Property markets with unrevealed prices: adaptive valuation procedures

Area 08 – Ingegneria civile e Architettura

The current property valuation practice takes into account methods based on historical data, known as Revealed Preference Techniques (RPTs), which make it possible to derive the preferences expressed by the actions of market subjects through authentic transactions. When operating in highly dynamic economic situations the reference to substitute methods that allow to come to reliable property valuations is generally allowed. In order to operate where it is not possible to rely on historical market data, the essay proposes to refer to the Stated Preference Techniques (SPTs), valuation approaches of an asset that are based on hypothetical markets through procedures allowing to detect the preferences stated by the buyers and the sellers. The resulting estimate has dynamic nature, in that it keeps account of the way human choices evolve. The study constitutes a contribution to improve the property appraisal based on subjects operating in hypothetical markets and the proposed procedures are a fundamental tool in urban requalification processes when operating in markets with unrevealed prices. It makes it possible to conceive different scenarios and forecast the values connected with the different project hypotheses. The adaptive either integrative valuation procedures experimented by Murro and their subsequent application represent an interesting starting point for further research developments.

SINTESI