Trends in real estate appraisal: An emerging context

This research investigates the residential real estate market in an emergent European country, Romania. Using data from approximately 300 sales transactions and another 300 nationally relevant rent transactions conducted between midyear 2010 and midyear 2011, the real estate market prices and rental prices have been processed using statistical techniques such as the General Linear Model, in order to identify the characteristics of properties with a significant influence over the analyzed context. The results show that heterogeneous real estate location related and physical characteristics such as type of real estate, existence of an elevator, thermal insulation, finishing works and floor area are significant variables that influence real estate prices in Romania. Moreover, the paper offers a database in the form of descriptive statistics for asset pricing, in this case residential single-family properties, the same as for the Gross Income Multiplier. This represents a starting point in developing a statistical basis on which future studies can attempt to explain the pricing differences observed in real estate. Key words: Emerging market, real estate, appraisal, influential factors.