The effects of use values, amenities and payments for public goods on farmland prices: Evidence from Poland*

The article contributes to the debate on how land prices are affected by production values, by farming subsidies and by environmental amenities. The authors carried out a comprehensive review of the literature on the actual determinants of land value and made an attempt to classify different approaches to this matter. Then they performed an empirical case study of the drivers of agricultural land values in a leading agricultural region of Poland. The aim of the study is to establish how the use values of land, amenities and policy payments contribute to land values in the Single Area Payment Scheme (SAPS), which operates in Poland. The study is based on a sample of 653 transactions during the years 2010–2013. A hierarchical regression (ML-IGLS method) was used, where the unobserved heterogeneity is attributed to the location-specific factors at different levels of analysis. Results indicate that the policy payments for public goods decapitalise the value of land, whereas the environmental amenities have a relatively strong influence on farmland prices

The effect of urban green spaces on house prices in Warsaw

In the paper, we analysed the impact of proximity to urban green areas on apartment prices in Warsaw. The data-set contained in 43 075 geo-coded apartment transactions for the years 2010 to 2015. In this research, the hedonic method was used in Ordinary Least Squares (OLS), Weighted Least Squares (WLS) and Median Quantile Regression (Median QR) models. We found substantial evidence that proximity to an urban green area is positively linked with apartment prices. On an average presence of a green area within 100 meters from an apartment increases the price of a dwelling by 2,8% to 3,1%. The effect of park/forest proximity on house prices is more significant for newer apartments than those built before 1989. We found that proximity to a park or a forest is particularly important (and has a higher implicit price as a result) in the case of buildings constructed after 1989. The impact of an urban green was particularly high in the case of a post-transformation housing estate. Close vicinity (less than 100 m distance) to an urban green increased the sales prices of apartments in new residential buildings by 8,0–8,6%, depending on a model

Housing price cycles in Poland – the case of 18 provincial capital cities in 2000–2020

Using a unique dataset of 4,5 million offers, the housing cycles in 18 Polish provincial capitals were identified between 2000 and 2020 before and after the financial crisis. Differences in the course of the cycles depending on spatial diversity are presented, as well as differences in the strength of decreases and increases in individual phases. The examined housing markets in Poland have experienced significant variability in the extent of their cycles. One complete cycle was found in each of the analysed cities. Its average duration was approximately 12 years. In this cycle, residential prices (in real terms) increased by 88% on average, in the upward phase by 158%, while in the downward phase, they decreased by 27% in the cities under study. A correlation was found that implies that the higher the price rises in the upward period, the higher the price correction ensues in the cycle’s downward phase. Moreover, the similarity in fluctuations was present in the metropolitan markets in local housing markets, especially before the financial crisis. Apartment prices continued to grow by 2.9% on average in the real term during the COVID-19 pandemic in 2020

Towards Increasing Residential Market Transparency: Mapping Local Housing Prices and Dynamics

This article attempts to use spatial maps as a way of presenting additional information about the phenomena occurring in the housing market. In our opinion, spatial maps may facilitate understanding and provide more detailed information, which undoubtedly should increase the transparency of the housing market. The study used 12,219 transactions of apartments in Poznań in the years 2013–2017. General principles of price visualization activity and housing market dynamics were established in this study. The map of prices may reflect the location values determined by the quality of the urban infrastructure, distance from specific locations, and environmental factors. Market activity maps reveal areas where the market is dynamically developing, while information on trends in the number of transactions and price changes may demonstrate the growing or declining attractiveness of areas. The research is based on a model of hedonic regression in the form of ordinary least squares (OLS), quantile regression (QR), and geographically weighted regression (GWR). The maps presented should increase the transparency of the residential market (e.g., by providing more detailed information). However, one should bear in mind the limitations in the use of these methods resulting from a small number of transactions in a thin market

Housing Preferences of Seniors and Pre-Senior Citizens in Poland—A Case Study

This article identifies and compares the housing preferences of seniors and pre-senior citizens in Poland. In addition, the attitude of residents of large cities in the Wielkopolskie Voivodeship towards senior citizens’ housing was determined. Surveys were conducted in the two largest cities of this region. The influence of the potential behaviors of this group of society on the development of housing was also examined. Results showed that differentiation of housing preferences was visible primarily when choosing the type of development and size of the dwelling. Seniors preferred smaller units in multi-family housing construction. Pre-senior citizens, on the other hand, were more likely to think about living in a single-family house. The location of a new dwelling was also important. Seniors, more often than people aged 50–59, chose a location in the city center. Pre-senior citizens, in contrast, more often decided to live in a rural area or outside the city center. Moreover, the attitude of seniors towards senior citizens’ housing is undecided, which may indicate that many people may change their housing preferences in the future and decide to move

A Generalised Model of Ground Lease Pricing

In this paper, we present a generalization of Mandell’s model for the estimation of ground lease pricing. We adjust the model so that it fits, in particular, the Polish legal regulations and situation of the Polish real estate market. The model involves two aspects. The first is the perpetual usufruct, a form of owning the ground similar to a long-term lease, but having some specific features. The second is allowing lease rent adjustments after some fixed period, meaning we consider the situation where the payments are fixed during certain periods as defined in the contract. The proposed model determines the minimum lease amount for the owner, which is the rate at which it is beneficial to lease the property, and the maximum for the lessee, which is the amount above which the lease is unprofitable for the leaseholder or perpetual usufruct

The impact of aircraft noise on housing prices in Poznan

In the paper, we analyzed the impact of aircraft noise on housing prices. We used a dataset containing geo-coded transactions for 1328 apartments and 438 single-family houses in the years 2010 to 2015 in Poznan. In this research, the hedonic method was used in OLS (ordinary least squares), WLS (weighted least squares), SAR (spatial autoregressive model) and SEM (spatial error model) models. We found strong evidence that aircraft noise is negatively linked with housing prices, which is in line with previous studies in other parts of the world. In our research, we managed to distinguish the influence of aircraft noise on different types of housing. The noise depreciation index value we found in our study was 0.87% in the case of single-family houses, and 0.57% regarding apartments. One of the reasons for the difference in the level of impact of aircraft noise may be the fact that the buyers of apartments may be less sensitive to aircraft noise than the buyers of single-family houses

The Impact of Aircraft Noise on Housing Prices in Poznan

In the paper, we analyzed the impact of aircraft noise on housing prices. We used a dataset containing geo-coded transactions for 1328 apartments and 438 single-family houses in the years 2010 to 2015 in Poznan. In this research, the hedonic method was used in OLS (ordinary least squares), WLS (weighted least squares), SAR (spatial autoregressive model) and SEM (spatial error model) models. We found strong evidence that aircraft noise is negatively linked with housing prices, which is in line with previous studies in other parts of the world. In our research, we managed to distinguish the influence of aircraft noise on different types of housing. The noise depreciation index value we found in our study was 0.87% in the case of single-family houses, and 0.57% regarding apartments. One of the reasons for the difference in the level of impact of aircraft noise may be the fact that the buyers of apartments may be less sensitive to aircraft noise than the buyers of single-family houses