What Influences Land Prices? Econometric Analysis for Szczecin

Abstract The aim of the article is to construct an econometric model that will enable the estimation of the impact of real estate features on their unit price. For the purposes of the study, a database of transaction prices of undeveloped land properties for residential purposes was built (Szczecin, analysis period: 2020 – 2022). This database contains 428 transactions. Real estate features and their states were defined. The study also proposed an econometric method of determining the impact of location, which is based on adding 0 – 1 variables for individual housing estates to an appropriately specified model. The proposed approach can support property appraisers in the valuation process (e.g. in market analysis or when determining the weights of real estate features). The presented results and the proposed approach can also be used by analysts and real estate agents.