rss_2.0Sciendo RSS Feed for Real Estate Management and Valuationhttps://sciendo.com/journal/REMAVhttps://www.sciendo.comhttps://sciendo-parsed.s3.eu-central-1.amazonaws.com/64735e6a4e662f30ba53baae/cover-image.jpghttps://sciendo.com/journal/REMAV140216https://sciendo.com/article/10.2478/remav-2025-0011<abstract> <title style='display:none'>Abstract</title> <p>The price and market value of real estate is influenced by a number of attributes of an economic, legal, physical-technical and environmental nature. Some market characteristics, such as location, neighborhood or area, have a universal dimension, while others result from the specifics of the analyzed real estate segment.</p> <p>The purpose of the survey was to assess the importance of residential real estate characteristics by real estate market participants. Two groups were surveyed. The first was made up of potential buyers and the second was made up of professionals associated with the real estate market (including appraisers, real estate agents). The results obtained were subjected to comparative and selected cross-analysis and discussion.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2025-00112024-12-30T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2025-0005<abstract> <title style='display:none'>Abstract</title> <p>Housing deprivation is often analyzed as the proportion of population affected by housing problems related to a variety of issues. As a result, even if the level of housing deprivation is similar across countries, they may face different housing-related problems. In the presented research, an attempt was made to identify countries similar in terms of the area of housing problems. The specified dimensions were: (1) housing quality, (2) way of using the dwelling, and (3) neighborhood-related issues. The analysis indicated that in the EU, there are countries that do not show an intensification of housing deprivation in any of the areas. In 2020, these were Czechia, Austria, Estonia, and Finland. Countries with a deprivation profile related to housing quality were Romania, Lithuania, Latvia, and Cyprus; and to a lesser extent, also Hungary, Ireland, Slovenia and Belgium. Housing deprivation was mainly related to the way of using the dwelling in Greece, Bulgaria, and - to a lesser extent – also in Denmark, Poland, Croatia and Slovakia. The deprivation profile related to the neighborhood was identified in Malta, the Netherlands, France, and - to a lesser extent - also Spain, Portugal, Italy, Luxembourg, Sweden, and Germany. Housing deprivation profiles in the EU undergo changes in the 2010-2020 decade.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2025-00052024-11-27T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2025-0003<abstract> <title style='display:none'>Abstract</title> <p>Data-driven machine learning algorithms triggered a fundamental change in hedonic real estate pricing. However, their adaptive nonparametric structure makes inference and out-ofsample prediction challenging. This study introduces an explainable approach to interpreting machine learning predictions, which has not been done before in the local market context. Specifically, Random Forest and Extreme Gradient Boosting models are developed for residential real estate price prediction in Warsaw in 2021 on 10,827 property transactions. Model-agnostic Explainable Artificial Intelligence (XAI) methods are then used to investigate the black box decision making. The results show the practicability of applying XAI frameworks in the real estate market context to decode the rationale behind data-driven algorithms. Information about the relationships between input variables is extracted in greater detail. Accurate, reliable and transparent real estate valuation support tools can offer substantial advantages to participants in the real estate market, including banks, insurers, pension and sovereign wealth funds, as well public authorities and private individuals.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2025-00032024-11-27T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0039<abstract> <title style='display:none'>Abstract</title> <p>The study explores the application of Partial Dependence Plots (PDP) in the analysis of real estate features. The study centers on a selected real estate market in Szczecin, Poland, aiming to highlight the efficacy of PDP in understanding and interpreting the complex relationships between various features and property prices. The primary objective is to showcase the potential of PDP in capturing the nuanced interactions between real estate attributes and their impact on market prices. The CatBoost model, known for its robust handling of categorical features and strong predictive capabilities, is employed as the machine learning algorithm for this analysis. The performance of this model will be compared against a traditional multiple linear regression model, providing insights into the advantages of leveraging advanced machine learning techniques in real estate analysis. Results obtained from the analysis will be presented and discussed, shedding light on the interpretability and accuracy of the CatBoost model compared to the traditional linear regression approach. The presentation will conclude with implications for real estate practitioners and researchers, emphasizing the potential for PDP to enhance the transparency and understanding of complex models in the real estate domain. This research contributes to the growing body of knowledge on the application of advanced machine learning techniques in real estate analysis.