Residential Real Estate Research Articles

Анализ состояния конкуренции на рынке жилищного строительства в контексте ключевых трендов

The presented article reflects a study of the state of the housing construction market in recent years. The article offers a brief analysis of the state of bibliographic study of the issue of the state of the competitive environment in the housing construction and residential real estate market, reflects the systematization and description of five main trends, provides a more detailed analysis of the state of the competitive environment and the structure of the housing commodity market, calculates indicators reflecting the fact of structural dominance in the regions of the Russian Federation. A ranking of the 20 largest developers in terms of “housing under construction” and the regions of their presence in 2023 and a comparative analysis of structural changes in market concentration by federal districts for the period 2021–2023 were built. The level of concentration of housing construction markets according to the indicator “housing under construction” in the context of administrative-territorial districts of the Russian Federation is determined. It is noted that in most regions of Russia there is a high level of competition in the residential real estate construction market, which has a significant impact on the state of the market as a whole and the processes taking place on it. The presence of active competition in 85% of regional housing construction markets indicates that there are no signs of abuse of a dominant position in the vast majority of regions, signs of structural collective dominance are also limited, which allows us to hypothesize that price increases are formed not because of the monopolistic behavior of real estate developers, but due to the influence of other factors, which are subject to more detailed study.

Transaction costs of ineffective legal intervention restricting land ownership in the vicinity of airports: the example of the Polish compensation scheme in the context of environmental regulations

The goal of the paper is to assess the social implications of an ineffective legal intervention, which consists of introducing ownership restrictions concerning residential real estate located in the vicinity of airports. The paper evaluates Polish law in the context of the legislator's environmental aims and compares current regulations in Poland with solutions adopted in English law and American jurisdictions. The social and economic impact of ineffective legal intervention is calculated for the KTW airport case study with the use of information about the structure and value of filed and awarded claims for damages. With the use of this data, in the empirical part of the paper, we evaluate the factual transaction costs of public intervention for that airport, as well as ones which would occur if, instead of the Polish model, the American and the English models of compensation were applied. This allows us to explain the socio-economic consequences of adopting a given solution as well as to assess whether it fulfils desirable objectives. It also provides an opportunity to assess the models in the context of devising legally and economically justified compensation for landowners near airports affected by aircraft noise. The paper narrows the gap in the legal and economic knowledge related to the types and implications of ownership restrictions introduced in the vicinity of airports.

The restless urban landscape of housing financialization: geographies of residential real estate investment trust expansion in Germany and the United States

ABSTRACT The expansion of Residential Real Estate Investment Trusts (R-REITs) represents an important frontier in the financialization of housing and cities. This paper advances the literature on institutional real estate investment and corporate landlordism by analyzing how and where the 15 largest, publicly-listed R-REITS and REIT-like funds in Germany and the US are growing today. First, we introduce the metaphor of the feeding machine to characterize how key actors like the state, private equity, and exchange-traded funds (ETFs) provide R-REITs with the properties, capital, and imperative to grow. Second, we find four geographical expansion strategies at work: (1) investment beyond mainstream asset classes: from multi-family apartments and single-family rentals to student flats, care homes, and mobile home and recreational vehicle sites, (2) the concentration and consolidation of ownership, through mergers and acquisitions and focused investment in select markets, (3) acquisition across national borders, and (4) institution-led new construction. Despite crucial nuances in individual R-REIT strategies and the housing systems of each country, our comparative analysis reveals shared trajectories and rationalities of expansion. We posit that ETFs and the indexes through which they allocate investment increasingly shape the restless urban landscape of R-REIT growth, pumping liquidity into spatially fixed assets.

