Search Results (137)

This study examines commercial real estate market dynamics and valuation performance using an applied panel-data econometric framework within the context of an emerging market economy. While traditional valuation approaches primarily emphasize static income–capitalization relationships, they often overlook the combined influence of liquidity conditions, market risk, and macroeconomic environment on commercial real estate performance. The empirical analysis is based on a balanced panel dataset of commercial properties in Azerbaijan covering the period 2021–2025. The dataset includes net operating income, capitalization rates, liquidity conditions, market risk indicators, and macroeconomic variables. A two-equation modelling framework is employed to separate valuation determinants from capitalization rate dynamics, thereby reducing potential endogeneity between property values and return expectations. The empirical findings indicate that net operating income is consistently and positively associated with commercial property values across the estimated panel-data models. In addition, the results suggest that market liquidity and market risk provide complementary information for understanding commercial real estate performance within the analyzed emerging market setting. Higher values of the risk index are positively associated with capitalization rates, while the estimated relationship between market risk and property value remains sensitive to model specification. Macroeconomic variables exhibit limited statistical significance and are interpreted primarily as indicators of common market-wide conditions. The study contributes to the literature by applying an integrated panel-data framework to an illustrative emerging market case (Azerbaijan) while providing a transparent empirical framework that may be adapted to comparable commercial real estate markets. Full article

We examine whether board activity (B_ACTIV), board size (B_SIZE), board independence (BIND), and board tenure (BOARD_TEN) are associated with the performance of South African real estate investment trusts (REITs) over the period 2013 to 2025. The REIT framework provides a rigorous setting to evaluate corporate governance theory, as statutory distribution mandates constrain payout discretion and contracted-income business models limit managerial opportunism, suggesting that governance effects concentrate within specific performance channels. We estimate dynamic panel models using a two-step system GMM framework with collapsed instruments, year fixed effects, Windmeijer-corrected standard errors, and firm-level controls for firm size (SIZE), leverage (LEV), and asset growth (GROWTH) to address endogeneity, unobserved heterogeneity, and performance persistence. We evaluate robustness through an endogenous-regressor specification, a bootstrap bias-corrected LSDVC estimator, and outlier-adjusted estimations. The sample comprises 30 JSE-listed REITs. We evaluate performance across funds from operations per share (FFO_PS), dividend yield (DIV_YIELD), return on assets (ROA), return on equity (ROE), return on invested capital (ROIC), and earnings per share (EPS). Our findings reveal that B_SIZE exhibits a statistically significant negative association with accounting profitability, where each additional director corresponds to a 1.0 percentage point reduction in ROE and a 0.32 percentage point reduction in ROA. The ROE effect remains robust across every identification strategy, including specifications treating board composition as endogenous and estimations winsorizing the dependent variables. Because firm SIZE remains statistically insignificant while LEV and GROWTH display their expected theoretical signs, the B_SIZE effect is isolated from firm scale. BIND demonstrates a directionally positive but specification-sensitive association with returns and payouts, whereas BOARD_TEN shows no robust association with any performance metric, and B_ACTIV effects attenuate once endogeneity is addressed. Overall, governance effects concentrate in operating efficiency and payout measures while remaining absent from per-share metrics, reflecting the precise channels through which boards exercise authority. Our findings caution against board expansion in this sector, highlight board scale as a transparent governance screen for investors, and demonstrate that meeting frequency and tenure benchmarks offer no reliable performance signal. Full article

Blockchain technology is very often presented as a promising solution for modernizing property registration, due to its characteristics of immutability, auditability, and traceability. However, the evolution of research in recent years shows that the initial technological enthusiasm has been followed by a more critical phase, in which the focus has shifted from abstract promises to the concrete conditions of legal, institutional, and operational integration. This article pursues two main objectives: (i) to present the current state of research regarding the use of blockchain in property registration systems and (ii) to identify the suitability of implementing such an infrastructure in Romania, by reference to the legal framework governing real estate registration, data protection requirements, and the current stage of digitalization of the National Agency of Cadastre and Land Registration (ANCPI). The study is qualitative, interdisciplinary, and evaluative in nature and is based on a set of sources such as scientific literature, institutional reports, case studies, and official normative sources. The analysis shows that international literature is dominated by prototypes and architectural models, while real-world implementations remain limited and, in all relevant cases, rely on permissioned and hybrid models, rather than fully decentralized public ledgers. For Romania, the article shows that the main barriers are not strictly technical, but legal–institutional: the legal recognition of distributed entries, the relationship with the function of the land book, the role of ANCPI, and compliance with GDPR. The conclusion of the research is that blockchain may be useful for cadastral records in Romania only within a complementary, phased, and institutionally controlled architecture, rather than as an immediate replacement for the current cadastral registration system. Full article

