Analysis of the correlation between socio-economic development and land prices – a study of the Zagnańsk municipality

Abstract

The aim of the paper was to analyse the correlation between socio-economic development and the prices of undeveloped real estate, as illustrated with the example of the Zagnańsk municipality (Silesia province, Kielce district). The level of the municipality’s socio-economic development was evaluated using the zero unitarization method, by means of the normalization of 12 diagnostic variables. The analysis of unit prices of properties was performed on the basis of data from the register of property prices and values, obtained from the District Office (Starostwo Powiatowe) in Kielce. Classification of administrative units was performed using the typology method. In order to determine the correlation between the level of development, and the prices of property as well as features that describe the surveyed object, Pearson’s correlation coefficient (also referred to as Pearson’s r) was applied. It was demonstrated that improving the conditions of socio-economic development significantly affects the increase in the prices of undeveloped land.

Keywords

• socio-economic development
• real estate market
• land property
• correlation analysis
• typology