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

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 Received: January, 2020 1st Revision: September, 2020 Accepted: December, 2020 DOI: 10.14254/20718330.2020/13-4/3 Journal of International Studies S ci en ti fi c P a pe rs © Foundation of International Studies, 2020 © CSR, 2020 Valentinas Navickas, Tomas Skripkiūnas, Justyna Tanas, Maria Trojanek The influence of architecture on real estate market value: A methodological framework 39 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.