Real Estate Values Research Articles

Оценка перспектив развития мировых финансовых центров Латинской Америки

The paper assesses the prospects for the development of financial centers in Latin America, a region poorly studied in the global financial field due to the peripheral geographical position and poor integration into world economic relations. The six cities studied - Sao Paulo, Mexico City, Panama, Santiago, Montevideo and Buenos Aires - are analyzed through the prism of the author’s methodology, which includes the most important socio-economic and financial indicators of cities, as well as qualitative spatial and geographical characteristics. It should be noted that the use of indicators such as the value of real estate and the number of people with very large private capital, as well as the introduced significance factors, introduces a certain novelty to represent the dependence of the development of the financial sector on spatial aspects and domestic political stability. Based on the SWOT analysis and expert scoring, strengths and weaknesses are formed, as well as opportunities and threats for each of the agglomerations presented in the study. The study showed that in the region under consideration, Santiago, as well as São Paulo and Panama, which are qualitatively different potential financial centers of an international level, have the greatest potential.

Standardization of valuation activities in the field of property

The present research paper demonstrates the relevance of standardization of valuation activities in the assessment of the market and other values of real estate. It characterizes the changes in the federal valuation standards that took place in the Russian Federation in 2022. It indicates the remaining elements of ambiguity in the federal valuation standards, which do not allow to ensure the rights of consumers of valuation services, to increase the objectivity of the performed calculations and conclusions of the market value of the object, which most adequately reflects the current situation on the market. The possibility of additional use of International Financial Reporting Standards and International Auditing Standards for clarification of the provisions contained in the federal standards of assessment. There are pointed out the necessity of developing the Methodological recommendations for the appraisal of different kinds of values named in the federal law on the appraisal activities and in the federal appraisal standards. A provision is formulated that the term cost should be used in two meanings: as an economic category and as a valuation index Interpretation of the concept of cost as an economic category is given. A proposal to increase the number of methods included in the cost approach has been made. The new method of the cost approach, the method of discounting the estimated cost with the help of which market cost of real estate can be estimated has been offered. The main conclusions and proposals are formulated.

Machine learning methods for prediction real estate sales prices in Turkey

Owning a house is one of the most important decisions that low and middle income people make in their lives. The real estate market is a significant factor of the national economy as much as it is important for individuals. Therefore, predicting real estate values or real estate valuation is beneficial and necessary not only for buyers, but also for real estate agents, economists and policy makers. This issue represents an active area of research, as individuals, companies and governments hold considerable assets in real estate. In this context, the aim of the study is to predict real estate prices with Machine Learning methods using the real estate sales data set in June and July 2021 belonging to the province of Ankara. In particular, it is to perform a comprehensive comparison on Machine Learning regression types methods that give successful prediction results in various but similar tasks, which are not included in the real estate literature. Real estate data obtained over the Internet was first included in a detailed data preprocessing process, and then Linear, Lasso and Ridge Regression, XGBoost and Artificial Neural Networks (ANN) methods were used on this dataset. According to empirical findings, XGBoost and ANNs appear as very important alternatives in predicting real estate sales prices.

The remote work revolution: Impact on real estate values and the urban environment: 2023 AREUEA Presidential Address

AbstractThe covid‐19 pandemic induced a major shift in the prevalence of remote and hybrid work arrangements. This review article studies the effects of this remote work revolution for residential and commercial real estate values and for the future of cities. It also discusses consequences for productivity, innovation, local public finance, and the climate. The last part of the article discusses policy interventions.