Increasingly stringent regulations regarding climate policy and the sustainable development paradigm determine the transformation of contemporary multi-family housing typology, manifested by a growing share of single-aspect micro-apartments (units with exterior exposure on only one facade). This article identifies the phenomenon of the energy-efficiency paradox, wherein highly insulated buildings successfully trap winter heat but inadvertently escalate summer cooling demands. Consequently, the primary operational challenge becomes limiting excessive solar heat gains in summer, which directly translates into high cooling energy demand, rather than solely mitigating heat losses in winter. Sustainable construction requires moving beyond the narrowly defined reduction of envelope thermal transmittance towards holistic adaptation to climate change and ensuring adequate indoor environmental quality. The methodology is based on a coupled energy-economic analysis, evaluating thermal balances and their direct financial implications for end-users. The variant analysis of solar heat gains conducted for a reference 30 m² dwelling in Warsaw proves that architectural optimization should not be determined solely by short-term investment profit maximization. Effective engineering optimization in construction requires the implementation of a full building life cycle perspective. Unfavorable glazing orientation and the lack of cross-ventilation necessitate the use of energy-intensive air-conditioning systems, which directly increases the building’s carbon footprint and generates hidden operating costs (differences reaching over 145 PLN annually for heating and approximately 70 PLN for cooling). The findings highlight the necessity for a critical reevaluation of design priorities for compact apartments, integrating social justice (by reducing information asymmetry in the real estate market, where buyers are often unaware of these future cooling burdens) with long-term economic rationality and the resilience of the built environment to extreme weather events. Full article

Understanding the pricing of climate risks in bond markets is relevant to financial stability. The real estate sector, characterized by geographically fixed and long-duration assets, exhibits high exposure to environmental shocks; yet, empirical matching between specific climate channels and real estate bond pricing remains sparse. This analysis examines the impact of climate risks on corporate bond credit spreads within the real estate sector by constructing three thematic indicators: transition risk (CTRI), chronic physical risk (ChroCPRI), and acute physical risk (AcuCPRI). Initial feature selection via machine learning suggests all three risk categories as predictive covariates for bond pricing. Subsequent regression estimations indicate that climate transition risk and acute physical risk expand credit spreads, whereas chronic physical risk compresses them—with these statistical patterns being more pronounced among state-owned enterprises (SOEs). Mechanism analyses yield threefold insights: first, transition risk elevates spreads by tightening financing constraints and restricting corporate asset growth, a channel concentrated in short-term tranches and low-liquidity firms; second, the counterintuitive spread-compressing effect of chronic risk is localized among firms with lower credit ratings and lower profitability, consistent with institutional climate support frameworks and strategic green adaptations; third, acute physical risk widens spreads by compressing operational cash flows and exacerbating financing friction, particularly for smaller enterprises. These channels align with the structural attributes of SOEs, which are characterized by larger asset scales, superior capital liquidity, and a higher propensity to secure state guarantees. Full article

A This study examines the interplay between environmental, social, and governance (ESG) practices, artificial intelligence (AI) adoption, and financial performance within Saudi Arabia’s financial sector. It investigates whether AI adoption moderates the ESG–performance relationship, reflecting the sector’s ongoing digital transformation under Vision 2030. Drawing on 224 firm-year observations across banks, diversified financials, real estate investment trusts (REITs), and insurance companies, the study employs content analysis of annual reports to identify AI implementation. Panel regression models are used to test the effects of ESG practices on both accounting-based (ROE) and market-based (Tobin’s Q) performance measures, while examining AI’s moderating role. The results reveal that ESG practices significantly enhance accounting-based performance, particularly return on equity, while board size exerts a positive and board independence a negative influence. However, ESG does not significantly affect market-based valuation (Tobin’s Q). Notably, AI adoption negatively moderates the ESG–financial performance link, suggesting short-term challenges in integrating digital transformation with sustainability strategies. This study contributes to literature in three key ways. First, it provides new evidence from financial institutions in a developing economy—Saudi Arabia—where ESG and AI integration remains underexplored. Second, unlike previous research that proxies AI adoption through R&D expenditure, this study captures actual deployment of AI tools in operational activities. Third, it extends the ESG–performance debate by introducing AI adoption as a novel moderating factor. The findings offer actionable insights for managers and policymakers in emerging markets, underscoring the importance of developing organizational capabilities that harmonize AI-driven innovation with ESG principles to foster sustainable long-term value creation. Full article