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00392024-10-16T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0037<abstract> <title style='display:none'>Abstract</title> <p>The article presents considerations on the importance of the provisions of the municipality’s general plan referred to in the Act of March 27, 2023 on Spatial Planning and Development, as well as the importance of the provisions of the local general plan, referred to in the Act of July 12, 1984 on Spatial Planning when estimating real estate for the purposes of determining the amount of compensation and fees referred to in Art. 36 section 3 and 4 of the Act on Spatial Planning and Development. Due to the fact that the Act of 1984 refers to the general spatial development plan of settlement units (called the general plan), prepared and adopted on the basis of the Act of January 31, 1961 with the same name, the article also discusses this type of plan. Moreover, activities related to determining the value of real estate were indicated, including the above-mentioned planning purposes, and the understanding of concepts such as “real estate data” and “intended use in the local plan” were presented. Attention was also focused on the essence of the above-mentioned types of plans, as well as the differences between the general plan of the commune and the local general plan and general spatial development plan of settlement units.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00372024-10-16T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2025-0001<abstract> <title style='display:none'>Abstract</title> <p>Machine learning algorithms are increasingly often used to predict real estate prices because they generate more accurate results than conventional statistical or geostatistical methods. This study proposes a methodology for incorporating information about the spatial distribution of residuals, estimated by kriging, into selected machine learning algorithms. The analysis was based on apartment prices quoted in the Polish capital of Warsaw. The study demonstrated that machine learning combined with geostatistical methods significantly improves the accuracy of housing price predictions. Local factors that influence housing prices can be directly incorporated into the model with the use of dedicated maps.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2025-00012024-10-01T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2025-0002<abstract> <title style='display:none'>Abstract</title> <p>Representatives of Generation Z are characterized by a propensity for entrepreneurship, social awareness, interest in social, environmental, and political issues and ease of movement in the digital sphere. In the context of the real estate market, generation Z is becoming an important collective and understanding the preferences, expectations and behaviors of people representing this generation is crucial for the development industry, real estate agencies and investors. The aim of the study was to find out the housing and investment plans of people representing Generation Z. In addition, Generation Z’s knowledge of the real estate market was identified. A literature review on real estate and Generation Z was conducted. The survey showed sufficient knowledge of basic concepts related to the real estate market. The overwhelming majority of respondents believe that housing policy in Poland needs to be changed, and the most preferred direction of change was to reduce property prices. Attention was first and foremost paid to the price per square meter of real estate. Among the 90.1% of respondents who declared they would buy a property, more than 70% intend to finance the purchase in whole or in part with a mortgage.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2025-00022024-09-13T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0038<abstract> <title style='display:none'>Abstract</title> <p>The endowment effect is one of the key behavioral biases causing friction in the housing market. It results in sellers’ offer prices being inflated relative to buyers’ bid prices. Although this effect has been confirmed in many studies, little is known about how it can be reduced or eliminated. Therefore, this article assesses the impact of behavioral interventions on the intensity of the endowment effect using the Polish housing market as a case study. The research was based on a lab-in-the-field experiment, in which a hypothetical transaction in the secondary sales housing market was simulated and the recruited respondents were randomly divided into sellers and buyers. The endowment effect was measured by the gap between the average value of minimum prices for which sellers would be willing to sell a dwelling (WTA) and the average value of maximum prices that buyers would be willing to pay to acquire that dwelling (WTP). The results show that the endowment effect significantly decreases but does not disappear after the application of behavioral interventions. The latter consists of highlighting relevant information about the market price of a property and visualizing it graphically. Specifically, before the intervention, the WTA-WTP gap was 7.01%, and after 2.48%.