<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Seeing as how cities nowadays have to face many challenges (such as: urban traffic management, revitalization, and adaptation to climate change.), different kinds of urban policies and actions are undertaken. Many of these actions result in changes that influence real estate, mostly by improving the conditions of public services. However, implementation of such urban policies is connected with significant costs that have to be covered by public funds. Therefore, the question arises how we can analyze the assumed benefits from the increase of real estate value? Which tool could allow stakeholders to search for potential added value?</p><p>The aim of this paper is to present the methodological approach to improving the communication between stakeholders for the visualization of relations between public actions and potential benefits. The analyses cover benefits that can occur both in public and private budgets. The focal point of this paper is the presentation of causal loop diagrams as a tool that could be incorporated for public value identification on specific investments. The application of the suggested approach is visualized on two examples of urban redevelopment activities. Causal loop diagrams are prepared for the construction of a metro system and implementation of a water retention facility. The results show that both types of urban redevelopment actions have an impact on the creation of value, which can be observed both in public and private benefits. However, not all kinds of activities impact an increase in the market value of real estate and can be measured as incomes in budgets.</p></abstract>

Seeing as how cities nowadays have to face many challenges (such as: urban traffic management, revitalization, and adaptation to climate change.), different kinds of urban policies and actions are undertaken. Many of these actions result in changes that influence real estate, mostly by improving the conditions of public services. However, implementation of such urban policies is connected with significant costs that have to be covered by public funds. Therefore, the question arises how we can analyze the assumed benefits from the increase of real estate value? Which tool could allow stakeholders to search for potential added value?The aim of this paper is to present the methodological approach to improving the communication between stakeholders for the visualization of relations between public actions and potential benefits. The analyses cover benefits that can occur both in public and private budgets. The focal point of this paper is the presentation of causal loop diagrams as a tool that could be incorporated for public value identification on specific investments. The application of the suggested approach is visualized on two examples of urban redevelopment activities. Causal loop diagrams are prepared for the construction of a metro system and implementation of a water retention facility. The results show that both types of urban redevelopment actions have an impact on the creation of value, which can be observed both in public and private benefits. However, not all kinds of activities impact an increase in the market value of real estate and can be measured as incomes in budgets.

Hidden Public Value Identification of Real Estate Management Decisions

Wrocław University of Environmental and Life Sciences

University of the Federal Armed Forces Munich

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Hidden Public Value Identification of Real Estate Management Decisions"}

Seeing as how cities nowadays have to face many challenges (such as: urban traffic management, revitalization, and adaptation to climate change.), different...

Hidden Public Value Identification of Real Estate Management Decisions

Published Online: Dec 16, 2019

Page range: 96 - 104

DOI: https://doi.org/10.2478/remav-2019-0039

Keywords
public value, real estate market, urban design decisions, cause effect chain, causal loop diagram

© 2019 Jan K. Kazak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Hidden Public Value Identification of Real Estate Management Decisions

Published Online: Dec 16, 2019

Page range: 96 - 104

DOI: https://doi.org/10.2478/remav-2019-0039

Keywordspublic value, real estate market, urban design decisions, cause effect chain, causal loop diagram

© 2019 Jan K. Kazak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
public value, real estate market, urban design decisions, cause effect chain, causal loop diagram