Search Results (6)

Drastic shifts in prices and housing market trends in recent years, representing shocks to the housing system, have led many residential developers to pause or cancel their projects. In the already heated housing markets of the Greater Toronto Area (GTA), these supply frictions can have ramifications for affordability. Our study formulates a standardized “proforma” model of the profitability of a hypothetical condominium project in the city of Toronto, Canada, scheduled between 2019 to 2023, to explore the combined effect of developers’ price expectations and market volatility on developers’ decisions. Using the proposed proforma, we first identify the key drivers of development decisions. We then evaluate the impact of the expectation formation of key factors influencing perceived development profitability, including construction costs, sales prices, and interest rates, on the financial feasibility of potential developments. The results highlight that boundedly rational expectations can cause variations in profitability perceptions and potentially reverse development decisions in volatile market conditions. Our results highlight the sources of risk and uncertainty in development decisions, facilitating the recognition of possible solutions to mitigate these risks and increase affordable housing supplies. The proposed model can also enhance the realism of decision models in agent-based representations of land and housing markets. Full article

Organizations in and associated with the real estate sector rely on a competent workforce capable of effectively managing sustainability practices. This study examined the alignment of sustainability-related qualifications between employers and individuals in the Swiss real estate-related job market. A comprehensive analysis was conducted on 600 job advertisements and 1520 personal profiles, employing a keyword-based search approach derived from sustainability definitions and contexts. The findings revealed that companies emphasized the importance of “sustainability” in their job advertisements, whereas employees rarely mentioned it in their profiles. Nevertheless, both employers and workers demonstrate a demand for expertise, competencies, and skills that contribute to fostering sustainability in the real estate domain. Noteworthy keywords encompassed digitalization, green buildings, economic thinking, creativity, and collaboration. To facilitate improved job matching between organizations and applicants and to ensure sustainable practices in the real estate sector, it is recommended that organizations integrate these suggested keywords in their job advertisements and that employees incorporate the corresponding keywords into their profiles. Furthermore, educational institutions can enhance their programs by incorporating these keywords and the proposed dimensions of sustainability into their educational frameworks. Full article

Although empirical studies show that different types of loans have different risks (moreover, consumer credit risk is higher compared to other types of loans), it is common to study the credit risk of the banking sector as a whole, or of an individual bank’s whole loan portfolio, and the macro-economic factors affecting it (without grouping them by type of loan). Thus, an analysis of the credit risk of the whole loan portfolio (measured by all non-performing loans) is insufficient. Therefore, the aim of this research is to identify the macroeconomic determinants of the consumer loan credit risk and quantitatively assess their impact in Central and Eastern European countries. After the analysis of scientific literature in the field of credit risk determinants, a detailed classification of factors influencing banking credit risk is proposed. The distinguishing feature of the classification is that the factors influencing credit risk are classified at five different levels; twelve groups of general macroeconomic conditions variables were selected as the potential factors of NPLs. This classification can be useful to better understand and investigate the factors influencing banking credit risk for the whole loan portfolio (in the same way as the factors that affect the credit risk of different types of loans, e.g., consumer loans). Using the methods of constant, fixed and random-effects panel analysis, simple OLS, least squares with breakpoints regression analysis and Markov regime-switching models, the impact of the macroeconomic variables from twelve separate groups is evaluated. The data from 11 CEE countries are used, and the period from 2008 to 2020 is covered. The results of this assessment reveal that in the group of CEE countries, such variables as GDP and labour market variables appeared to have contributed to the increase in the share of non-performing consumer loans, while inflation and real estate market variables were related to the decrease in consumer NPLs; at the same time, the impact of variables form other groups appeared to be mixed-nature or insignificant. The results of this research are useful in that they allow the identification of the most important determinants of consumer loan credit risk and thus allow making assumptions about NPL changes due to the changing macroeconomic situation. In the case of Lithuania, this kind of study (assessment of macroeconomic determinants of consumer loan credit risk) was conducted for the first time. Consumer loan credit risk assessment is especially relevant in an increasing interest rate environment, and deeper analysis can help banks and other financial institutions to manage credit risk. On the other hand, a better understanding of the main influencing factors of the macroeconomic environment can help central banks and other official institutions take appropriate monetary and fiscal policy decisions to ensure a good credit transmission channel for sustainable economic growth. Full article

This article aims to explore the political dilemmas of sustainable metropolitan development marked by intense tensions between ecology and economy within the context of neoliberal urban policies over the Case of Istanbul, Turkey. It investigates the re-scaling and centralization of the state in directing the investment capital and focuses on the ways in which it reregulates and loosens the institutions to create exceptionalities in order to realize mega projects. It examines Canal Istanbul and the “New City” or the Yenişehir Project, the so-called “crazy project” imposed upon the city by the central government, which presents a crucial case demonstrating the processes of creating exceptionalities and the erosion of public norms. Empirically, drawing from the Turkish experience through an in-depth analysis of policy documents, plans and reports prepared by a variety of agents, the article demonstrates and discusses different modalities of creating exceptions to capitalize on the lucrative real estate markets through mega projects in an increasingly authoritarian neoliberal context, its ramifications on the existing norms and the oppositions it raised. The article concludes with a discussion on how the new political climate that moved away from subsidiarity, transparency and democratic participation, and became increasingly centralized, created an impasse for planning and that neither the ecology nor the economy could be protected and enhanced. Although economic development discourse is used to legitimize these mega projects, it is obvious that they lead to an ecocide. Full article

Agricultural development is determined by various factors, such as environmental, economic, demographic, or social circumstances. In order to present the level of this development as com-prehensively as possible, a multidimensional analysis should be carried out with an appropriate methodology. In this article, a taxonomic approach known as the Hellwig’s method was used to determine the level of agricultural development. The area of research was the territory of Poland, divided into voivodships, which are the main units of the administrative division of the country. The development of agriculture thus determined was correlated with activities pursued by the National Agricultural Support Centre (NASC), an institution responsible for the management of agricultural real estate owned by the State Treasury in Poland. The results showed that the NASC’s activities are related to the level of agricultural development in every voivodship. The investigated model of rural space management was shown to be a rational one, performing well in today’s market conditions. The proposed methodology could adapt to similar situations and can be used in similar research on rural areas. Full article

Distinct from the existing literature, which mainly focuses on the impacts of green building practices on the owners’ benefits, this paper examines capital market participants’ perceptions of green building, specifically, the cost of equity capital. The study uses data regarding the United States Real Estate Investment Trusts (US REITs) from 2000 to 2016, employing a panel regression analysis and adopting a Price Earnings Growth (PEG) ratio model for the cost of equity capital estimation. We find a negative relationship between green building certification and the cost of equity capital. Our results encourage REITs to participate in green building certification and aim for higher green building rankings. In addition, we examine whether corporate governance could affect the intensity of green building practices in REITs. It is found that corporate governance practices implemented to align shareholders’ and managers’ interests, such as higher institutional holdings and a less dispersed ownership structure, positively impact firms’ resource allocation for green initiatives. The results suggest there could be mutual benefits for both economic profits and sustainable buildings. Full article