Volume 22 (2015): Issue 4 (February 2015)

Real estate compared to other goods is distinguished by a high specificity. One of the signs of these specifics is the interdependence or correlation between property and its surroundings. On the one hand, the factor of closest neighborhood can largely shape the value of the property, while on the other hand, the function, use and development of real estate can strongly affect nearby property and the image of their entire neighborhood. The dynamics of the interdependence between the property and its environment reveal themselves most clearly in moments of transformation of real estate and its use.

This study has a research character. The focus of this article is one of the aspects of interdependence - the impact of the property, its use and development on its closest surroundings. The aim of this article is to show the manifestations of different types of external effects generated by the property.

Case study research was conducted on the housing market in Lodz for the purpose of the article. The study included the analysis of 3,444 transactions made during the period from July 2005 to December 2009 in the area of 27 precincts representing the proximal and distal environment of the Manufaktura complex. The study analyzed the impact of the transformation from a post-industrial area into a multifunctional one, with the dominant function of trade, on the prices and marketability of apartments located in the vicinity of the complex.

The performed analyses have not clearly confirmed the impact of the carried out transformations on the price of housing in areas surrounding the Manufaktura complex. However, the analyses did reveal that the proximity of the multifunction complex may be one of the factors influencing the activity of the housing market in the area.

This paper deals with selected theoretical issues pertaining to the setting of asking prices by housing developers. Determinants of the buyer’s and seller’s reservation prices have been identified. The advantages and disadvantages, in terms of behavioral economics, of the pricing strategies practiced by housing developers have been indicated. The strategy based on fixing an asking price roughly equal to the estimated market value of the property was compared with the strategy based on offering an inflated asking price (with the assumption of price negotiations). A second comparison concerned the strategy of price disclosure compared with the strategy of price non-disclosure.

The reflections contained within the article were based on behavioral economics and marketing theory. The discussion was based largely on foreign articles, observed examples of pricing policy carried out by housing developers in Poland, and information obtained from housing developers and real estate brokers who are active on the primary market.

The real estate market is regarded as a part of the capital market. Just as they invest in securities, investors allocate their funds in real estate, hoping to make a sound profit. There are many tools that support the process of investing on the stock exchange, such as a technical analysis. There are also proven methods that help predict future prices of assets on the basis of their historic quotations.

The article is an attempt to transfer the Japanese method of candlestick charting used in the technical analysis of securities onto the real estate market. The method has been implemented on the residential real estate market due to the relatively large number of transactions being concluded there.

Constitutional transformation in Poland, which took place at the turn of the eighties and nineties of the past century, was directed, among others, at creating a civil society and a free market. Changes in people’s mentality quickly brought about economic changes based on the concept of private ownership. Yet one should remember that in the period preceding this time, personal assets were significantly limited. Many people’s assets were repossessed by the state in nationalization or expropriation processes.

Present regulations permit getting these assets back. This is possible in cases when the repossessed real estate was misused with the purpose of expropriation, or it became needless. Real estate is also reacquired via invalidation of administrative decisions or provisions of law. Real estate owners and their legal successors can apply to get back real estate. It is possible to get compensation for assets which cannot be taken back in actuality, which should correspond with the actual value of the lost rights. The level of compensation should be determined on the basis of real estate market value. This value is determined for the day the decision to determine compensation is issued, taking into account the state and purpose of the real estate on the day the document approving the repossession of the real estate was prepared.

The authors present changes in law provisions connected with spatial planning in Poland from the year 1946, when the first decree connected with this topic entered into force, to this day. They describe documents kept in state archives which should be used by valuers. They also show, on the basis of examples, how important the correct determination of the intended use of real estate is, taking into account documents that have been created over the years.

An important step in understanding how the real estate market functions is the process of determining the quality of properties, which is based on the principles of selecting their identifying features. It is a difficult process often affected by errors, which result from a subjective approach and a lack of clear methods of transition from identifying features to the assessment of their quality. An interesting starting point for carrying out the assessment of space quality might be its utilitarian perception.

Urbanized space is designed to meet the needs of humans, just like industrial products. As a result of this, methods of evaluating objects for the purpose of production optimization were adapted in order to determine the quality of utilitarian space, which can also be treated as properties subjected to market transactions. Quality is the state of fulfilling a given set of requirements. It surrounds us wherever we are to affect us. Quality is the guiding principle in using or purchasing any types of goods or services. Qualimetric methods, i.e. the theory of quality, are characterized by the principles and methods of measuring quality.

