Radosław Wiśniewski

The Effectiveness of Real Estate Market Versus Efficiency of Its Participants

The Effectiveness of Real Estate Market Versus Efficiency of Its Participants Real estate markets (REMs) may be classified as strong-form efficient, semi-strong-form efficient or weak-form efficient. Efficiency measures the level of development or goal attainment in a complex social and economic system, such as the real estate market. The efficiency of the real estate market is the individual participants ability to achieve the set goals. The number of goals is equivalent to the number of participants. Every market participant has a set of specific efficiency benchmarks which can be identified and described. In line with the theory of rational expectations, every participant should make decisions in a rational manner by relying on all available information to make the optimal forecast. The effectiveness of the real estate market is a function of the efficiency of individual market participants. This paper attempts to prove the following hypothesis: the effectiveness of a real estate market may be identified by analysing the effectiveness of its participants. The authors also discuss methods based on the rough set theory which can influence the efficiency and efficacy of market participants, and consequently, the effectiveness of the real estate market and its participants.

The Impact of Macroeconomic Factors on Residential Property Price Indices in Europe

Abstract This paper aims to determine the influence of selected variables on residential property price indices for the European countries, with particular attention paid to Italy and Poland, using a rough set theory and an approach that uses a committee of artificial neural networks. Additionally, the overall analysis for each European country is presented. Quarterly time series data constituted the material for testing and empirical results. The developed models show that the economic and financial situation of European countries affects residential property markets. Residential property markets are connected, despite the fact that they are situated in different parts of Europe. The economic and financial crisis of countries has variable influence on prices of real estate. The results also suggest that methodology based on the rough set theory and a committee of artificial neural networks has the ability to learn, generalize, and converge the residential property prices index.

The Problem of Competition on Real Estate Market on the Example of the Local Housing Market in Olsztyn

Abstract In the economic theory, competition is considered to be a fundamental principle of the free market. Due to the competition, customers get lower prices, better service quality, more and more choices. The competition in the real estate market is a very important factor in its development. Buying or selling real estate is often one of the most important financial transactions, which require the purchaser. With the reference to the above, the participants of the real estate market need to analyse a number of transactions and do a detailed understanding of the market before making a decision and finding a deal that meets all the expectations which will not be diverging significantly from remaining offers functioning in the given area of the market. The phenomenon of competition is very advantageous for buyers of a real estate, because it shows a wide range of various possibilities which one should consider before making a final choice. Times of crisis trigger a tendency of the growing competition in the property market, what results in a decrease in real estate prices. This article brings up the issue of price and non-price competition on the real estate market and the influence which it exerts on the decision of the purchaser. The aim of this paper is to present the phenomenon of the competition at three levels (levels), by examining what relationship occurs between the entities functioning on the market, what occurs between entities and objects, and how the entities, i.e. individual real estate, compete with each other. This study will be conducted with methods of statistical analysis of the market, however Herfindahl-Hirschman Index will be used to measure competition on the local real estate market.

REAL ESTATE MARKET RATING – NEED OR NECESSITY?

Abstract Rating systems developed in Poland and other countries are generally used to evaluate the performance of businesses, organizations, institutions and even entire economies. Comprehensive solutions for assessing real estate markets and individual properties have never been proposed (several systems for evaluating mostly commercial real estate have been developed). This deficiency could be attributed to an absence of databases describing the real estate market and market changes as well as a shortage of coherent methods for analyzing real estate markets. In most cases, however, market phenomena may be difficult to classify because they involve behavioral, social and stochastic elements. This article analyzes the existing systems for rating and ranking markets in different Polish regions and cities. They were compared with information about the classification of real estate markets on the example of selected property markets in Poland. Selected categories were evaluated to determine whether rating methods for real estate markets, including housing markets, should be developed for different Polish cities and regions. The growth potential of local real estate markets was also analyzed.

Ekonomia behawioralna a rynek nieruchomości – teoria i praktyka

The present paper draws attention to behavioral influences on many areas of economic life, particularly the real estate market. Initially, the definitions of the real estate market are reviewed to find, name, and exemplify behavioral elements in the definitions. The issue of uncertainty and risk in the real estate market is of paramount importance since both are inextricably related to psychological aspects of decision-making processes and therefore bridge the gap between behavioral economics and real estate market. The aim of the present paper is to propose a new definition of the real estate market in the behavioral perspective and to present a behavioral model of the real estate market. The theoretical ideas are juxtaposed with practice by means of a survey of the real estate market as perceived by students of UWM in Olsztyn and WSETiNS in Kielce.