Estimative analysis of a segment of the bare ownership market of residential property

Abstract

Estimative analysis of the property market aims to identify the parameters, economic variables and mechanisms at the basis of negotiations that take place in the market. The aims are explanatory and predictive. In this work, a multiple regression analysis is carried out to evaluate a segment of the bare ownership market of residential properties in a district of an Italian city. In particular, using regression, the explanatory variables in the price of the bare ownership are selected among those initially identified with the empirical observation of this phenomenon, the hedonic prices and weights of the explanatory variables are estimated, the estimation function of the bare ownership price is specified as well as the average depreciation rate determined by the usufruct. The discrepancy between the depreciation rates estimated with the regression and those set out by the law for tax purposes, but applied when estimating the bare ownership value, leads to distrusting the practical use of the latter in matters other than tax purposes. © 2013 Springer-Verlag Berlin Heidelberg.