Andrzej Biłozor

Rating methodology for real estate markets - Poland case study

The development of the real estate market is conditioned by a variety of endogenous and exogenous factors. Selected factors determine the local character of the real estate market, whereas others contribute to its classification as one of the main branches of the national economy. Rapid economic growth and the search for new investment opportunities have turned the real estate market into a highly competitive arena where various players carry out diverse investment strategies. Investors search for similarities that would enable them to develop risk minimizing strategies. Ratings are a modern tool that can be deployed in analyses and predictions of real estate market potential. This paper proposes a methodology for developing real estate market ratings, and it identifies the types of information and factors which affect decision-making on real estate markets. The following research hypotheses are formulated and tested in the article: 1) a real estate market can be rated in view of its significance for the local and national economy, 2) real estate market ratings support market participants in the decision-making process.

Rating attributes toolkit for the residential property market

The growing significance of the real estate market prompts investors to search for factors and variables which support cohesive analyses of real estate markets, market comparisons based on diverse criteria and determination of market potential. The specificity of the real estate market is determined by the unique attributes of property. The authors assumed that developing real estate market ratings identifies the types of information and factors which affect decision-making on real estate markets. The main objective of real estate market ratings is to create a universal and standardized classification system for evaluating the real estate market. One from the most important problem in this area is collection of appropriate features of real estate market and development dataset. The main problem involves the selection and application of appropriate features, which would be relevant to the specificity of information related to the real estate market and create a kind of coherent system aiding the decision-making process. The main aim of this study is to elaboration set of variables (knowledge platform) that were used to elaborate the real estate market ratings. The results lead to obtain the necessary set of features that constitute essential information which describes the situation on the local real estate market.

Development of a Decision-Making Algorithm for Determination of the Optimal Land Use Function

Abstract Although the arrangement of urban space use functions is the outcome of the activity of many different entities, it is not a random activity, as there are general principles guiding the creation process of such a structure. The correct selection and arrangement of areas in a city for different types of use is of significant importance for the fulfillment of economic, functional and planning needs of the city. The concept of land division therefore has a decisive effect on the spatial structure of every city. The growing shortage of free urban space causes, or even forces, its optimal use. The optimization of land use functions in a city aims to verify mismatched land functions and replace them with functions best matched to the present natural and anthropogenic features. Adaptation of problem areas generating “spatial conflicts” should be based on the opinion of the city’s residents to reflect their current needs as well as on economic calculations. This paper presents a procedure for determining optimal states of land use as a tool in the urban space management process. The developed algorithm is designed to form the basis for conducting spatial monitoring, serving to analyze and verify individual land management forms in order to minimize the costs of transformation and maximize income.

Multi-Criteria Land use Function Optimization

Abstract 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.

Streamlining of the Process of Decision-Making in Real Estate Management with Incomplete Information

Abstract This paper presents a streamlined sub-system of decision-making in a real estate market with incomplete data. As we currently observe, various entities collect data and use databases, which entails a problem with their quality and completeness. This results from the specifics of the real estate market, particularly from the nature of the available information, access to it and integral uncertainty. In the first part of this paper, we will present substantive guidelines for the development of a procedure for supplementing missing information. Afterwards, in order to verify the feasibility and effectiveness of the procedure, an implementation simulation will be conducted on the selected example. We would like to emphasize that all decisions are made under the conditions of an information gap.

Information Capacity Database in the Rating Model on the Basis of Polish and Italian Real Estate Markets

Abstract Preliminary data analyses in decision-making systems and procedures are very important for numerous reasons, in particular because the accumulation and analysis of large data sets is costly and time-consuming. The effective use of decision support systems, including on the real estate market, requires the elimination of noise. The authors have proposed to eliminate redundant data with the use of the modified method for evaluating the capacity of the data set, which is applied in the process of classifying the condition of real estate markets. The proposed procedure (subsystem) is an attempt to improve the effectiveness of analyses relating to the development of methods for rating real estate markets. The proposed solutions will be simulated on the example of leading real estate markets in Poland and Italy.

Territorial Marketing as an Element Boosting the Development of a Commune

Abstract Recently, it has become popular to streamline the way of managing territorial units by adapting the marketing approach to a territorial dimension. The majority of cities and communes in Poland have realized that, in order to achieve their set goals under conditions of fierce competition for limited resources, it is necessary to introduce territorial marketing as one of the key and significant own tasks to be implemented. The objective of the article is to develop principles of the effective use and management of the area of a commune by carrying out suitable marketing projects, based on an analysis of the social, economic and geopolitical situation of the commune, with particular emphasis placed on location factors.