“Absorption” or “Carrying Capacity” of Areas – Assessment Methods on the Example of Detached Housing Real Estate

Iwona Foryś () and Kazak Jan ()
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Kazak Jan: Department of Spatial Economy, Wrocław University of Environmental and Life Sciences

Real Estate Management and Valuation, 2019, vol. 27, issue 2, 5-19

Abstract: The concept of market absorption and carrying capacity in economic terms are adequate to the real estate market, even though the legislator uses only the concept of the absorptive capacity of the area in the planning process. The aim of the study is to discuss the concept of carrying capacity and absorption of the real estate market in economic and planning terms as well as the application of conclusions from literature studies and determination of capacity and absorption on a specific selected local market.In the empirical part, a model of demand for space for detached housing development (market absorption) was built as a function of price, income and expenses for complementary goods.At the same time, as a complementary good for the purchase of land for the construction of a house, the purchase of a flat and purchase of a real estate built-up with a detached house were accepted. On the other hand, reference was made to absorption understood adequately to planning documents. It was discussed whether the concept, interpreted in two ways, leads to the absorption of the same area on the local market. The analysis uses data from the Register of Prices and Values of Starosty County Price and Value Register, planning documents as well as data resources on statistics, and public information and own research.

Keywords: real estate market; spatial planning; carrying capacity; absorption (search for similar items in EconPapers)
JEL-codes: R14 R52 R58 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:27:y:2019:i:2:p:5-19:n:1

DOI: 10.2478/remav-2019-0011

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