The role of boarding houses in the urban housing system funds of Moscow at the turn of the XIX–XX centuries

The subject of this study is apartment buildings in Moscow during the turn of the 19th and 20th centuries, and their significance in the context of the urbanization and industrialization of the city. The research aims to investigate the architectural features, functional characteristics, and socio-economic impact of these apartment buildings on the urban landscape. Special attention is paid to the quantitative and qualitative growth of these structures, as well as their contribution to addressing the issue of housing shortages in light of rapid urban population expansion. The focus of the study is on apartment buildings in Moscow during this period. The article examines specific examples of these buildings, their architectural design, construction stages, ownership, and occupancy. Attention is given to analyzing how these buildings were integrated into the city's infrastructure and influenced Moscow's appearance. The research employs diachronic, statistical, and chronological methods. The novelty of this study lies in its exploration of the previously understudied history of apartment houses in Moscow from a financial, economic, and social perspective. Apartment buildings played a significant role in Moscow's urban life. On the one hand, they provided housing for different segments of the population, making housing more accessible and helping to solve the problem of housing shortages. It was common to rent a room or apartment. On the other hand, apartment buildings became not only a social, but also an economic phenomenon. They were attractive for investing capital and contributed to their proliferation. The success of constructing such buildings led to the formation of joint-stock companies that focused on building apartments. These companies invested in real estate projects, expecting to generate significant profits from renting out apartments. The emergence of these companies indicates that the residential real estate market was a lucrative business.

Integrating rational and irrational factors towards explicating investment satisfaction and reinvestment intentions: a study in the context of direct residential real estate

Purpose The purpose of this study is to understand the investment decision-making of real estate investors in housing, highlighting the interplay between rational and irrational factors. In this study, investment satisfaction was a mediator, while reinvestment intention was the dependent variable. Design/methodology/approach A quantitative, cross-sectional and descriptive research design was used, gathering data from a sample of 550 residential real estate investors using a multi-stage stratified sampling technique. The partial least squares structural equation modelling disjoint two-stage approach was used for data analysis. This methodological approach allowed for an in-depth examination of the relationship between rational factors such as location, profitability, financial viability, environmental considerations and legal aspects alongside irrational factors including various biases like overconfidence, availability, anchoring, representative and information cascade. Findings This study strongly supports the adaptive market hypothesis, showing that residential real estate investor behaviour is dynamic, combining rational and irrational elements influenced by evolutionary psychology. This challenges traditional views of investment decision-making. It also establishes that behavioural biases, key to adapting to market changes, are crucial in shaping residential property market efficiency. Essentially, the study uncovers an evolving real estate investment landscape driven by evolutionary behavioural patterns. Research limitations/implications This research redefines rationality in behavioural finance by illustrating psychological biases as adaptive tools within the residential property market, urging a holistic integration of these insights into real estate investment theories. Practical implications The study reshapes property valuation models by blending economic and psychological perspectives, enhancing investor understanding and market efficiency. These interdisciplinary insights offer a blueprint for improved regulatory policies, investor education and targeted real estate marketing, fundamentally transforming the sector’s dynamics. Originality/value Unlike previous studies, the research uniquely integrates human cognitive behaviour theories from psychology and business studies, specifically in the context of residential property investment. This interdisciplinary approach offers a more nuanced understanding of investor behaviour.

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.

Exploring the spatialisation of the performance of residential REITs investment and direct investment in the housing market

ABSTRACT Despite numerous studies about the housing sector, the connection between the performance of residential real estate investment trusts (REITs) investment and direct investment in the housing market is still under-researched. To help fill this gap, we used quarterly data of the Australian Securities Exchange (ASX) residential REITs index and direct housing returns of Australia and its major cities, spanning March 1983 to June 2021, and adopted a suite of econometric methods to document the following findings. First, publicly listed housing (residential REITs) and private housing markets are not separated, but both are closely related in terms of their investment performance. Second, the performance of direct investment in the housing market of Adelaide, Brisbane, Melbourne and Sydney could lead to positive investment performances for residential REITs over time, while no comparable evidence is found for Canberra, Darwin, Hobart and Perth. Third, further analyses revealed a one-way direction of performance, flowing from the housing market of Brisbane, Melbourne and Sydney to residential REITs, while no similar evidence of performance flow was found for Adelaide. Our study has provided new evidence that could contribute to the discussion on the expansion of residential properties in the portfolio of institutional investors.

Commercial real estate and air pollution

AbstractWe analyze the causal effect of air pollution (acute fine particulate matter) exposure on the commercial real estate (CRE) market. We instrument for air pollution using changes in local wind direction to find that an increase in fine particulate matter exposure leads to a contemporaneous decrease in CRE market values and (net) income as well as an increase in capital expenditures. Heterogeneous treatment analysis within a building‐level fixed effects framework uncovers that the negative effect on market values is concentrated in the office sector, consistent with the notion that air pollution‐induced decreases in CRE values are driven by a reduction in CRE assets’ productive capacity. Additionally, we document that the negative impact on (net) income is concentrated in the apartment sector, which is consistent with a broad set of local disamenity mechanisms identified in previous residential real estate literature.

