Ownership and Perpetual Usufruct in the Valuation of Undeveloped Real Property on the Example of Parallel Markets

Foryś, Iwona; Gaca, Radosław

doi:10.2478/foli-2018-0001

Cited by 3 publications

(2 citation statements)

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“…The relation between the values of the ownership title and perpetual usufruct in case of undeveloped grounds for single-family houses in case of Poland was investigated by Foryś and Gaca (2018). In their study, they used the transactions (131 observations) concluded between the years of 2013-2015 in two districts of Bydgoszcz.…”

Section: Literature Reviewmentioning

confidence: 99%

The effect of perpetual usufruct on single-family houses in Poznań

Trojanek¹,

Tanaś²,

Trojanek³

2019

Journal of International Studies

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The paper explores the influence of the perpetual usufruct (a form of owning the ground similar to a long-term lease in Poland) on house prices in Poznań. The research is based on a data set of 1074 geo-coded single-family houses 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 single-family houses constructed on perpetual usufruct lots are discounted on average at 4.1%.

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Section: Literature Reviewmentioning

confidence: 99%

The effect of perpetual usufruct on single-family houses in Poznań

Trojanek¹,

Tanaś²,

Trojanek³

2019

Journal of International Studies

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“…, 2014, p. 54). Perpetual usufruct rights (Foryś and Gaca, 2018) may cause additional uncertainty in real estate development in Poland. An alternative to ownership transfer, perpetual usufruct is the right to use the land for a period between 40 and 99 years.…”

Section: Introductionmentioning

confidence: 99%

Institutional factors and the timing of land development: a survival analysis applied to the GZM Metropolis in Poland

Reyman

Maier

2022

JERER

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PurposeThe purpose of the article is to improve the understanding of the role of institutional factors in real estate development. The authors take into account zoning (existence and type), type of right of disposal and type of buyer and seller of property in a multivariate econometric estimation. Dependent variable of the analysis is the time between acquisition of empty land and the application for a building permit, a period when many important development decisions have to be made. This indicator is closely related to debated phenomena like land hording and speculation.Design/methodology/approachThe authors estimate a Cox proportional hazard model with the time between acquisition and application for a building permit as dependent variable and institutional indicators and a number of control variables as explanatory variables. Study area is the GZM Metropolis in the South of Poland. This region shows enough variability in institutional arrangements to allow for this type of analysis.FindingsThe analysis shows that institutional factors significantly influence the real estate development process. In areas that have not issued a zoning plan, the period until the building permit application is significantly longer. When the state is involved in a transaction (as purchaser or seller), it also takes longer until the building permit application is submitted. Although the instrument is usually intended to speed up development, perpetual usufruct implies a longer period until building permit application. Because of the results the authors get for control variables and for robustness checks, the authors are confident of the results of the analysis.Originality/valueTo the authors’ knowledge, this is the first study that deals with the question how institutional factors influence the timing of real estate development. By using data for a region in Poland, the authors also add to knowledge about real estate development in CEE countries.

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