What location attributes are the most important for market value?: Extraction of attributes from regression models

摘要

Purpose – The purpose of this paper is to extract the location attributes, which are the most important for market value of real estate in countries with well-developed markets. Design/methodology/approach – In this paper meta-analysis is applied for extraction of location attributes and the weights of their importance. The outcomes of existing regression models created in different countries mainly with a developed real estate market are used. A total of 81 models described in 39 sources are analysed. Findings – The paper finds that the lists of statistically significant location attributes, which influence market value, are obtained for different real estate types. The weights of attributes' relative influence are compared, where possible. Research limitations/implications – In the paper meta-analysis is also applied for a limited number of empirical studies. However, for land and residential real estate the number of sources is sufficient to make a substantiated conclusion. The application of the outlined location attributes is a subject for future research. Practical implications – The paper shows that the lists of important location attributes can be used for practical specification of the valuation models for urban land and other real estate in countries where the market is underdeveloped, to increase the degree of objectivity and market orientation. Originality/value – The paper is one of the few studies which synthesize the findings of existing regression models with respect to location attributes generally. The method of weights' estimation is original. The result of the paper has practical value for real estate valuation in countries with an underdeveloped market.