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Modern Technologies in the Real Estate Market—Opponents vs. Proponents of Their Use: Does New Category of Value Solve the Problem?

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  • Małgorzata Renigier-Biłozor

    (Institute of Spatial Management and Geography, University of Warmia and Mazury in Olsztyn, 10-720 Olsztyn, Poland)

  • Sabina Źróbek

    (Institute of Spatial Management and Geography, University of Warmia and Mazury in Olsztyn, 10-720 Olsztyn, Poland)

  • Marek Walacik

    (Institute of Spatial Management and Geography, University of Warmia and Mazury in Olsztyn, 10-720 Olsztyn, Poland)

Abstract

The scientific literature and practical studies show that one of the main challenges facing the ongoing development of sustainable real estate markets is the understanding of the specifics of real estate as an object of increasing importance in the global economy. Misinterpretation of the principles of modern valuation models causes conflict between opponents and proponents of their use. To reconcile the two sides, the authors of this study propose the possibility of extending the methodology with new solutions—hybrid automated valuation models—and introducing a new value called the rough value. The study mostly draws on monographic and deductive reasoning methods, which includes an analysis of the basic principles of real estate appraisal (as described by internationally recognized professional standards) and valuation methods. The introduction of proposed solutions to valuation practice should be preceded by the development of unified standards and the principles of their application.

Suggested Citation

  • Małgorzata Renigier-Biłozor & Sabina Źróbek & Marek Walacik, 2022. "Modern Technologies in the Real Estate Market—Opponents vs. Proponents of Their Use: Does New Category of Value Solve the Problem?," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13403-:d:945381
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    References listed on IDEAS

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    1. Renigier-Biłozor, Małgorzata & Walacik, Marek & Źróbek, Sabina & d’Amato, Maurizio, 2018. "Forced sale discount on property market – How to assess it?," Land Use Policy, Elsevier, vol. 78(C), pages 104-115.
    2. GLUMAC Brano & DES ROSIERS François, 2018. "Real estate and land property automated valuation systems: A taxonomy and conceptual model," LISER Working Paper Series 2018-09, Luxembourg Institute of Socio-Economic Research (LISER).
    3. Patrick Francois, 2018. "Comment on "Artificial Intelligence and Economic Growth"," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 282-289, National Bureau of Economic Research, Inc.
    4. Daikun Wang & Victor Jing Li, 2019. "Mass Appraisal Models of Real Estate in the 21st Century: A Systematic Literature Review," Sustainability, MDPI, vol. 11(24), pages 1-14, December.
    5. Renigier-Biłozor, Malgorzata & Janowski, Artur & d’Amato, Maurizio, 2019. "Automated Valuation Model based on fuzzy and rough set theory for real estate market with insufficient source data," Land Use Policy, Elsevier, vol. 87(C).
    6. Renigier-Biłozor, Małgorzata & Janowski, Artur & Walacik, Marek & Chmielewska, Aneta, 2022. "Modern challenges of property market analysis- homogeneous areas determination," Land Use Policy, Elsevier, vol. 119(C).
    7. Sabina Zrobek & Oleksandra Kovalyshyn & Małgorzata Renigier‐Biłozor & Stepan Kovalyshyn & Oleg Kovalyshyn, 2020. "Fuzzy logic method of valuation supporting sustainable development of the agricultural land market," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1094-1105, September.
    8. Renigier-Biłozor, Małgorzata & Źróbek, Sabina & Walacik, Marek & Borst, Richard & Grover, Richard & d’Amato, Maurizio, 2022. "International acceptance of automated modern tools use must-have for sustainable real estate market development," Land Use Policy, Elsevier, vol. 113(C).
    9. Renigier-Biłozor, Małgorzata & Źróbek, Sabina & Walacik, Marek & Janowski, Artur, 2020. "Hybridization of valuation procedures as a medicine supporting the real estate market and sustainable land use development during the covid-19 pandemic and afterwards," Land Use Policy, Elsevier, vol. 99(C).
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