Real Estate, Volume 1, Issue 2 (September 2024) – 3 articles

Historical buildings deserve preservation not only for their aesthetic features but also as guardians of cultural and spiritual values. This is now acknowledged by several international law norms. Nonetheless, the legal discourse about their preservation carries a set of problematic implications because it is hard to adopt regulations that combine protection, promotion and valorisation with economic investments and market strategies and with everyday urban life. This is particularly evident with regard to immovables located within historical cities or towns whose economy depends on marketing the cultural identity, authenticity and history of the place to outsiders. This paper highlights the approach adopted by the most relevant international legal instruments which focus on the protection of what belongs to the historical city’s cultural heritage as being of crucial significance for individuals and communities in relation to their cultural identity. In this perspective, the safeguard of historical buildings can be linked to the right of access to and enjoyment of cultural heritage: a specific human right recognized under international law. The issue at stake is how to comply with principles and rules of international law while at the same time respond to the needs of modern life and economy. This paper identifies the rules and principles of international law that have gained legal relevance and can provide valid tools to states and local administrations to implement and fulfil protectionist policies for historical buildings. Full article

This study addresses the scarcity of empirical findings on the determinants of discount rates in the Discounted Cash Flow (DCF) method, filling a crucial gap in the existing literature and enhancing the understanding of the valuation process from the perspectives of key stakeholders. Leveraging a unique dataset comprising market transactions enriched with expert-based valuation information, the study conducts a comprehensive counterfactual analysis of the fundamental determinants influencing both appraisal-based and transaction-based discount rates. The results reveal that appraisers and investors attribute different levels of importance to object-specific, locational, and macroeconomic variables. A type-specific analysis further reveals that locational and macroeconomic variables exert a greater influence on discount rates in the residential real estate segment. In contrast, object-specific characteristics hold significantly higher importance in explaining discount rates in the commercial real estate segment. Full article

Public Housing Companies (PHCs) play an important role in the Swedish housing market, with approximately 300 companies managing circa 802,000 dwellings. The public housing sector thereby represents almost 20 percent of the total housing stock in Sweden and half of the apartments that are available for rental. The purpose of this paper is to analyze the most important factors behind the profitability in Swedish PHCs between 2010 and 2019. The effects of internal growth, age, and capital structure in the PHCs are analyzed together with the effect of the growth of the local market, as well as local rent levels. Financial information for circa 300 PHCs in Sweden was gathered from annual reports published between 2010 to 2019. The financial information was analyzed using panel data analysis methods with several explanatory variables to explain the financial performance of the PHCs. The results from the analysis indicate a highly significant and positive relationship between the annual change in population, age, and profitability in the PHC. A highly significant and negative relationship was found between the PHC internal growth, capital structure, and profitability. The results showed no significant relationship between changes in income, rent levels, and profitability in Swedish PHC. Full article