Large online marketplaces increasingly rely on multi-stage ranking pipelines where a learned relevance model is complemented by business-aware constraints such as contractual pacing, exposure caps and commercial alignment objectives. This paper develops a second-stage, contract-aware re-ranking layer for real-estate recommendation that explicitly balances user–item relevance with plan fulfillment, lead value and operational guardrails. The proposed multi-objective re-ranker (PMOR) combines a calibrated base relevance score with multiplicative business adjustments and subtractive penalties for approaching contractual caps and for within-slate similarity. The method supports heterogeneous settlement models, including pay-per-action and fixed-fee contracts, via contract-specific weights. Because the scoring function is deterministic and structured, it admits exact component-wise contribution analysis and counterfactual ablations without relying on surrogate explainability methods. Offline evaluation on production logs from an anonymized marketplace covers 4219 recommendation requests and 184,147 candidate items, joined with daily business snapshots using an as-of strategy to prevent look-ahead bias. Under a profit proxy based on effective lead value, position discounting and billability, PMOR achieves an indexed expected-revenue proxy of 487.4 (baseline = 100), corresponding to a lift of 387.4% over a model-only baseline and 48.4% over a legacy production re-ranker (LPR). The gain is primarily associated with improved billable exposure, increasing the share of billable positions in TOP-3 to 78.22% compared with 37.85% for LPR. We discuss parameter sensitivity, operational considerations and limitations of offline proxy objectives for deployment. Full article

Flooding poses a significant threat to commercial real estate investment, disrupting business operations, escalating maintenance costs, and heightening investment uncertainty, particularly in coastal and low-lying urban environments. This study examines the social dimensions of climate vulnerability by investigating how flood risk shapes stakeholders’ decisions to invest in commercial properties within flood-prone urban areas, with a focus on Lekki Phase 1, Lagos, Nigeria. A quantitative survey design was adopted. Data were collected from 87 commercial property investors through a structured questionnaire (FIIFRZQ) measured on a four-point Likert-type scale. The instrument demonstrated acceptable overall internal consistency (Cronbach’s α = 0.72), with subscale α values ranging from 0.62 to 0.81. Multiple regression analysis was used to assess the joint and individual contributions of seven factor categories (environmental, legal, economic, neighbourhood, structural, locational and behavioural) to investors’ willingness to invest in commercial property that is at risk of flooding. The seven predictors collectively explained 61.2% of the variance in investment willingness (R² = 0.612; F(7, 79) = 17.91; p < 0.001). Five factors, namely legal, environmental, structural, economic, and locational, were statistically significant contributors to investment willingness, while neighbourhood and behavioural factors were not. Johnson’s relative weights analysis confirmed legal and environmental considerations as the dominant drivers. The findings illuminate the interplay between climate vulnerability and investor behaviour in urban real estate markets, with actionable implications for policymakers, real estate practitioners, and investors navigating decision-making in flood-exposed urban environments. Full article

Due to the high population density and limited land availability in Bangkok, the capital of Thailand, land values have been increasing every year, posing challenges to sustainable housing development. Accurate land valuation is critical not only for investment decisions but also for promoting economic efficiency, social equity, and sustainable urban land use. Inaccurate analysis can lead to losses for real estate developers, project residents, and surrounding communities. However, this process requires extensive knowledge and experience. This research presents an approach for analyzing land values in Bangkok using Deep Learning techniques, which can help real estate developers assess appropriate land values more accurately and precisely. The study collected data on vacant land in Bangkok from an online feasibility study database and analyzed them using Deep Learning techniques. The results showed 30 determinants categorized into five groups. The study conducted 80 parameter adjustments with a ratio of 128:64:32 using a Quadratic Loss Function. The model was validated using k-fold cross-validation to ensure robustness and a Model Simulator operator to test sensitivity analysis. The Deep Learning model resulted in an R-square value of 0.917 and an RMSE of 2620 USD. The results of this research can be used as an effective decision-making tool for real estate developers, landowners, and brokers in determining appropriate buying or selling prices for land to support real estate sustainable development. Full article

