Dynamic approach to real estate ratings

Martin Schnauss and Patrick Spieler

ERES from European Real Estate Society (ERES)

Abstract: Holistic real estate strategies have to fulfill different interests and demands. Not only do qualitative and quantitative goals have to be reconciled, but also conflicting goals have to be resolved. This paper investigates how to create a real estate rating that captures the dynamic developments of real estate over its life cycle. A proprietary model is presented that is based on a dynamically evolving utility analysis and takes into account both changes in condition and the changing requirements of user groups. This dynamic model for a real estate rating therefore not only offers the possibility of depicting future developments of a property, but also has the potential to derive correspondingly comprehensible and needs-based real estate strategies. A dynamized utility analysis, especially in combination with a system dynamic modeling, offers the potential to develop needs-based real estate strategies over the entire life cycle of real estate. The developed model is applied to a simulation and evaluated by experts from the real estate industry. As a result, a needs-based real estate strategy is derived.

Keywords: Dynamic; Rating; real estate; Simulation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2023-01-01
New Economics Papers: this item is included in nep-upt and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2023-92 (text/html)
https://eres.architexturez.net/system/files/P_20230710181426_4417.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2023_92

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().