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00382024-09-13T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0030<abstract> <title style='display:none'>Abstract</title> <p>The article applies the method of historical research, using a temporal perspective dating back to 1985, to trace the evolution of market valuation principles for real estate in Poland. These principles evolved similarly to those in many other post-socialist countries, influenced by political and socio-economic transformations and the resulting list of objectives for which these values became essential. The changing legal regulations allowing for the emergence and development of a free real estate market played a decisive role in this process. It was also a period of preparing real estate valuation professionals to meet these requirements. Today, the methodology of valuation, under increasing pressure from various real estate market entities and the rapid advancement of intelligent data collection and processing technologies, is undergoing further evolution. In many countries, including Poland, lively discussions and disputes are ongoing regarding the legal authorization of statistical tools and automated valuation models in valuation practice. These possibilities are being considered particularly in the context of mass property valuations for tax purposes. The methodology involves the analysis of Polish legal provisions, foreign literature, and documents proving the gradual marketization of valuation principles.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00302024-09-10T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0035<abstract> <title style='display:none'>Abstract</title> <p>Public housing privatization has changed the ownership and management patterns in Europe, leading to the emergence of many housing properties with a mixed (public-private) ownership structure. This study investigates the actual privatization degree of ownership and management in public-private housing condominiums (PPHCs) in Poland. In particular, the dependencies between these two types of housing privatization were identified. To achieve the aim of the study a multi-stage research methodology was applied, which was based on the triangulation of research methods such as questionnaire interviews, cluster analysis (using the agglomeration technique and Kohonen artificial neural network), and correlation analysis. Empirical research was conducted on the sample of the 30 largest municipalities from the Warmia and Mazury Province in Poland. The results showed different quantitative characterization and rather loose dependencies between the privatization of ownership and management of municipal housing in the sample of municipalities. This did not allow us to confirm the hypothesis that the privatization of ownership of municipal housing stock in PPHCs under study adequately drove the privatization of management in these properties. Therefore, the analysis of social, managerial, and institutional barriers to the privatization of property management services in PPHCs was recommended as a direction for further research.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00352024-09-03T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0036<abstract> <title style='display:none'>Abstract</title> <p>The composition of the housing market is shaped by the social dimensions of buyer heterogeneity, prompting households to prioritize housing development to fulfill their needs efficiently. Both quantitative and qualitative dimensions of housing heterogeneity in transactions stem from the different characteristics, needs, and incomes of residents in different areas. The relevance of this research lies in understanding the social dimensions driving housing diversity among buyers and sellers. In a market economy, meeting the evolving needs of market participants is crucial. Consequently, stakeholders in the housing market focus on understanding buyer needs, changing trends, and adapting to the heterogeneity of the housing options. The housing market, characterized by significant information asymmetry, underscores the importance of comprehensively studying the social dimensions of housing diversity, particularly its impact on market value and transaction prices. Viewing households as heterogeneous social systems highlights the dominance of the social dimension in the housing market, necessitating a comprehensive exploration of its quantitative and qualitative aspects. Findings can inform managerial decisions to mitigate information asymmetry, improve housing availability, stabilize prices, and improve the market value of properties.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00362024-08-29T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0033<abstract> <title style='display:none'>Abstract</title> <p>The purpose of the paper was to provide an empirical examination of earnings management among internally and externally managed REITs. The empirical accounting literature claims that internal management of a firm does not constrain earnings management, while others argue in favor of internal management for firms. Using a sample of listed South African REITs for the 2013 - 2021 time period, we examine the relationship between management structures and earnings management. We do not find any aggressive practice in internally managed REITs during the study period. The study’s findings imply that good corporate governance is a critical safeguard for stakeholders in exceptional circumstances when REITs have special incentives to manage earnings; as a result, it is suggested that REITs’ corporate governance is important, despite being overlooked in some circumstances. Specific to South African REITs, policymakers as well as nominating committees of the board of directors may wish to take note that financial competence is an important quality of external directors in order to effectively curb earnings management. This is the first study to investigate financial sheet manipulation among REITs management structures in an emerging market.