ОСОБЛИВОСТІ ОБЛІКУ ТА АНАЛІЗУ ДЕРЖАВНОГО НЕРУХОМОГО МАЙНА ЗАКЛАДІВ ВИЩОЇ ОСВІТИ В УМОВАХ ВОЄННОГО СТАНУ В УКРАЇНІ

The purpose of this article is to determine the state of material and technical support of the higher education institutions (HEIs) managed by the Ministry of Education and Science of Ukraine in the context of the armed aggression of the russian federation in Ukraine. The information base for the analytical research was based on the legal acts regulating the accounting of property under martial law, instructions, methodological recommendations, information from the Automated System "Legal Entities", and open data from the Unified State Electronic Database on Education. In the course of the study, the authors identified the subjects of education and science involved in the formation of the Unified Register of State Property administered by the Ministry of Education and Science of Ukraine; systematized and built a scheme of information flows between subjects; improved and optimized the procedure for users of the HEIs to generate quarterly reports; outlined the risks arising from the military aggression of the russian federation against Ukraine and affecting the process of accounting for state property and its integrity, accuracy, and completeness of information in the database. The calculated indicators make it possible to estimate by region the number of academic buildings and dormitories, their total area and the residual value of state real estate remaining in the temporarily occupied territories. The HEIs that have provided shelter to temporarily displaced institutions from the occupied territories and areas of hostilities are also identified. The article presents information on the number of higher education students who studied at temporarily displaced institutions at the cost of the budgetary funds and under contract as of October 1, 2021, and 2022, by region. The subject of further research should be the development of methodological principles for monitoring and verification of the main indicators of the Automated System "Legal entities"; improvement of data collection and processing technology; creation of a reliable system for notifying responsible persons about detected errors in reports and their correction in the information base as soon as possible; ensuring the sustainability of the information system under martial law in Ukraine.

Urban architectural heritage, not Real Estate

Vietnam is one of the fastest urbanizing countries in East Asia. According to September 2022 data, the national urbanization rate has reached about 41.5%, with 888 urban areas [1]. Along with that, real estate prices skyrocketed. As of 2020, the average housing price in the place of the lowest increase is also 3 times higher than in 2011 [2]. Rapid urbanization and rising property prices are two of the many factors that contribute to the difficulty of preserving urban architectural heritage. Owners when faced with the choice of preserving their heritage or “converting the estate” into real estate for sale often lean towards the latter. This theoretical paper aims to test the hypothesis about the first option - conservation of heritage whether there are long-term benefits for the owners as well as the community and society. The study is based on the analysis of changes in the value of urban architectural heritage and real estate over time. Combined with lessons learned on how to deal with heritage from cities around the world, the study raises the view that Urban Architectural Heritage is a form of long-term net-earning asset, not quick-profit Real Estate. The study also emphasizes the factors that create urban identity such as long-standing traditions and differences in urban architecture, which play a key role in helping to reverse the trend of globalization, which is a hot issue of many present urban.

ANALYSIS OF THE INTERACTION OF REAL ESTATE AND FINANCIAL MARKETS OF THE REPUBLIC OF ARMENIA OVER THE PAST FIVE YEARS

The real estate market is influenced by the development of the real and financial sectors, as supply and demand in this market depend on the state of the economy and the financial system of the country. The vulnerability of financial stability from fluctuations in real estate prices is mainly considered from the point of view of lending to the construction industry and loans secured by real estate, the materialization of risks of changes in the value of collateral. Sharp fluctuations in supply/demand for real estate, and consequently prices, may adversely affect the security and quality of bank loans, creating risks in terms of financial stability. The real estate market is an extremely important economic player. Real estate, in addition to meeting one of the most important needs of society, is one of the main "reserves" of wealth in the economy. Thus, in developing countries, the market value of shared real estate is usually many times higher than the capitalization of financial markets and the volume of investments coming into the country. This is a unique source of economic "energy". The evaluation and analysis of real estate in Armenia, the use of weak analysis methodology, are considered to be the causes of problems in the real estate market with incorrect versions and procedures, the lack of high-quality data on local markets, unreasonable market research and investment decisions based on them.

