, investigated the main stages of the functioning of the Russian Federation’s residential real estate market, which identified specific trends and analyzed the causes of crisis conditions. For each period of market development under consideration, the spheres of influence of the main institutional participants have been established. As a result, a generalized classification of residential real estate market institutions is proposed based on the experience of foreign traditional and neoclassical economic schools, as well as the works of domestic authors in the field of institutional economics. As a result of the performed research, the authors identified the key institutional factors specifying the formation and state of the modern housing construction market, which are systematized by the source of their impact on individual indicators of the real estate market or the behavior of its participants.

Technology has Agency too! Disentangling Technology's Causal and Structural Agency in a Service System

This study explores how technology attains agency in a service system. By applying a systems view through the lenses of service-dominant logic and actor-network theory (ANT), we clarify and conceptualize resource and agency forms for a technology as it connects with other actors in a network as part of the value cocreation process. We conduct a qualitative study to explore a technology's role (i.e., VR-tours) in the residential real estate market. We find that VR-tour technology gains causal agency through others’ connection to and reliance on the technology. As value is determined, there is potential for structural agency, where it cocreates and transforms valuations, influencing actors to renegotiate their roles and practices and enabling value destabilization in the marketing system. Theoretical and macromarketing implications are discussed.

Social Assessment of the Effect of Construction of the Southern Warsaw Ring Road on the Quality of Life and Residential Real Estate Market in the Wilanów District

Abstract Every road investment has both positive and negative consequences in spatial, economic, environmental, and social terms. The objective of the article is the social assessment of the effect of construction of the Southern Warsaw Ring Road (WRR) on: (i) the quality of life of the local community, and (ii) the residential real estate market. The analyses employed the method of quantitative analysis with the application of the survey technique. The questionnaire was made publicly available to residents of the Wilanów district in Warsaw. Results obtained in the scope of the study render decision making models of respondents depending on the distance of the place of residence from the WRR. The results reveal that responses given by the group of respondents living nearer the ring road are the most variable, particularly in the context of assessing the effect of the investment on the quality of life, including nuisance related to the express road and plans to change the place of residence. The same group of respondents provided the highest share of responses supporting the claim that housing prices increased due to the construction of the ring road.

Assessment of the Impact of Migration Processes on Pricing in the Residential Real Estate Market in the Russian Federation

The dynamics of the housing construction industry can be seen as an indicator of the level of social and economic development of the country. The attractiveness of residential real estate is largely determined by price availability for the population. However, it is important to consider demographic factors. Therefore, the study assessed the effects of migration, along with parameters such as salary dynamics, mortgage lending and construction volumes of the Russian Federation. The purpose of the study is to justify the importance of migration dynamics to change the value of residential real estate. The subject of study is the existence of dependence of migration processes and pricing dynamics taking into account additional parameters of the country’s economy. The object of the study is pricing in the residential real estate market in Russia. Research methods are vector autoregression models (standard and Bayesian ones). Monthly data of official statistics for Russia for 2011–2021 as well as scientific articles and published studies of employees of the Bank of Russia were used as the information base. The initial hypothesis of the study is that the factor of migration significantly affects the final indicator of the cost of housing. The analysis made it possible to determine the importance of factors that have a sustainable long-term impact on the dynamics of prices in the residential real estate market.

Does the market value energy efficiency within EPC-labels? An analysis of the residential real estate market in Flanders

Purpose The current literature has not investigated the perceived value of energy efficiency by households, regardless of financial benefits. Furthermore, there is a severe lack of research that investigates the effectiveness of the current format of EPC-labels. Therefore, the purpose of this paper is twofold: to study how households value energy efficiency in the housing market, regardless of price effects. Design/methodology/approach This study uses multiple hedonic regression models to analyse 706,778 Flemish properties for sale or rent between 2019 and 2023. The data is provided by Immoweb – the largest online real estate platform in Belgium. Given that the selling market is driven by different mechanisms than the rental market, the data set was divided in sold (522,164 listings) and rented properties (184,614 listings). Findings The ambiguous results of the A-label in the selling market indicate that the “class evaluation effect” found in related markets which use labels (e.g. household appliances) is also present in the housing market. However, the results of the other (lower) labels clearly show that owners do value energy improvements within labels, and this effect becomes stronger as the EPC-label becomes better. The rental market shows the opposite results. Energy improvements are only valued if they translate into a financial benefit. Taking these findings into account, the second part of this research shows that rescaling the EPC-label creates an incentive for improvements within labels. Originality/value This paper provides novel insights by studying the perceived value of energy efficiency in the absence of financial benefits and critically studying the effectiveness of the EPC-labels in their current shape. By investigating both the sales and rental market, the authors are able to make a comparison which creates valuable insights for academia, governments and real estate professionals.

