Bìznes Inform (Nov 2018)
The Institutional Basis for Efficient Functioning of Real Estate Market in the Global Space
Abstract
The systemic approach to analysis of structural dynamics, vector megatrends of development and diversification of the global real estate market actualizes the issue of disclosure of its institutional nature. Characterizing the institute of property, one should note its decisive role in the materialization of world-wide dominating private ownership of land and real estate, the processes of functional zoning of land plots, and the implementation of mechanisms for efficient valuation of property for tax purposes. If one characterizes the institute of pricing, it should be noted that it has a significant direct impact on the distribution of production resources in the real estate market. As international practice shows, nowadays mass and individual methods of valuation are the most often used methods in estimation of the values of real estate objects. On the other hand, it should be remembered about the valuation of real estate objects, which can be carried out on the basis of cost, comparative, and profitable methods. An efficient functioning of the real estate market is impossible without the existence of an extensive system of its instituts, forming its infrastructure support.
