An Assessment of the Impact of the Protection Zone Regime for Cultural Heritage Sites on the Value of Land for Individual Housing Construction in the Context of a Low-Activity Market

Abstract

The preservation of cultural heritage plays a key role in the development of society. To preserve cultural heritage, protection zones are established, which represent an encumbrance on land plots and, therefore, should be taken into account in the valuation process. Currently, there is a problem that mass (cadastral) and individual valuation methods do not necessarily include cultural heritage objects and their zones in cost coefficients. The absence of a mechanism to address their individual characteristics in the real estate valuation system has a significant impact on the value of real estate and leads to unjustifiably inflated market value and, as a consequence, to disputing the results of cadastral valuation. This article is devoted to determining the impact of protection zones of cultural heritage objects on the value of land intended for individual housing construction, using the example of the city of Orenburg. This article considers various methods of identifying patterns of the influence of zones with special conditions of use of the territory on the market value of land and substantiates the use of the method of comparative sales in the conditions of a low-active land market in Orenburg, a statistical analysis of market information, on the basis of which the type of activity of the real estate market in Orenburg was determined. The patterns of the calculation of corrections for the remoteness of the studied land plots from the objects of the transport and social infrastructure of Orenburg were revealed in this work as well. Through the method of paired sales within the framework of an individual assessment of the land plot intended for individual housing construction, the diminishing impact of the zones of protection of cultural heritage objects on the market value of land plots was revealed. This allows for conclusions to be drawn as to whether objects of cultural heritage have an impact on the value of real estate, and as a result, there is a need to modify the applied methods of mass and individual real estate valuation within the boundaries of historical settlements.