This short communication synthesizes evidence on how the Ice, Cloud and Land Elevation Satellite-2 (ICESat-2) altimetry data are used by private sector actors and the implications for economic value creation. Using secondary research that collected and summarized information from existing data from reports, journals, websites, and databases, the work identifies 54 companies across 9 sectors leveraging ICESat-2-derived elevation, canopy height, bathymetry, and surface measurements to inform decision-making, risk assessment, and new business models. The analysis situates ICESat-2 within a broader context where freely available Earth observation data can generate substantial private- and public-sector value, potentially exceeding hundreds of billions in aggregate when scaled across industries such as geospatial services, climate management, real estate, and insurance. The paper uses a four-pillar conceptual model to guide valuation of data-driven impacts: Data Utility (intrinsic information value of altimetry and related metrics), Decision Impact (tangible economic benefits from improved models and operations), Strategic Integration (emergence of new business models and market opportunities), and Data Ecosystem Exclusivity (development of proprietary datasets and workflows that enable competitive differentiation). Empirical findings illustrate how these pillars manifest in practice. The paper seeks to connect private-sector uptake to NASA’s Earth Science to Action framework and related capacity-building efforts, highlighting pathways for broader utilization through training, tutorials, and accessible interfaces. Limitations of the study include partial sector coverage and reliance on publicly reported use cases. Future work should quantify economic returns with standardized metrics and extend the dataset to capture dynamic shifts in data products, governance, and IP development within the evolving data ecosystem. Full article

In this study, a generalized and advanced form of the near soft set theory (NST) framework is proposed for information aggregation (IA) processes. The primary motivation of the study is to address the lack of similarity-based uncertainty modeling in the literature by integrating the parametric structure of soft sets with the similarity-oriented structure of nearness approximation spaces. Within this framework, the AND-product and OR-product operations are introduced as the main methodological tools, and their algebraic structures are analyzed in detail. It is mathematically demonstrated that these operations satisfy fundamental properties such as idempotency, absorption, distributivity, and De Morgan identities. The principal original contribution of the study is the development of a novel Uni–Int-based decision-making mechanism that enables the systematic distinction between strong and acceptable alternatives. In addition, the boundary frequency indicator ($b_r$), which quantitatively evaluates the reliability of objects under perceptual uncertainty and is introduced for the first time in the literature, is proposed. The applicability of the proposed model is demonstrated through a real-estate selection problem, and a sensitivity analysis is conducted to reveal the determining effect of the nearness parameter r on decision granularity. The obtained findings indicate that the proposed NST framework provides a more flexible, more discriminative, and structurally robust decision-support model than classical approaches, particularly for similarity-based IA problems. Full article

