Resumen de Rating engineering of real estate markets as the condition of urban areas assessment
Małgorzata Renigier-Biłozor, Andrzej Biłozor, Radoslaw Wisniewski
The real estate market is closely linked with the condition of the area (e.g.: quality of both technical and social infrastructure, function of urban area – residential, commercial, industrial, recreational; characteristics and state of the environment, spatial barriers and obstacles, etc.) and it is determined by the diverse needs and requirements of space users. Cities and regions which want to achieve a dominant position in the network via their policy try to attract as many entities and types of activity as possible. The link between real estate markets and the potential of urban development is becoming increasingly visible and highlighted in many studies. Real estate markets play an increasingly important role in the global economy and attract a growing number of international investors. Consequently, the demand for reliable classification and scoring systems will continue to grow and become an essential tool in the process of investment planning.
The aim of this research is to develop a methodology which could be used to evaluate the state (related to rating levels such as: investment, development, stagnant, crisis; see Appendix A, Table A1) and the condition (related to the components described in the rating scale table, such as: economic situation, quality of life, spatial potential of development, flexible reaction of the market, behavioral factors, etc.; see Appendix A, Table A1) of the real estate market in a form of rating. The established rating classification provides a current, reliable and comparable view of the conditions of cities that can be useful in investment decision-making process. The authors used “Rating Engineering” to highlight the application of mathematics and practical knowledge (regarding the needs of participants) in order to develop an innovative tool for decision-making on the real estate market. The proposed rating system procedure is versatile and can be implemented in any domain, especially when the analysis concerns imprecise and vague data. The study shows that the ratings developed by the authors indicate on a significant correlation with future events in the real estate market, which have a key influence on the development of the real estate market and an assessment of its condition. The received results confirmed that the developed methodology allows to obtain reliable view of the state and condition of residential property market.