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00332024-07-29T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0034<abstract> <title style='display:none'>Abstract</title> <p>The purpose of the study is to econometrically estimate the effect of the direction of window exposure on the unit price of housing. The research hypothesis according to which the exposure of windows to the east increases the unit price of apartments is verified, and is based on observations of the market for units in buildings with exposure to two sides of the world (east and west). Research into the various characteristics that affect real estate prices is being conducted around the world. The main focus is on the impact of features which we are certain about, i.e. date, area, number of rooms, etc., i.e. non-contentious and reasonably easy to identify as to the condition of the feature. The results of the study are to capture certain regularities that will give a glimpse of how the exposure of the apartment’s windows to a given direction of the world affected prices. Through the implementation of the survey, it can be determined whether a particular side of the world is better perceived by buyers. The study was conducted on data 2015-2023 in one of Poland’s largest cities - Szczecin, where the exposure of the windows of the apartments was to the east or west.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00342024-07-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0032<abstract> <title style='display:none'>Abstract</title> <p>Real estate appraisal, also known as property valuation, plays a crucial role in numerous economic activities and financial decisions, such as taxation assessment, bank lending, and insurance, among others. However, the current methods used in real estate appraisal face several challenges related to fundamental aspects such as accuracy, interpretation, data availability, and evaluation metrics. Therefore, the purpose of this research is to identify the current status of real estate appraisal methods, highlighting challenges and providing guidance for scholars to undertake further research in addressing them. The methodology retrieves the most recent papers published in the Scopus database over the past five years, covering the period from 2019 to the end of 2023, with an emphasis on empirical studies. These retrieved papers serve as references to capture the current status of real estate appraisal methods. The research findings confirm a clear trend towards increased utilization of artificial intelligence techniques, especially machine learning, but with unfinished work regarding related challenges. Artificial intelligence techniques enhance the accuracy of real estate appraisal, paving the way for improved decision support systems in business, financial, and economic sectors.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00322024-06-07T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0027<abstract> <title style='display:none'>Abstract</title> <p>This study fills a significant research gap in Malaysian government-led homeownership and affordability. Centered on crucial market attributes influencing these initiatives, insights from low-income groups were obtained. The primary aim of this study was to assess the importance of various market attributes on government homeownership initiatives in Malaysia. The data were collected from low-income groups using a structured questionnaire, providing valuable insights into the unique challenges faced by this demographic. A Relative Importance Index (RII) was employed to analyze the data, revealing that Financial Market Factors, Household Financial Capacity, Housing Affordability and Accessibility, and Government Housing Policies were the market attributes of the highest importance in shaping government homeownership efforts. The results of the exploratory factor analysis demonstrated that the Financial Market Factor was the most influential component, as indicated by its mean rank. This study sought to incorporate the valuable perspectives of respondents regarding integrating future value into financing models. Respondents' opinions reflected a significant level of support for such innovative approaches. This study examines the crucial market attributes influencing government homeownership initiatives in Malaysia. The findings underline the potential of incorporating future value into financing models to enhance housing affordability for low-income groups and promote broader homeownership objectives.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00272024-06-07T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0028<abstract> <title style='display:none'>Abstract</title> <p>The assessment of income-producing properties - considered as the bulk of the existing assets - has rapidly increased. An efficient assessment of the market value of this kind of properties requires an adequate involvement of the main risk factors of the local real estate market for the determination of the capitalization rate for the income approach application. The aim of the work is to identify the most significant local real estate risk factors related to the market, the tenant and the context on the residential capitalization rate. The development of a regressive methodological approach applied to the residential sector of the city of Rome (Italy) is proposed. The obtained results show the susceptibility of the analyzed capitalization rate to the variation of the local real estate risk factors, in particular the per capita income and the variation of the rental values, by also considering the influences of the exogenous shocks and the expectation of the investors. The practical implications of the work consist in the possibility for evaluators to assess the likely changes in the capitalization rate in different residential contexts if variations occur in the most influential local risk factors identified by the proposed model.