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.

ANALYSIS OF INFORMATION ON THE INTRODUCTION OF “GREEN” TECHNOLOGIES IN THE FIELD OF RESIDENTIAL REAL ESTATE IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT MANAGEMENT OF RUSSIAN COMPANIES

The article analyzes information on the introduction of “green” technologies in the context of managing the sustainable development of Russian companies in the field of residential real estate. It was revealed that the aspects of information support for the use of “green” technologies in practice are insufficiently developed, there is no or insufficient information on these aspects on the official websites of real estate developers and their sales offices, there is not enough relevant information in the media field and expert reviews on this topic.
 There is not enough activity on sales forums Asignificant PR campaign developing one of the criteria of the “green” standard was the placement of eco-containers for collecting tires, clothing and equipment and other items on the territory of residential complexes. The objectives of the campaign were defined as increasing comfort and responsible attitude to the environment in modern residential complexes.
 During the research, the strengths and weaknesses of advertising and PR support for the introduction of “green” technologies in the construction of residential real estate in Moscow and the Moscow region of the Group of Companies “Airplane” were identified.
 Recommendations on the development of information support for the introduction of “green” technologies in construction and residential real estate sales in the context of sustainable development management of Russian companies have been formed.

A lightweight image inpainting model for removing unwanted objects from residential real estate’s indoor scenes

A lightweight image inpainting model for removing unwanted objects from residential real estate’s indoor scenes

Profit evolution for residential construction projects according to project characteristics

The following research paper analyzes the evolution of financial variables considered in residential real estate projects in Quito, Ecuador. The analysis depends on the general characteristics of each project, from 2006 until the present. Specifically, the analysis relates the profitability of a series of projects with their type, total size in square meters, and general costs of construction, among other factors. For this, 344 real estate business plans were studied to obtain general information of the construction, and later categorized according to financial variables established. Usually, the initial planning of construction projects is not fully accomplished, due to such factors as the owner, design, location, or financial reasons, among others. As demonstrated, the misuse of resources has caused delays in the construction process, leading to economic loss. Essentially, the financial planning must provide a detailed explanation of the behavior of the variables affecting the proposed project's viability and financial efficiency. These variables must achieve optimal and positive annual profitability for the project to be successful. The results obtained for general and annual profitability find that general characteristics, such as type and size, affected profitability by increasing chronologically. Additionally, it was found that general profitability was most beneficial for a specific type of building and house, regarding its size, which is an essential financial factor to consider when investing or carrying out the construction of any real estate project.

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.

Models database of information technology for valuation of real estate

The goal of the research is to find and analyze ways to improve the results of real estate valuation based on a comparative approach. The chosen approach suggests the use of an information technology for the valuation of residential real estate, which is built on the basis of a database of models of decision support systems (DSS). The problem solved with the use of the discussed approach is to establish the degree of similarity between the object under consideration and its analogs by determining the value as an integral quality indicator based on the analysis of value-creating factors. This is followed by the construction of a generalized relationship between the value of this indicator and the prices of analogs. According to the logic of the comparative approach, it is assumed that the obtained relationship holds for the evaluated object as well and can be used in the calculation of its value.
 The formation of the database of models was based on the analysis of information technology processes, where details of functional aspects of process implementation, informational and logical connections between them, rights of access to information environment, and the implementation of processes by different types of users (their roles) were considered. The proposed database of models is built as a mathematical and logical basis of information technology that is applied as a computer tool for appraisers and aims to maximize formalization and efficiency improvement of process implementation based on expert evaluation methods. The construction of the database of models is based on methods of value estimation using multiple criteria, with consideration of their significance, analysis of hierarchies, ranking, Delphi, and user access control based on defined roles.