Institutional-territorial arrangements and urban regimes: the residential verticalization process in Imperatriz (MA)

The project characterizes the institutional arrangements and urban regimes, verifying these factors in the urban space of Imperatriz (MA), by the role played in the framework of governance, facing the spatial dynamics in the institutional, political, economic and social articulations.  Thus, it makes approaches focused on the urban growth of the process of verticalization of housing in the context of the residential real estate market of the second largest city of the state of Maranhão. Covering the study of public-private relations in the construction of urban space in the occasion of the coalitions in the middle city, thus seeking to understand the major urban projects, analyzing the forms of power and influence that present a certain role exercised in the urban-regional development. Therefore, using the case study methodology, this research aims to understand the Institutional Arrangements and Urban Regimes from the perspective of the governance of the city of Imperatriz (MA), focusing the process of verticalization of housing from the real estate market, verifying the dynamics of institutional coalitions from urban planning and management. The research has its importance in the development of research with an emphasis on urban geography, in the perspective of the understanding of institutional arrangements, urban regimes and institutional coalitions configurations in the local-regional scenario, which configure and produce the urban space of the city of Imperatriz (MA). Therefore, this research will demonstrate strategic decision situations in the urban dynamics of housing, services and the logic of the housing real estate market, verifying the process of verticalization in the city of Imperatriz (MA).

Strategic aspects of OTSW analysis of the residential real estate market in Moscow during the contingency period

Subject. The article addresses the OTSW analysis of the residential real estate market of Moscow during the contingency period caused by cyclical growth of housing prices, speculative expectations, and an increase in the debt burden of the population. Objectives. The aim is to identify strategic opportunities that form the potential development of all regional economic actors in the housing market. For each strategic opportunity of the actors, the paper aims to identify threats formed by the contingency period, reveal strengths and weaknesses that would help realize opportunities and minimize the effect of existing and potential threats to the development of the housing market. Methods. The analysis rests on the methodology of strategizing by academician V.L. Kvint. Results. Based on the strategic analysis of the residential real estate market that confirms the presence of characteristics of the contingency period in the Moscow housing market, I formulated strategic opportunities of involved actors that reduce the negative impact of emerging threats of the phenomenon under consideration. The findings can be used by government agencies to identify and implement strategic opportunities of actors of the regional real estate market, should the contingency period occur. Conclusions. The study demonstrated that despite the potentially significant impact of emergence of characteristics of the contingency period in the Moscow housing market on strategic stability of the considered element of the regional socio-economic system, the phenomenon’s negative impact can be minimized by increasing the efficiency of the strategic management system and optimizing the use of limited resources.

Financial modeling and forecasting of consumer demand in the primary residential real estate market

Subject. This article deals with the issues of financial modeling and forecasting of consumer demand in the primary residential real estate market. Objectives. The article aims to form a financial model for forecasting consumer demand in the primary residential real estate market in the context of the regions of the Russian Federation. Methods. For the study, I used an integrated approach to financial modeling of consumer demand, based on retrospective, systems, functional and structural, and correlation and regression analyses. Results. Based on the analysis of macroeconomic factors influencing demand indicators in the primary residential real estate market in Moscow, the Moscow Oblast, St. Petersburg and the Leningrad Oblast, the article presents a financial model for forecasting the number and volume of concluded transactions (equity participation agreements) using a correlation and regression model. Relevance. The formed financial model helps assess the levels of sensitivity of the forecast to certain macroeconomic factors in the primary residential real estate market in the context of the regions of the Russian Federation. It can be used in factor analysis of the changes in individual industry indicators, and can also be used in regulatory, investment, construction, and banking activities.

The price of clean air – quantifying air pollution exposure in real estate decisions

