The Aging of a Building Versus Its Life Cycle with Regards to Real Estate Appraisal

Podwórna Monika ()
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Podwórna Monika: Faculty of Civil Engineering, Wroclaw University of Science and Technology, Poland

Real Estate Management and Valuation, 2022, vol. 30, issue 2, 84-95

Abstract: Construction objects are subjected to aging processes and other changes and influences during their life cycle. The paper focuses on one of the stages of the life cycle of a developed property - the final part of the service life phase, which is referred to by the author as “the autumn years”. The paper analyses the problem of classifying a building object to an appropriate life cycle when conducting a real estate valuation. The author searched for the answers to the question of when the liquidation phase begins, because the decommissioning of a building affects the landscape and spatial heterogeneity. The reasons for demolishing buildings were analyzed, and are as follows: the poor technical condition of building objects; functional wear; difficulties in carrying out renovation or reconstruction works; and financial unprofitability, which takes into account the life phases of buildings. This paper aims to prove the following theses: -knowledge of the life cycle is the basis for the correct identification of a property’s condition, - the age of the elements of a building is not a fundamental quantity that determines the course of its physical depreciation, -the liquidation of a building has a big impact on ecological awareness.

Keywords: real estate market; life cycle; wear of a building object (search for similar items in EconPapers)
JEL-codes: C13 D46 E32 R00 R30 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:30:y:2022:i:2:p:86-97:n:8

DOI: 10.2478/remav-2022-0016

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