Reflecting the Sustainability Dimensions on the Residential Real Estate Prices

Abstract

The paper analyzes the reaction of residential property prices to sustainability attributes and the extent to which they capitalize the effects of sustainability on real estate markets in EU-28 countries in the period 2000–2018. Given that the sustainable real estate market is mainly driven by demand, the sustainability attributes included in the study reflect both buyers’ expectations and their investment potential in sustainable residential properties, and developers’ efforts to become more “sustainable” through responsible property investment. In order to correspond to the current meaning of sustainable development, the variables capture the four dimensions that give content to the concept of the quadruple bottom line: economic, social, environmental and institutional. Using panel data and the two-stage least squares (2SLS) method, the research reveals a pronounced sensitivity of residential property prices to all sustainability dimensions in countries considered leaders in implementing the Sustainable Development Goals (SDGs), characterized by a strong institutional environment, and efficient and transparent real estate markets. In countries less committed to SGD implementation, weak governance and higher corruption negatively affect the transparency of real estate markets, and the dynamics of the price of residential transactions are determined only by the economic and social dimensions of sustainability.

Modeling and Simulation of Real Estate Valuation Based on Genetic Neural Network Model

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“…In equation ( 2), y c is the calculated output layer signal, c = 1, 2, 3 ⋯ o and f 2 are the output layer transfer function, and w cb is the weight between the hidden layer z b which is defined by mean square error, which is defined as the following equation (3).…”

Residential real estate analysis in Serbia

“…Furthermore, population transitions affect the value of residential real estate, which are influenced by social and cultural differences between countries (Stanojević & Tomašević, 2021). Momentum data on housing can be used to better assess the future value of collateral for mortgage lenders (Beracha & Skiba, 2011), but also buyer purchasing power, which is related to real estate characteristics (Mironiuc et al, 2021).…”

Reflecting Sustainability in the Analysis of Highest and Best Use: Evidence from Polish Municipalities

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