PurposeThe purpose of this paper is to explore the significance impact of air quality as a contributing factor on residential property rents by applying geo-informatics to economic issues. Since air pollution poses a severe health threat, city residents should have a right to know about the (invisible) hazards they are exposed to.Design/methodology/approachWithin spatial-temporal modeling of air pollutants in Berlin, Germany, three interpolation techniques are tested. The most suitable one is selected to create seasonal maps for 2018 and 2021 with pollution concentrations for particulate matter values and nitrogen dioxide for each 1,000 m2 cell within the administrative boundaries. Based on the evaluated pollution particulate matter values, which are used as additional variables for semi-parametric regressions the impact of the air quality on rents is estimated.FindingsThe findings reveal a compelling association between air quality and the economic aspect of the residential real estate market, with noteworthy implications for both tenants and property investors. The relationship between air pollution variables and rents is statistically significant. However, there is only a “willingness-to- pay” for low particulate matter values, but not for nitrogen dioxide concentrations. With good air quality, residents in Berlin are willing to pay a higher rent (3%).Practical implicationsThese results suggest that a “marginal willingness-to-pay” occurs in a German city. The research underscores the multifaceted impact of air quality on the residential rental market in Berlin. The evidence supports the notion that a cleaner environment not only benefits human health and the planet but also contributes significantly to the economic bottom line of property investors.Originality/valueThe paper has a unique data engineering approach. It collects spatiotemporal data from network of state-certified measuring sites to create an index of air pollution. This spatial information is merged with residential listings. Afterward non-linear regression models are estimated.

Assessing the effect of housing attributes and green certification on Malaysian house price

Purpose Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate. Evidence from the literature has pointed out that incorporating green features into residential buildings can reduce operational costs and increase the building’s value. Although green real estate is considered the future trend of choice, it is still being determined whether prospective buyers are willing to accept the extra cost of green residential investment. Therefore, this study aims to investigate the effect of housing attributes and green certification on residential real estate prices. Design/methodology/approach The impact of the housing attribute and green certification in the residential sectors was assessed using a transaction data set comprising approximately 861 residential units sold in Selangor, Malaysia, between 2014 and 2022. Linear and quantile regression were used in this study by using SPSS software for a robust result. Findings The findings indicate that the market price of residential properties in Malaysia is influenced by housing attributes, transaction types and Green Building Index certification. The empirical evidence from this study suggests that green certification significantly affects the sales price of residential properties in Malaysia. The findings of this research will help investors identify measurable factors that affect the transaction prices of green-certified residential real estate. These identifications will facilitate the development of strategic plans aimed at achieving sustainable rates of return in the sustainable residential real estate market. Practical implications Specifically, this research will contribute to achieving area 4 of the 11th Malaysia Plan, which pertains to pursuing green growth for sustainability and resilience. This will be achieved by enhancing awareness among investors and homebuyers regarding the importance of green residential buildings in contributing to the environment, the economy and society. Originality/value The regression model for housing attributes and green certification on house price developed in this study could offer valuable benefits to support and advance Malaysia in realising its medium and long-term goals for green technology.

Factors for sustainable development of urban areas

In modern conditions, such qualities of commercial real estate objects as energy efficiency, accessibility, safety and environmental friendliness are becoming important. Preliminary analysis has shown that the focus on such factors in the creation and redevelopment of commercial real estate intensifies the process of development of urban areas adjacent to this object. The objectives of the study are to analyze the influence of factors of economy, environmental friendliness and accessibility of commercial real estate on the standard of living of the population based on the construction of regression models for the secondary residential real estate market. The following research methods were used in the work: analysis and synthesis, correlation and regression analysis. The result of the work was an assessment of the impact of the qualitative characteristics of a commercial real estate object on the standard of living of the population of the surrounding urban areas and the dynamics of their sustainable development.

Triskaidekaphobia: The Role of the Dreaded 13th Floor in Shaping Investment Preferences in the Indian Residential Real Estate Market

This study investigates the influence of triskaidekaphobia, the fear of the number 13, on investment preferences in the Indian residential real estate market, specifically examining attitudes towards properties on the 13th floor in high-rise buildings. Originating in Western cultures, triskaidekaphobia has transcended cultural boundaries, influencing the Indian market, which is traditionally shaped by a blend of cultural, religious, and socio-economic factors, including beliefs like Vastu Shastra. Using a quantitative research methodology, the study surveyed 500 participants from various demographic backgrounds across India. The findings reveal a significant awareness of triskaidekaphobia among the respondents, with a majority strongly believing in this superstition. This belief translates into a considerable reluctance to invest in properties on the 13th floor, with many respondents and potential developers expressing a preference to exclude or rename this floor. Statistical analyses, including correlation and regression, indicate a negative relationship between belief in triskaidekaphobia and willingness to invest in the 13th floor. These findings suggest that triskaidekaphobia significantly influences real estate investment decisions in India, reflecting the deep-rooted impact of cultural beliefs on economic behaviors. The study contributes to the understanding of cultural influences in the real estate market and offers insights for real estate developers, urban planners, and policymakers. It highlights the importance of cultural sensitivity in business strategies and the need to consider local beliefs and superstitions in market analyses. The research suggests that addressing the irrational basis of triskaidekaphobia through investor education could open new market opportunities and promote more rational investment choices.

