REAL ESTATE MARKET RATING – NEED OR NECESSITY?

Rating systems developed in Poland and other countries are generally used to evaluate the performance of businesses, organizations, institutions and even entire economies. Comprehensive solutions for assessing real estate markets and individual properties have never been proposed (several systems for evaluating mostly commercial real estate have been developed). This deficiency could be attributed to an absence of databases describing the real estate market and market changes as well as a shortage of coherent methods for analyzing real estate markets. In most cases, however, market phenomena may be difficult to classify because they involve behavioral, social and stochastic elements.

This article analyzes the existing systems for rating and ranking markets in different Polish regions and cities. They were compared with information about the classification of real estate markets on the example of selected property markets in Poland. Selected categories were evaluated to determine whether rating methods for real estate markets, including housing markets, should be developed for different Polish cities and regions. The growth potential of local real estate markets was also analyzed.