Radosław Trojanek

Poznań University of Economics and Business,

Poznań, Poland

radoslaw.trojanek@ue.poznan.pl

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

Justyna Tanaś

University of Gdańsk,

Gdańsk, Poland

justyna.tanas@ug.edu.pl

Maria Trojanek

WSB University in Poznań,

Poznań, Poland

maria.trojanek@wsb.poznan.pl

Abstract. 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%.

Received: March, 2019

1st Revision: May, 2019

Accepted: September, 2019

DOI: 10.14254/2071-8330.2019/12-3/17

JEL Classification: R31

Keywords: ground lease, perpetual usufruct, house prices