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1.1. Concepts "real estate" and «the inhabited real estate»: their evolution and structure

The real estate and the real estate market are objects of research of various sciences: economy, the rights, building business and so forth

Historically legal approaches to studying of the market of the inhabited real estate preceded the economic.

So, the concept "real estate" is known since times of Roman empire when lawyers have established necessity of division of all property on two categories: movable and real estate. The definitions formulated by them were still imperfect, but nevertheless reflected existing then the validity. «The Roman right considered as the real estate the ground areas, bowels, the earths and everything, that is created by another's work on the earth of the proprietor. The ground area was a main (basic) immovable thing. Everything, that was on the ground area, admitted a natural or artificial part of a surface of the earth — res soli. Everything, that has been connected with the earth or fundamentally fastened to its surface, was considered as a ground area component» [178]. Then the key rule of alienation of the real estate has been formulated

«superficies solo cedit — made over a surface follows a surface», different classifications of property are developed, some proprietary interests are formulated, questions on the property right were considered. Thus, the system of the rights created by Romans on real estate has been assumed further as a basis by working out of the legislation of the modern states with allowance for available historical preconditions.

In Russia the first prototypes of the inhabited real estate represented manors – allotments with the constructions, intended for residing, housekeeping, reception the income, etc. [177], belonging large

To the proprietor. In XIV – XVII centuries main forms of the land property become an ancestral lands and an estate. The ancestral lands is the ground possession descended which was granted sluzhilym to people on the basis of letters patents of the prince. Distinctive feature of this kind of the real estate consisted in granting of the rights of the order by property: sales, the lien, donation. An estate – ground possession which was granted on the terms of public service in time use, usually for life. Thus, it is possible to consider an ancestral lands as a prototype of the modern real estate which is in a private property; and an estate – a prototype of the modern real estate which is in the state or municipal property, but transmitted to private persons or under the agreement of social hiring or hiring of office premises [2, the item 100] (the house, apartment), or in the form of the office plot represented in gratuitous urgent use, to workers of the organisations of individual industries of economy [3, item 24, item 2] (ground area).

State regulation of the Russian market of the real estate has begun in XVI century Then for fulfilment of a purchase and sale transaction of manors the vulgar podjachie interrogated the parties and recorded in the Book of orders as which it is possible to consider as a prototype of the modern Uniform state register of the rights to real estate and bargains with it.

For the first time officially the concept of "real estate" of Russia has been entered Peter I by Decree «About an inheritance order in movable and immovable imushchestvah» from March, 23rd, 1714 which has balanced in the ancestral lands and estate rights.

Then formal "game rules" in the real estate market have been formulated: podjachie became the officials united in Chamber of serf affairs, under control to Justits-board; bargains were made with attraction of witnesses; at a competitiveness of the rights the property right arose at at whom the bill of sale was staree [177], etc.

The code of laws of Russian empire in 1832 prepared by the outstanding statesman by count M.M.Speranskim, despite lacking legislative definition of concept of the real estate, has made following additions to "game rules" in the real estate market:

1. The list imushchestv, recognised as the immovable was specified: besides the earths and houses the real estate factories, benches, and also railways (item 384 ch also admitted. 1 t. X). I.e. the enterprise as a whole as a property complex admitted the real estate (item 132 modern GKRF).

2. For the first time the legislator has paid attention not only on possessed within borders of the ground areas of a structure, but also a structure, water objects, roads, deposits of minerals, etc., having defined them as a real estate accessory (item 386, 387 ch. 1 t. X).

3. In this legal certificate methods and an acquisition order, and also strengthenings of the rights on property were in detail described: responsibility of the seller for defects of the sold manor was entered, the obligatory notarial certificate of bargains with real estate was entered, sale – a prototype of the modern preliminary agreement was entered, etc.

Thus, even before October revolution of 1917 basic "game rules" in the market of the real estate which have formed a basis of formation of the Russian market of the real estate in its modern have been mortgaged

Kind.

