Purpose – the purpose of this study is to explore dependencies between non-built-up building plots and finished houses (both values refer to the same property). Both estimated values refer to one square metre of the usable area or land area, respectively.  Although dependencies between the two variables are clearly seen at once, the use of mathematical analysis and statistical surveying to explore relative behaviour of the variables allows us to develop a tool for initial identification of property under construction which, although being mediocre compared to the market offer, go beyond mid-market trends. The tool can be very helpful for any pre-assessment of security risks.

Approach/methodology – The research methodology consists of mathematical / statistical methods for analysing results of property appraisals performed to secure claims of bank lenders. The Spearman’s rank range test, Pearson test, and regression test of dependencies between variables have been performed.

Results – There is a strong dependency between the analysed variables. It is possible to show an area on the chart, which shows the house value range for the assumed value of land.

Innovation/value – The research constitutes an additional basis for market analysis. The research has been structured as a mathematical approach, based on unit real property values distributed independently of location. In addition, the research shows the soundness of the analysis of the extracted value of structures alone, indirectly based on market data (comparison of transactions in built-up properties and non-built-up properties).



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