Valentinas Navickas

School of Economics and Business, 

Kaunas University of Technology,

Lithuania

valentinas.navickas@ktu.lt

The influence of architecture on real estate market value: A methodological framework

Tomas Skripkiūnas

School of Economics and Business, 

Kaunas University of Technology,

Lithuania

tomas.skripkiunas@ktu.edu

Justyna Tanas

WSB University in Poznan,

Poland

justyna.tanas@wsb.poznan.pl

Maria Trojanek

Calisia University – Kalisz,

Poland

m.trojanek@akademiakaliska.edu.pl

Abstract. The built environment takes a core position between architectural professionals, economists, geographers, and other fields. The object of this research is the mechanism of value transfers between architectural objects and their market value. Architecture is the art and science of designing space from the macro level of urban planning, urban design, and landscape architecture to the micro level of construction details and, sometimes, furniture. Architectural variables in econometric models are used to identify spatial dependency, spillovers of value, externalities, links between ‘good’ architecture and market value, heritage aspects, contributions to sustainable development, and architecture as public good. While many studies have focused on the determinants of the real estate market value, the aim of this research is to capture the areas of influence of architectural variables on the market value of a property. To structure that influence, we analyzed the types of value a built environment can generate and the determinants of real estate market value. A mechanism of value transfers between architecture and the real estate market value is presented in a proposed framework. The implications of the framework and future research are discussed.

Received: January, 2020

1st Revision: September, 2020

Accepted: December, 2020

DOI: 10.14254/2071-8330.2020/13-4/3

JEL Classification: R31, R32, D46

Keywords: real estate market value, price determinants, architectural variables, externalities, methodology