SYSTEM OF COST INDICATORS FOR ANALOGOUS OBJECTS

The military aggression of the Russian Federation in Ukraine has resulted in a significant number of damaged and destroyed buildings and structures. The challenge of determining the extent of material losses and damage, within tight timelines and under the conditions of active combat in the country, becomes more pressing than ever. To restore normal life in areas that were under occupation or in conflict zones, a series of tasks must be undertaken, including the initial assessment of the extent of destruction, conducting surveys of damaged buildings, and subsequently determining the corresponding requirements for the restoration of real estate. The purpose of the work. To demonstrate the feasibility and appropriateness of applying the Handbook System of cost indicators for analogous objects to determine the reproduction cost (replacement) of objects, with the aim of assessing damages and determining the needs for the restoration of real estate. The Handbook System of cost indicators is developed based on actual cost indicators of analogous objects and consolidated cost estimates or consolidated indicators of construction costs (types of work, structural elements, etc.), adjusted to current price levels. This involves analyzing all possible sources containing accumulated cost information from project and estimate documentation, determining necessary corrective coefficients, and developing models to ascertain the cost of all types of real estate, including specialized properties. Methodology. The statistical analysis methodology was employed, specifically using the method of grouping and consolidating indicators to assess the costs of restoring residential real estate in one of the districts of Dnipro city. This involves the application of the developed Handbook System of cost indicators for analogous objects, determining the structure of the real estate object as a construction object in a two-dimensional system of physical/cost indicators. Scientific novelty. A model for determining restoration costs using the Handbook System of cost indicators for analogous objects has been developed and implemented in the Sobornyi district of Dnipro city. Practical significance. The determination of the structure of any real estate object in the system of physical/cost indicators, based on the results of using the Handbook System of cost indicators for analogous objects, addresses a range of crucial economic, managerial, and legal issues. Specifically, it opens the way for the application of rapid screening of investment projects, assessment of actual damages, standardized and analytical damage assessments. This contributes to making effective managerial decisions in the country's recovery process, ensuring the efficient use of resources in society, and can be applied for other purposes in case of open access to this information, following the experience of leading countries worldwide. Results. A Handbook System of cost indicators for analogous objects has been developed and tested to determine the reproduction cost (replacement) of objects, aiming to assess damages and needs for the restoration of real estate. The results obtained from testing the Handbook System provide grounds for practical application, enabling the acquisition of logically comprehensible outcomes. It can be implemented not only for determining the needs for the restoration of real estate and assessing damages but also for various other purposes.

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.

Comparison of Machine Learning Algorithms for Mass Appraisal of Real Estate Data

Abstract In recent years, machine learning algorithms have been used in the mass appraisal of real estate. In this study, 5 machine learning algorithms are used for residential type real estate. Machine learning algorithms used for mass appraisal in this study are Artificial Neural Networks (ANN), Random Forest (RO), Multiple Regression Analysis (MRA), K-Nearest Neighborhood (k-nn), Support Vector Regression (SVR). To test the study, real estate data collected from the central districts of Ankara, were used. The main purpose of this study is to find out which machine learning algorithm gives the best results for the mass appraisal of real estates and to reveal the most important variables that affect the prices of real estate. According to the results obtained for the city of Ankara, it was observed that the best algorithm for mass appraisal is RF in residential-type real estates, followed by the ANN, k-nn, and linear regression algorithms, respectively. According to the results obtained from the residential real estate, it was concluded that heating and distances to places of importance had the greatest effect on the value.

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.

Residential submarkets in traditional central areas: new spaces and property obsolescence in Recife

The central areas of Brazilian cities have acquired an increasing importance in the dynamics of capitalist production of space, either through the construction of new real estate or through the ressemantization of old real estate. In Recife, the intensification of the production of residential real estate in the immediate surroundings of the historic sites listed over the decades of 2000 and 2010 has added, to the stock built up in the central area, real estate with typologies similar to those already practiced in other districts. The present paper shows how the real estate market of new residential properties - corresponding to contemporary consumer desires - and the used real estate market are articulated in order to unveil how the residential real estate submarkets are configured. The behaviors of the bidders and consumers, the means of disclosing the available properties, pricing, the strategies for comparing the available properties and the attributes praised by bidders and valued by consumers are substantially differentiated so that, even located in proximity condition, units can enter into different submarkets with their own operating mechanisms.

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).