The correct valuation of collateral supporting real estate loans has always been a key issue for the stability of the credit system. Substandard lending practices and the absence of uniform valuation approaches have historically contributed to the accumulation of non-performing loans. In recent years, several regulatory measures operating at both the European and national level have introduced principles, rules and procedures aimed at standardizing the valuation of properties pledged as collateral for credit exposures. These interventions seek to promote greater transparency, consistency, and prudence in property appraisals, thereby enhancing the soundness and resilience of the financial system. In January 2025, the updated Regulation (EU) 575/2013 came into force, incorporating the Basel III reform (also referred to as Basel 3+ or Basel IV). Among the innovations introduced, the concept of property value (PV) is particularly relevant, a prudential value that excludes expectations of price growth and considers the sustainability of the value over time in relation to the duration of the loan. PV is defined as a derived value with respect to market value (MV), determined by considering the main current and forward-looking risk factors that may arise during the life of the loan, including environmental, social and governance (ESG) risks, the intrinsic characteristics of the property and expectations regarding the economic cycle. This paper proposes a quantitative model for the determination of PV, applied to a practical case involving a residential property located in a medium-sized city in Italy’s Veneto region. The model adopts a deterministic and a probabilistic approach, the latter implemented through Monte Carlo simulation, which is indeed a generalization of the deterministic one. The model links the assessment of PV to the possible evolution of the property’s key parameters and the real estate cycle over the duration of the loan. It was tested under the assumption of a twenty-year mortgage originated in 2025 for the purchase of a residential property in Italy, considering two alternative locations: a suburban area and a city-centre area. The analysis conducted showed a substantially higher MV haircut for the suburban property compared with the central location. This difference reflects the fact that PV is less sensitive to real estate cycle fluctuations in more premium, central locations. Furthermore, the use of Monte Carlo simulation in the probabilistic approach enabled the calibration of the haircut according to a predefined confidence level, confirming the pattern observed in the deterministic framework. The combined evidence strengthens the empirical robustness of the model and highlights the importance of locational and cyclical dynamics in collateral valuation. Full article

In the context of a deep structural adjustment of China’s real estate sector and heightened macroeconomic uncertainty, quantitatively assessing the resilience of listed real estate enterprises is crucial for preventing systemic risk and promoting sustainable development. This paper proposes a multidimensional resilience evaluation framework for 37 Chinese A-share listed real estate firms using panel data from 2017–2024. An index system covering four dimensions—solvency and liquidity, profitability and cash flow, operational efficiency and asset structure, and growth and value—is constructed on the basis of financial ratios. The entropy-weighted TOPSIS method is employed to derive a composite resilience index, while principal component analysis (PCA) provides a complementary robustness check of the rankings. The empirical results indicate that (1) operational efficiency and asset structure receive the highest objective weight, followed by solvency and liquidity, whereas the weights of profitability, cash flow, and growth–value dimensions are relatively lower; at the indicator level, accounts receivable turnover, inventory turnover and the cash-to-short-term-debt ratio play a leading role, underscoring the central importance of liquidity safety and asset turnover under the “three red lines” regulatory regime. (2) Firms such as Shahe Co., Shenzhen, China, Huafa Co., Zhuhai, China and Wantong Development, Beijing, China exhibit persistently higher resilience scores, characterized by lower leverage, stronger cash buffers and faster operating turnover, whereas firms such as Yunnan Metropolitan Investment, Kunming, China, Greenland Holdings, Shanghai, China, Bright Real Estate, Shanghai, China and Rongsheng Development, Langfang, China remain at the lower tail of the resilience distribution with high leverage, tight liquidity and volatile profitability. (3) The resilience rankings obtained from entropy-weighted TOPSIS and PCA are positively and significantly correlated at the 1% level, suggesting a moderate level of consistency between distance-based and variance-based evaluation schemes. Building on these findings, this paper proposes resilience-oriented policy recommendations for regulators and managers in terms of differentiated prudential regulation, capital-structure and debt-maturity optimization, operational efficiency enhancement, and the integration of digital transformation and ESG governance. Full article

The digitisation of urban governance requires a context-sensitive method that balances operational efficiency, data security and transparency. This study proposes a context-sensitive QR code system as a conceptual framework for smart urban governance and real estate visualisation in Saudi Arabia, aligned with the strategic objectives of Vision 2030. Unlike traditional static QR code applications, the proposed system acts as a smart urban interface dynamically linking physical buildings to structured digital records and delivering role-specific information through a single scan. This system enables municipal authorities to retrieve compliance and regulatory data and allows emergency response teams to access real-time occupancy data with geographic coordinates. The proposed system enables visitors to explore curated heritage and site-based information, with each interface subject to policy-defined access rules. The proposed QR code system is evaluated by using a scenario-based computational simulation across three representative Saudi cities (Riyadh, Jeddah, and Dammam), and the results show that it significantly reduces service response time compared to manual processes while maintaining data integrity through role-based dynamic filtering. The proposed system enhances administrative efficiency and supports heritage preservation in sensitive areas such as the Al-Balad district in Jeddah city. By integrating governance, visualisation, and cultural sustainability within a simple, scalable and interactive model, the study provides an important framework for emerging smart cities in Saudi Arabia. Full article