Impact of the 2022 Energy Crisis on the Importance of Energy Performance Certificates for the Real Estate Market

This study relies on a unique database covering different segments of the residential real estate market to investigate whether the value of energy performance certificates was affected by the energy crisis in 2022. Based on the relevant literature, the study uses the linear regression estimation method, in which the effect of interaction is examined using the difference-in-difference method. The study shows that energy performance certificates have a significant impact on the estimated market value of properties, both by individual category and in groups. While in 2022 Q2, before the residential energy price increase, an energy-inefficient property cost 12 per cent less on average compared to a property with an average energy rating, controlling for other factors, that difference increased to 20 per cent after the outbreak of the energy crisis. It may therefore be worthwhile for Hungary to consider taking measures to improve the energy efficiency of buildings as soon as possible.

Trends in Demand Factors in the Residential Real Estate Market

The residential real estate market has political, economic, socio-demographic, environmental and technological significance for Russia. The problem of maintaining and developing this market, including by maintaining demand, is constantly in the focus of attention of the state and scientists. Demand in the residential real estate market has a complex structure and is influenced by many non-random and random interacting factors. To ensure scientifically based demand management at all levels, including at the level of developers, it is necessary to systematically study demand and trends in the factors influencing it, which determines the relevance of the topic. The article examines some approaches to defining the concept of “demand” in the residential real estate market, presents a refined version of the definition, considers approaches to identifying demand factors, and shows a variant of a systematic approach to their grouping, allowing to establish the mutual influence of factors. A number of important trends in demand factors that have developed recently, including for the current year, are considered. The growing importance of factors influencing demand at the level of developer organizations in the local market is shown.

Access-based land value appreciation for assessing project benefits

The traditional mobility-oriented travel-time saving benefit assessment method has been repeatedly questioned for numerous intrinsic flaws, motivating the search for alternative benefit assessment approaches. Although a wealth of literature confirms the capitalization effect of access benefits induced by transport improvements to land or real estate value, the access-based land value uplift method hasn’t yet been widely recognized and employed as an official tool assisting transport decision-making. The present paper collects 136 empirical studies and aims to disentangle the obstacles hindering the promotion of the access-based assessment method by systematically reviewing methodological design, the access metrics used, and the target real estate sub-markets or land use types upon which access benefits are quantified. First, it was found that almost half of the sampled studies just investigated the general effects of transport operation on real estate prices without incorporating sufficient temporal and locational considerations, thereby failing to isolate project-specific incremental impacts. Second, while the hedonic pricing model remains the most popular model, a trend towards embracing more advanced modelling techniques such as spatial lag, spatial error, and Difference-in-Differences (DID) models to control for bias caused by spatial dependence has been observed. Third, Euclidean distance and distance buffer rings are the most widely used operational measures of access. Primal access measures covering the number of opportunities available at a destination and travel impedance are recommended. Last, over 86% of sampled empirical studies target the residential real estate market. The lack of non-residential land uses in the literature presents a significant research gap that should be addressed.

The Popularity of Single-Family Housing in Real Estate Development Activity in the Light of the Pandemic – the Case Study of Łódź

Theoretical background: The functioning of the entire housing market and the sale of developer dwellings depends on many factors. They are, e.g. economic and financial, institutional, environmental, cultural, and religious. Due to the complexity of the real estate market and the variety of factors that influence its functioning, the real estate market is characterized by high variability. Some external factors, especially those difficult to predict, may cause rapid changes in the size of this market. Epidemics can be such a factor. Recently, the COVID-19 pandemic has significantly impacted the functioning of many housing markets. Since we spent whole days at home with whole families, it soon turned out that the previous places of residence needed to be bigger, functional, and properly located. Therefore, in many places worldwide, the demand for single-family houses has increased, contributing to the growing sale of such developer projects. The pandemic, however, has passed, but its effects, along with the consequences of the war in Ukraine, also affect the standard of living of the population and real estate development activity, although it seems to be in a different way. Purpose of the article: In connection with the above, two research objectives have been set in this article: to determine the impact of the pandemic on real estate development activity in the Polish housing market and to analyze, on the example of Łódź, whether the pandemic contributed to changes in developers’ offers and level of sale, especially in the context of single-family investments. Research methods: In order to achieve the set goals, the desk research method was used. First, based on statistical data of the Local Data Bank situation on the primary residential real estate market was analyzed (in Łodź). Then, the number of investments implemented in Łódź, broken down into multi-family and single-family housing, was examined (based on data collected by the author from real estate portals and websites of individual developers). Concerning single-family housing, investment commencement, and completion dates were identified and finally, based on the starting dates, single-family investments were divided according to the level of sale. Main findings: The outbreak of the COVID-19 pandemic has “turned on its head” housing markets in many parts of the world. Overnight, entire households switched to remote work or learning, which was difficult to reconcile, especially in small dwellings. Difficulties in functioning partly prompted and partly forced to look for other, more suitable places to live. Because of that, developer projects concerning single-family houses sold very well during the pandemic. However, it seems that the increase in popularity (sale) of single-family investments offered by developers was temporary. The increase in interest rates resulted in a decrease in demand for large dwellings, which few people can afford anymore, and they are not an attractive investment for investors. So, developers have frozen capital, which, unfortunately, with the loans taken out, may, in the long run, lead to the risk of debt growth and bankruptcy of smaller enterprises.