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00282024-05-22T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0031<abstract> <title style='display:none'>Abstract</title> <p>This paper investigates the anchoring bias in the real estate market, focusing on the impact of uninformative random values on price estimations. Through a randomized controlled trial, the study examines whether selective accessibility contributes to the anchoring effect and to what extent the bias is transmitted from estimated asking prices to transaction prices on the primary housing market. The study was conducted in 2023 among Krakow University of Economics students on the example of the Krakow housing market in Poland. A multiple regression model indicates that randomly assigned numbers serve as cues affecting price estimations, with potential differences of up to 10.5% of the asking price offered by a developer. Additionally, gender and decision-making competencies influence estimation patterns, suggesting varying attitudes towards price-setting strategies that can be implemented by developers. These findings contribute to understanding the complexities of decision-making in real estate markets and highlight avenues for further research.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00312024-05-22T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0029<abstract> <title style='display:none'>Abstract</title> <p>This paper employs the econometric models of relationships over time to evaluate the change in the unit prices of apartments on the local secondary markets in Warsaw and Szczecin, depending on various socioeconomic factors. Indicators reflecting the influence of socioeconomic aspects in these cities and the lagged values of housing prices, acting as so-called anchors in this model, were used as the independent variables.</p> <p>The results obtained from this analysis indicate that it is the lagged prices of housing that have the strongest influence on the formation of price levels in the market. The study confirms the presence of the so-called price anchoring effect, which can be understood as the tendency of market participants to accept prices at levels that can be justified not only by socio-economic factors, but also by the price levels established in their minds.</p> <p>The main purpose of the research presented here is to show that there is no close relationship between quoted housing prices and their objective factors. The quality of models reflecting these relationships clearly improves when lagged housing prices are introduced as the explanatory variables, which may confirm the price anchoring effect derived from behavioral economics, meaning that the heuristics of anchoring and adjustment can be applied to the analysis of the behavior of a collective of individuals - many market participants.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00292024-05-22T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0023<abstract> <title style='display:none'>Abstract</title> <p>The issues of “real estate management” (REM) and “real estate valuation” (REV) are very important from the perspective of the economic development of any country. This is because they refer to one of the most important factors of production, which is real estate. The article assumes that REV is all the processes that allow for valuation, while REM is all the processes that allow for the management and administration of real estate. Both of these processes were referred to the “real estate market cycle” (REMC) and the “real estate lifecycle” (REL). The article analyzed 365 articles published in the Journal of Real Estate Management and Valuation (REMV) (eISSN: 2300-5289). The article is a review paper and has been prepared as part of a summary of scientific research carried out between 2013 and 2022.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00232024-05-22T00:00:00.000+00:00https://sciendo.com/article/10.2478/remav-2024-0026<abstract> <title style='display:none'>Abstract</title> <p>With the rapid spread of telecommuting since the COVID-19 pandemic, companies have been relocating to high-end business centers, thereby enhancing the workplace experience for employees, a phenomenon called the "flight to quality." However, this trend’s impact on rents and vacancy rates in individual office buildings has not been extensively studied. To determine the effects of the flight-to-quality phenomenon on individual buildings, we examine the impact of modern amenities, which directly influence employee lifestyles, on rents and vacancy rates in the Tokyo office market. Using a propensity score-based quasi-experimental method, we find that commercial properties with such modern amenities command higher rents and experience lower vacancy rates than those without. The difference in vacancy rates has increased since 2020. However, the significance of these amenities diminishes for properties less competitive in age, size, and location. The results indicate that the "flight to quality" may further polarize the office real estate market into two categories: one for high-end buildings experiencing increasing demand, and another for those with modest amenities experiencing decreasing demand. The findings have implications for office building owners/investors and the government, make educated decisions as to whether to invest in modern amenities, join the quality competition, or encourage urban restructuring.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/remav-2024-00262024-04-27T00:00:00.000+00:00en-us-1