МЕТОДОЛОГИЯ ОПРЕДЕЛЕНИЯ СТОИМОСТИ ОБЪЕКТОВ НЕДВИЖИМОСТИ, ПРИНОСЯЩЕЙ ДОХОД

This article discusses various methodological approaches to the valuation of real estate, since only a simultaneous assessment using different approaches makes it possible to determine the real value of the property

Cost modeling of the urbanized territories living environment

In recent years, the main vector of scientific research in the field of regional economics has been the development of large localized economic systems. It was proposed to use the term “urbanized territory” as one of the generalizing terms for describing socio-economic systems. The analysis of various interpretations of the concept of “urbanized territory” allowed us to identify and form a limited list of their inherent characteristics and propose an author’s approach to their definition. A general formalized cost model for the development of urbanized territories is proposed, which includes basic infrastructure elements, as well as improvement coefficients for each block. Taking into account the projected investments, the structure of financing measures for the formation of the cost part within the framework of cost modeling, as well as cost distribution options among the main subjects of the formation of an urbanized territory are proposed. Due to the fact that urbanized territories have different levels of urban planning value, the authors in the article propose a marginality coefficient of the territory, which characterizes the change in the market value of real estate in a specific location of the urbanized territory, depending on the formed parameters of the living environment.

Selected sources of property information fundamental to property investment

Purpose: The aim of the publication was to present selected sources of information on real estate. Selected planning documents were presented, which are not only necessary when planning new developments in communes, but also help to estimate the value of real estate. Design/methodology/approach: An analysis of the legislation governing the meaning and use of planning documents was carried out. A literature analysis on the subject was also carried out. Findings: The range of data used for the real estate market should include the use of multiple sources of information, both mandatory and optional. Deficiencies in the use of real estate information, or the acquisition of poor quality information, may lead to inappropriate investment decisions by real estate market participants. Therefore, basic sources of information on real estate should be taken into account when making any decisions concerning the broadly understood management of real estate; in the case of investments, planning studies such as the local spatial development plan or the study of the conditions and directions of spatial development of a municipality should be taken into account in particular. Research limitations/implications: Planning documents are extremely important when planning new developments. These documents are not only an excellent source of information on existing land or built-up land, but also help to plan the development of vacant land on the urban fringe, among other things. Practical implications: The analysis of the planning documentation presented helps to understand the relevance of local spatial plans and development studies of municipalities for planned construction projects or land use change. Originality/value: To date, there has been very little analysis of planning documents as an important source of information in property management. Keywords: planning documents, real estate market, real estate information. Category of the paper: Review article.

Study of Redevelopment Procedure of Old and Dilapidated Buildings as Per Section 79-A of Maharashtra Cooperative Societies Act ,1960 and its Comparison with section 41 – A of Gujarat Ownership Flats (GOF) (Amendment) Act 2018

In various urban agglomerations throughout India and especially in Mumbai, there is a serious problem with old and dilapidated buildings in the city core. These buildings, mostly small in land and built-up area, are single isolated buildings which are in dilapidated state and are more than 30 years old. Yet the tenants/owners are living in them. These buildings form a major part of Thane, suburban Mumbai and Mumbai respectively. If these buildings are redeveloped, it will lead to better housing for tenants, increase the facade of buildings, bring in more open spaces and amenities, increase the value of real estate, and so on. Redevelopment is basically demolishing the old building and erecting a new, more structurally sound building on the same site with the same or more built-up area. The redevelopment process itself is ridden with various barriers and difficulties and is in no way a cakewalk for any of the stakeholder. One of the key problems is the implementation of 79 - A Process which is applicable to whole of Maharashtra is not done properly. As the redevelopment process done in Maharashtra is as per Section 79 - A of the MCS Act, which is compulsory to be followed, its study is important to make the process of redevelopment more user-friendly by proposing some changes. The research will help to identify general technical shortcomings in the 79 - A process of redevelopment of old buildings as per the Maharashtra Co-operative Societies Act 1960, respectively. The main aim of the study in this paper is to study in depth the existing Section 79 - A process of the Maharashtra Cooperative Societies Act, and compare it with Section 41- A of the Gujarat ownership flats Act, and suggest a few plausible and sound improvements in Section 79-A process backed by the, collected data from study area, its analysis other similar literature survey respectively.

