New Study Reveals Hidden Value Impacting Real Estate Market Prices
The study found that in addition to land and buildings, real estate value can also include an intangible asset called real estate goodwill. This goodwill is influenced by external factors like real estate market trends. The researchers used a regression model to show that factors like new real estate loans, construction permits, and real estate transactions impact real estate goodwill. This means that the value of a commercial property can be affected by more than just its physical components.