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The Model of Real Estate Valuation as an Investor-Oriented Model

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  • Kucharska-Stasiak Ewa

    (Departament of Investment and Real Estate, Faculty of Economics and Sociology, University of Łódź, Prez. Gabriela Narutowicza 68, 90-136 Łódź, Poland)

Abstract

In the article, the role of demand and supply in the theory of value and valuation is discussed using the case of the real estate market. The research hypothesis tested is that demand is dominant in the valuation process. The purpose of the article is to present evidence in support of the research hypothesis and to explain why real estate valuations need the investor-oriented model of valuation. A critical analysis of the pertinent literature and legislation and the observation method were employed to this end. The need to use the investor-oriented model for real estate valuation is discussed based on: (1) the residual (development) method; (2) the valuation of properties’ potential; and (3) the valuation of a subdivided property to calculate an adjacency fee. The matter under consideration is important not only for theoretical deliberations but also for the practice of real estate valuation and management.

Suggested Citation

  • Kucharska-Stasiak Ewa, 2025. "The Model of Real Estate Valuation as an Investor-Oriented Model," Real Estate Management and Valuation, Sciendo, vol. 33(1), pages 104-112.
    • Handle: RePEc:vrs:remava:v:33:y:2025:i:1:p:104-112:n:1009
    DOI: 10.2478/remav-2025-0009
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    References listed on IDEAS

    as
    1. Case, Karl E & Shiller, Robert J, 1989. "The Efficiency of the Market for Single-Family Homes," American Economic Review, American Economic Association, vol. 79(1), pages 125-137, March.
    2. Drapikovskyi, Oleksandr & Ivanova, Iryna & Renigier-Biłozor, Małgorzata & Źróbek, Sabina, 2020. "How to assess the impact of hope on a change in the use of land on market value?," Land Use Policy, Elsevier, vol. 97(C).
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    More about this item

    Keywords

    valuation; real estate market;

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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