Методы пространственного анализа: возможности оценки рыночной стоимости объектов недвижимости

The work attempts to apply spatial analysis methods within the framework of a comparative approach to assessing the market value of real estate. According to information (on the market value of the property specified in the advertisement for sale, its area, latitude and longitude, the market value of one square meter), collected from open sources, about 3,923 one-room apartments in St. Petersburg that were on sale at as of March 2023, a database has been formed on the basis of which, using a multifunctional geographic information system, a digital relief model has been built – a model of a regular network of heights – and a map of the distribution of real estate across city districts with equal intervals of the market value of one square meter has been compiled. For 150 one-room apartments (corresponding to the specified parameters), information for which was not included in the original database, the market value of one square meter was assessed using the constructed digital model. The difference between the calculated values and the market value indicated in advertisements for the sale of apartments, in relative terms, varies from ?9.9 to 8.1%. The mathematical expectation of the measurement difference is 1.89%, and the standard deviation is 4.11%. According to the authors, the method of constructing a digital relief model, in particular a regular network of heights, can be used as part of the implementation of a comparative approach to the assessment of real estate objects when solving applied problems by subjects of valuation detail

Calculation of the estimated cost in the assessment of the market value of real estate

The cases of application of enlarged indicators of the estimated cost of construction are determined. The classification of aggregated indicators and prices of the estimated cost according to the criterion of the base price is carried out. The characteristics of all the enlarged indicators are given, the features of their use in calculations are determined. The advantages and disadvantages of using aggregated indicators and estimates of the estimated cost of construction to determine the market value of real estate are shown. Calculation formulas are proposed for estimating the market value of real estate and a number of price-forming indicators, including indices of appreciation of the estimated cost of construction.

Spatial Methods for Estimating the Value of Real Estate

Spatial Methods for Estimating the Value of Real Estate

ACCOUNTING AND ACCOUNTING FOR REAL ESTATE TAXES IN THE LIGHT OF DETERMINING THE TAX BASE BETWEEN MARKET PRICES AND MODERN ESTIMATION METHODS

The real estate evaluation to reach the real estate tax base is still in its infancy, especially in the Arab countries, despite its practice for a long time, and the process requires the adoption of clear and specific steps through which to reach the value based on unified approved bases in the evaluation by entities that carry out this task. Thus, our research aims to shed light on the difficulties and challenges faced by the assessment committees specialized in real estate appraisal in the General Tax Authority in the assessment process, especially in choosing the basis of assessment that can be relied upon in assessing real estate, which may negatively affect the proceeds of real estate taxes. On this basis, the main hypothesis of the research is formulated on the relationship between the method of evaluating the value of the property and the exact determination of the rea estate tax base. In order to reach these hypotheses, the most important real estate appraisal methods used to reach the tax base were reviewed and compared with the assessment methods according to the controls used on a sample of Baghdad real estate. Thus, the research recommends the need to reconsider real estate valuation methods and adopt the market method to obtain the highest tax revenues after reviewing the tax price for real estate taxes according to their types

The Innovation Ecosystem and Commercial Real Estate Valuations: How Venture Capital Investment Drives Price Premiums on Commercial Real Estate

The Innovation Ecosystem and Commercial Real Estate Valuations: How Venture Capital Investment Drives Price Premiums on Commercial Real Estate