The presence of polluting sites in urban contexts: an analysis of the effects on the dynamics of the residential real estate market

IntroductionThe industrial activity constitutes one of the most driving sectors of a nation, as it is often considered at the center of public debate as the fulcrum of development policies. However, considering the climate impacts generated, many industries have necessarily changed, relocated, and/or interrupted their production. Due to the connection of industrial sites with the socio-economic, environmental, and health systems of cities, the real estate market dynamics can be differently affected by the presence of polluting industrial sites. With reference to the Italian context, the goal of the research is to, firstly, verify whether there is a functional relationship between the presence of polluting industrial sites and the residential real estate market dynamics, for then determining its type and the extent of purchase price affection.MethodThe proposed logical-evaluative model is based on the application of an econometric technique for investigating the significance of the industrial sites on the residential real estate dynamics through a set of technological, locational, and health variables.ResultsThe obtained results show that the total surface area of the polluting sites, the activity level and the industrial plant opening date are among the most relevant variables, instead the accessibility to the industrial site does not influence the real estate market dynamics.Discussion and practical implicationsThe main practical implication of the present research consists of the possibility to provide a support for the activation of strategies aimed at adopting sustainable development models in the industrial sector.

Рынок жилой недвижимости муниципального образования: тенденции развития и ориентиры совершенствования

The article is devoted to the development and improvement of the municipal residential real estate market. The residential real estate market of the largest city – the municipal formation “Ekaterinburg” – was chosen as the object of research. Dynamic analysis of statistical data on the volume of housing stock, the share of slum dwell-ing and dilapidated housing, the area of commissioned housing, price, supply and demand of the residential real estate market of the municipal formation “Ekaterinburg city” was carried out. The market condition is de-fined as “overheating”. In order to bring the market into a state of equilibrium, the author’s block diagram for the development of the residential real estate market has been proposed, which makes it possible to develop an effective mechanism for its regulation in various municipalities, taking into account their characteristics. Guide-lines for improving (methods of regulation) the development of the residential real estate market of the munici-pal formation “Ekaterinburg City” are proposed, which can be implemented in other types of municipal for-mations.

포스트 코로나 시대 부동산시장의 전망과 과제

This article aims to explore the impact of COVID-19 on the real estate market and the changes necessary to navigate the post-pandemic world. The COVID-19 pandemic has significantly impacted the real estate market, causing changes in consumer preferences, behaviors, and economic factors that have affected various sectors, including residential, commercial, and retail properties. As a result, the industry has had to adapt to a new reality, with challenges and opportunities arising in response to the pandemic's effects. The residential real estate market has seen a shift towards suburban and rural areas, with homebuyers prioritizing space, privacy, and features that accommodate remote work and virtual schooling. Meanwhile, commercial and retail properties have faced challenges as businesses adapt to remote work and changes in consumer behavior. This paper supports that as the world transitions into a post-pandemic era, the real estate industry must continue to evolve to meet the changing needs of consumers and businesses alike.

AN EXPLORATORY STUDY ON CONSUMER PREFERENCES AND PRIORITIES IN THE REAL ESTATE MARKET OF AHMEDABAD DISTRICT

The Ahmedabad real estate market is fast increasing, and people's purchasing decisions are always shifting, based on criteria such as location, income level, pricing, and facilities. Based on a sample size of 261 respondents collected via a Google form, the purpose of this study is to better understand the shifting trends and preferences in Ahmedabad's residential real estate market. According to the survey, location is the most important factor for Ahmedabad residents when looking for new home properties, emphasising the importance of accessibility and ease. This research can help real estate developers, investors, and policymakers promote the development of affordable housing options and long-term growth in Ahmedabad's real estate sector.