Original scientific paper
https://doi.org/10.1515/otmcj-2016-0025
Evaluation of stigmatized properties
István Hajnal
; Budapesti Muszaki es Gazdasagtudomanyi Egyetem, Budapest, Hungary
Abstract
Stigmatized property is real estate burdened
with an external negative effect. Individual cases are
spread along a broad spectrum, along many dimensions
that include the rational and the irrational, the acute and
the chronic. Examples for the stigmatizing effect are a
nearby airport, ground water contaminated by chemicals,
presence of a high-voltage power line, and so on. Evaluation
of these properties needs special methodology.
Stigma can reduce the property’s market value through a
particular, multi-layered filter. The author systematically
examines the professional literature’s cases of evaluation
of stigmatized properties. The research aims to organize
and compare the cases in order to calculate the market
value of stigmatized properties. Based on the analysis, six
significant dimensions are identified. A focus group of 19
experts examined and individually evaluated the stigmatizing
effects along these different dimensions. The author
suggests that it is possible to estimate the stigma’s effect
and compare different cases to one another effectively.
The results allow the international methodology of valuation
to be processed.
Keywords
real estate valuation; stigmatized property; market value
Hrčak ID:
198172
URI
Publication date:
30.1.2017.
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