ПЕРЕДБАЧЕННЯ ВАРТОСТІ ЗЕМЛІ СІЛЬСЬКОГОСПОДАРСЬКОГО ПРИЗНАЧЕННЯ ЗА ДОПОМОГОЮ АЛГОРИТМІВ МАШИННОГО НАВЧАННЯ

The paper considers the prediction of land value using LightGBM, Fast Tree, and Fast Forest machine learning methods. The training dataset is collected from the Internet and contains of 800 rows (in some cases there are data gaps for certain attributes). An overview of the problems of collecting such data is made. From the full dataset (D1), three additional ones were created: without data on land rent price (D2), without data on normative monetary assessment (NMA) (D3) and without data on rent price and NMA (D4). Using the LightGBM method has the best prediction results, but in some cases Fast Tree’s prediction quality is similar to LightGBM. Removing NMA data from the dataset improves the quality of prediction, because after calculations it turned out that there is no correlation between market value and NMA. Also, unlike real estate value prediction, gradient boosting methods provides better results. A correct prediction is defined as a prediction with no more than 10% error, which follow similar approaches in other researches. Depending on the dataset and the chosen method of machine learning, the quality of prediction ranges from 35% to 92% of correct predictions. The paper describes research’s limitations and possible ways to improve the quality of land price predictions for reviewed machine learning methods.

A Review of Factors Affecting Real Estate Value for Property Developers in UAE

The research study aims to examine factors that have influenced the performance of property developers in the construction and real estate sector of UAE and Middle East with a view to identifying the root causes faced by property developers while completing construction projects. The UAE real estate market has witnessed significant losses and is facing a severe downturn, especially after the 2008 international financial crisis. Though the market has slowly managed to recover, real estate development continues to be hindered by several factors. The current study reviews some of the key variables that impact real estate value for property developers in the UAE. It examines factors that influence the price of real estate in the UAE and other countries, such as Kenya, Nigeria, Malaysia, Saudi Arabia, and countries in Europe. The current review shows that property developers must account for the current supply of properties, the prevailing interest rates, crude oil price, investor purchasing power and liquidity, USD exchange rate fluctuations, and regulatory impositions by the Real Estate Regulatory Agency (RERA) when determining the current and prospective value of a property in the Middle East, esp, UAE. Other micro factors that impact the value of property include location, availability of amenities, and property features. The impact of the UAE stock market on property value remains unclear. Furthermore, this research also analyzed relationship in stick market and real estate boom and found positive relation in USA but no such relationship was seen in UAE markets.

Assessing the Effects of Architectural Design on Commercial Real Estate Value Case of Harare Central Business District (CBD)

Assessing the Effects of Architectural Design on Commercial Real Estate Value Case of Harare Central Business District (CBD)

THE INFLUENCE OF LIQUIDITY RATIO, PROFITABILITY RATIO, AND SOLVENCY RATIO ON COMPANY VALUE IN THE PROPERTY AND REAL SECTOR COMPANIES ESTATE IN INDONESIA STOCK EXCHANGE 2016-2017 PERIOD

This study aims to analyze the partial effect of the Current Ratio (CR), Operating Profit Margin (OPM), and Debt to Equity Ratio (DER) on firm value (PBV). Analyzing the simultaneous effect of the Current Ratio (CR), Operating Profit Margin (OPM), and Debt to Equity Ratio (DER) on firm value (PBV) in property, real estate, and building construction companies in the Indonesia Stock Exchange. The population in this study were all property, real estate, and building construction sector companies listed on the IDX from 2016 to 2017. In comparison, the sample of this study was determined by purposive sampling to obtain 19 sample companies. The type of data used is secondary data obtained from www.idx.co.id. This study uses multiple linear regression analysis to see the effect of each independent variable on the dependent variable. Based on the results of multiple regression analysis with a significance level of 5%, the results of this study conclude, simultaneously, Current Ratio (CR), Operating Profit Margin (OPM), and Debt to Equity Ratio (DER) have a significant effect on firm value (PBV). Partially Current Ratio (CR) and the Debt to Equity Ratio (DER) have a significant effect on firm value (PBV). While the variable Operating Profit Margin (OPM) partially has no significant effect on firm value (PBV).