The built environment takes a core position between architectural professionals, economists, geographers, and other fields. The object of this research is the mechanism of value transfers between architectural objects and their market value. Architecture is the art and science of designing space from the macro level of urban planning, urban design, and landscape architecture to the micro level of construction details and, sometimes, furniture. Architectural variables in econometric models are used to identify spatial dependency, spillovers of value, externalities, links between 'good' architecture and market value, heritage aspects, contributions to sustainable development, and architecture as public good. While many studies have focused on the determinants of the real estate market value, the aim of this research is to capture the areas of influence of architectural variables on the market value of a property. To structure that influence, we analyzed the types of value a built environment

The aim of this research is to establish a methodological background for understating the real estate macro dynamics and the role played by architecture in explaining the real estate market value fluctuations. Although various models of the housing market fluctuations have been developed, the fundamental question of what drives the real estate market value is still peculiarly neglected. Housing market value fluctuations can be largely explained by macroeconomic fundamentals, housing market indicators as well as the social, political and cultural situation. After assessing these fundamentals of the real estate market value, other factors may be added such as short-term dynamics and irrational factors, contributing to an instantaneous unpredictability of the real estate market. Nowadays there is a belief in society that housing is an investment opportunity. An assumption can be made about the speculative and irrational nature of the housing market, having impact on the real estate market value. Comparing the housing market to the stock market, the housing market has much higher cost of carry and complicated administration to it; and therefore, the real estate market is highly inefficient. Because of the irrational nature of human behavior, similarly to stock prices, the housing market is driven by expectations. The originality of this research lies in the fact that irrationality of human behavior suggests looking at other sciences, with architecture being a tool to bring those irrationalities into the real estate market. Given that behavioral economics accounts for a significant part of irrationality of market behavior, the hypothesis can be ventured that architecture, as a human interaction in the process, can have its own causal role in fixing real estate market value.

A housing price, not considering its change over time, is widely determined by hedonic properties. This is common in literature; however, there is a significant part of a price, the so-called unexplained variance, that is not captured by hedonic models. The scientific problem of this research is how to classify and visualize architectural factors that might have an influence on the market value of a dwelling. The object of the research are architectural factors in a housing market value analysis and the aim of research is to describe the theoretical framework that defines the structure and scope of architectural variables influencing a housing market value. Not all architectural factors described in the literature review are equal in terms of scale, measurability, public or private context, aesthetic or functional priority. A systematic approach would be to classify architectural factors as a matrix of built environment properties. Two orthogonal dimensions can be identified: architectural factors spanning from non-design (functional, utilitarian) to design (abstract, unexplained) and factors spanning from architectural design (private) to urban design (public). A multidimensional and complex system of architectural variables influencing a housing market value exists. Understanding this system is crucial for a housing development to succeed.

There is great interest in identifying and modelling real estate market bubbles over time. However, the spatial dimension of those bubbles gets less attention. While building on the theory of real estate market equilibrium and formation of market bubbles, this research focuses on the spatial bubbles of the market value of apartments inside a city. This approach adds another dimension to the phenomena of real estate market bubbles. The scientific problem of this study is whether the spatial differentiation of real estate encourages the formation of spatial bubbles in real estate market. The object of research is the spatial bubbles in real estate market. The aim of research is to identify the impact of spatial bubbles on real estate market value. Because of the nature of real estate market, the supply and demand of real estate does not match, therefore real estate almost never reaches the equilibrium market value and bubbles appear. The main idea behind this research is that the supply and demand equilibrium model can be applied not only to the changes over time but also across space inside a city. The spatial bubbles appear because of unexplained variance. The empirical research focuses on unexplained variance across space of market value of homogeneous apartments in two major cities in Lithuania. The prominent variance is eliminated through careful selection of projects and control variables such as floor and size of an apartment, distance to civic points and location. Up to 39% of unexplained variance of apartment market value across space was found when looking at 3D diagrams of residualised apartment market value of the selected cities. The main reasons behind formation of those spatial bubbles should be addressed by further research for deeper understanding of the phenomenon of spatial bubble formation.

The position of architecture between market goods and public goods is addressed in this study. A transition of architectural objects of built environment from market goods towards public or nonmarket goods is presented in literature review. The real estate market value is highly influenced by concepts of externalities and public goods, therefore being highly spatially dependent and making the process of the real estate valuation more complex. The internalization of these externalities and public goods is impossible because of the nature of public space in the city. The concept of value and different types of value, like exchange, use, image, social, environmental, cultural value, are also presented in literature review. These different types of value are transferred to value in exchange when estimating market value. The aim of research is to calculate the amount of the real estate market value that is influenced by externalities, public or nonmarket goods. The process of value transfers between market and public is also discussed in this study. In the research part prices of similar apartments measure the coefficient of variance. Newly constructed apartment buildings with partial finishing interior within city boundaries are selected expecting their price to vary only because of different amount of externalities and public goods available inside district/region of selected building or provided by the actual building itself. The results show that up to 29% of the real estate market value is influenced by public or nonmarket goods. Implications of further research suggest controlling for market segmentation and architectural quality variables