Conceptual Approach to Studying Real Estate Market (as Illustrated by Krasnodar’s Real Estate Market)

Abstract

Absence of databases compiled during the real estate market analysis poses a substantial problem and questions the integrity and validity of evaluation appraisals. This study is relevant due to its formal approach towards analyzing the real estate market, the necessity to accumulate relevant data and price factors, and taking into consideration the objectives of the appraisal. Use of insufficient or irrelevant data from reports on market/cadastral value poses a significant problem, which hinders practical implementation of modern economic processes and influences purchase and sales prices of real estate, as well as its taxation during cadastral appraisal. The subject of this research is the real estate market of Krasnodar. The object of this research is the economic interaction taking place during construction, turnover, and development of real estate property. The authors have divided the territory of Krasnodar into zones and selected the most economically developed neighborhoods. These neighborhoods constituted the material of this study. The authors have also determined the pricing factors and their quantitative features. During this study, a database which may be used for real estate property appraisal has been created.