Original scientific paper
https://doi.org/10.2478/otmcj-2019-0002
Market value of the view restriction
István Hajnal
; Department of Construction, Technology and Management, Faculty of Architecture, Budapest University of Technology and Economics, P.O.B. 91, H-1521, Budapest, Hungary
Abstract
Based on the international literature, the effect
of an existing panoramic view on the market value of properties
is positive and significant. This value-adding factor
varies by location and by type of view. In Central Europe,
no such evaluation study has been elaborated until now.
New building construction may restrict the existing panorama,
and this is the other side of the same phenomenon.
View restriction may result in stigmatization, which
is a negative effect on the property. There are two major
methodologies to observe the effect: revealed preference
method (RPM) and stated preference method (SPM). One
SPM approach is contingent valuation (CV), wherein
well-informed stakeholders give their opinion about the
impact caused by the investigated effect. The CV methodology,
using the Delphi approach, was employed to
observe the market value decrease in the cases of several
restricted panorama situations in Budapest. Based on
the research, this effect in Budapest is in line with the
published western results. The result of the study can be
used to support real estate developers and architects in
their development decisions. This is an extended version
of the article titled “The impact of view-restriction: a
Delphi case study from Budapest”, presented at Creative
Construction Conference 2018, CCC 2017, 30 June to 3 July
2018, Ljubljana, Slovenia.
Keywords
market value; panorama; view restriction; stigmatized property; Delphi method
Hrčak ID:
224584
URI
Publication date:
1.2.2019.
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