The aim of this paper is an attempt to apply qualimetric methods to determine the qualities of properties which form the basis for identifying urban space. The implementation of these methods for the purpose of identifying and quantifying the state of market features can become both an important tool in determining the market value of a property and giving rise to new directions of market analysis.

The article deals with the subject of the planned real estate changes in Poland as viewed in relation to the solutions accepted in Latvia. The current basis for real estate tax is a set fee per 1m² of the estate’s area established in a town council resolution, taking into account the maximum fees established by the Minister of Finances. Currently, the owners of real estates with identical area often pay the same tax regardless of the location, condition and function of the real estate formulated in the plan. The cadastral tax currently in preparation addresses these and other features which influence the value of real estate. A set cadastral value approximate to the market value will serve as the basis for determining the cadastral tax. The principles of real estate tax retrieval in Poland are not clearly established which is why it might prove useful to use the experience of other countries undergoing similar governmental changes. The article makes references to tax solutions recognized in Latvia in the domain of tax fees, valuation principles and problems accompanying real estate tax retrieval.

The main purpose of the paper is to present some of the mechanisms connected with the functioning of the Polish housing market, with due regard to demand and supply volatility as well as the changing financial conditions at the time of the global financial crisis of the first decade of the present century. Special attention is given to the financial and legal regulations concerning the housing market, which were introduced in response to the economic downturn.

On the basis of research conducted by the authors, as well as available reports and statistics for 2007-2013, the article will explore market phenomena (the size and pattern of demand, supply and prices on the housing market, and the changes they undergo) on the one hand, and the legal and financial regulatory changes directly affecting them, on the other. It will also study the effects of the implementation of the recommendations made by the Polish Financial Supervision Authority (KNF) by banks in the wake of the global financial crisis. These cause banks to tighten their credit policies and, accordingly, have an impact on their loan portfolios. Information from secondary sources has also been used, notably from the Central Statistical Office (GUS), the KNF, the National Bank of Poland (NBP), as well as the Polish Bank Association (ZBP) and the Credit Information Bureau (BIK). Changes that occurred during the period of economic crisis in the availability of housing have also been examined.

Space as a public good should be used in a way that is consistent with recognized social, cultural, aesthetic, economical and ecological values. The optimization of space is associated with its limitations, thus it should be subjected to rational management. Optimizing the function of city space involves identifying the most mismatched features of the area and a proposal to convert them into functions best suited with respect to the existing natural and anthropogenic, social, economic and ecological conditions. The selection criteria of the optimal use of land will be presented, as well as the parameters characterizing them and the possibility of using chosen multi-criteria methods of analysis. Social, economic and ecological criteria adopted for the analysis are the basis for the sustainable development of an area and coincide with factors which ought to be taken into account during the development of land-planning documents.

Demographic factors next to economic, political and legal ones, are important elements determining the development of the housing market. The analysis of the age structure of the population and of the dynamics of change shows that the population of baby boomers in the age group that is actively entering the labor market and becoming independent is a stimulant for the development of the housing market. Individuals who are gaining economic independence generate new needs and, with appropriate financial resources, also future demand for their own accommodation.

Deliberations regarding the housing market benefit noticeably from the analysis of home buyers’ age structure, especially in the context of the family life cycle. This issue became the focus of our study, which aims to determine the age of apartment buyers on the local market during an economic downturn and state interventionism in the form of preferential mortgages.

The analysis makes use of information from notarial acts (including the personal identity number PESEL - the year of birth of the purchaser) and statistical tools. The results of the study may support the decisions and direction of state aid aimed at meeting housing needs.

Property is worth only as much as market participants are willing to pay for it - that is as much as the potential of the property. Determining the potential of real estate is an extremely difficult task, because certain properties can be viewed in different ways. A person’s attitude towards a given real estate finds reflection in the value of the property.

Accordingly, the value of a property appears only when there is a relation of value, such as when the property catches the buyer’s attention. This article raises important issues which determine the value of real estate. It reveals the value of property as a multidimensional category (spatial, economic etc.). The concept of value is characterized by peculiar dynamics; therefore, the value of a property is also characterized by dynamic traits.

In order to confirm the above thesis it is essential to isolate the most important factors that create the “field of value” and to examine how individual determinants influence the potential of the property.

The purpose of this study is to examine whether changes in the local real estate market influence the dynamics of property values. In order to achieve this objective, research was carried out on a local real estate market. As a result of the research, indicators characterizing the dynamics of value were determined.