The Soviet period of history of the market of the inhabited real estate in Russia has begun with cancellation of the landowner landed property without the repayment the Decree of the Second All-Russia congress of Advices from October, 27th, 1917 «About the earth». Further on December, 14th, 1917 Decree VTSIK «About prohibition of real estate business» suspended all kinds of real estate business in cities, and on August, 20th

1918 g «About private property cancellation on the real estate in cities» the private property right was abolished by the new Decree «on structures

Certain cost or the yields possessed in cities with the population more of 30 thousand of persons »[177]. Accepted in 1922 GK RSFSR with private property cancellation on the earth abolished also division of property on movable and immovable therefore the market of the inhabited real estate in a habitual kind in Russia has ceased to exist, that, however, did not mean absence of a turn-over of those objects. The term"real estate"have replaced with such concepts, as: a fixed capital, an apartment house, apartment in an apartment house of housing building co-operative society of individual builders; their turn-over was carried out with serious restrictions under special rules.

In command-administrative economy in Russia in the primary market the large part of the inhabited real estate was distributed by the state while vozmezdnoe granting of housing accommodation at the expense of credits for building of individual apartment houses or apartments in housing - building co-operative societies (ZHSK) made no more than 8 %. It was thus observed normirovannoe distribution and an attachment of suppliers to consumers that involved distortion of the prices, deficiency, arrangement. On a secondary market exchange prevailed, that essentially narrowed possibilities of economic agents on satisfaction of their requirements.

As to intermediary activity in the market of the inhabited real estate rieltorskaja activity has arisen in pre-revolutionary Russia (realtors were called as brokers), but in days of the USSR the Office on a floor space exchange »could execute function of the intermediary only state«. Absence of possibility officially to register the activity promoted care of private intermediaries in shadow sector of economy.

In restoration the modern market of the inhabited real estate XX century starts to develop in Russia of market relations in the early nineties. According to G.M.Sternika, «it is necessary to consider as the Starting point of its development

1990 when "the Law on the property in the USSR" recognised concept private

Properties, which in further (the Ground code of RSFSR of 1991, the Civil code of the Russian Federation of 1994, the Town-planning code of the Russian Federation of 1998) has been legislatively issued and for the ground areas, buildings and structures and their isolated parts – premises »[152]. The first stage was formation of the natural market: relations between participants are not issued, have chaotic character, the culture of business dealing is not generated yet, the offer defines demand. At the second stage the legislative base forming game rules that involves on the market of new sellers and investors starts to be mortgaged; hypothecary crediting that causes a sharp rise in prices develops. Now the Russian market of the inhabited real estate worries the third stage of the development for which improvement of quality of knowledge of the buyer about the market and the goods on it is characteristic, demand defines the offer.

According to the modern Russian legislation, namely the article

130 Civil codes of the Russian Federation, accepted in 1994, «to immovable things (real estate, the real estate) concern the ground areas, plots of bowels and everything, that is strongly connected with the earth, that is the objects, which moving without a disproportionate damage it is impossible for their appointment, including buildings, structures, objects of not complete building. Subjects of the state registration concern immovable things air and marine vessels, vessels of internal swimming, space objects» [1] also.

Now in the English-speaking countries the term "real estate"

Has two significances, used proceeding from a context:

1. Real Estate - a literal translation «real motionless object» (that is a physical substance);

2. Real Property – a literal translation «the real property» (that is a title of the property rights to physical object).

In the international practice the physical object of "real estate" is usually considered as the complex object representing the sum of four components:

1. The ground area.

2. Objects over a plot.

3. Natural resources under a plot.

4. Air spaces over a plot.

Real estate research as title of the property rights to this complex object pulls together the legal approach with neoinstitutsionalnym the approach to the property in an economic theory.

In Russia all objects of the real estate on the origin and character of use are divided into the ground areas, the inhabited and uninhabited real estate. Objects of the inhabited real estate according to the Housing code of the Russian Federation the isolated premises, being real estate and suitable for constant residing of people as answers the established sanitary both technical rules and norms, other requests of the legislation [2, item 15, item 2] admit.

Kinds of objects of the inhabited real estate:

1. The apartment house (or its part) is the individually-defined building consisting of rooms and premises of auxiliary use, intended for satisfaction users of the household and other needs connected with their residing in such building;

2. The apartment (or its part) is structurally isolated premise in an apartment house in which there is a possibility of direct access to premises of the general use in such house. It consists of one or several rooms and premises of auxiliary use which are intended for satisfaction by users of the household and other needs connected with their residing in such isolated premise;

3. The room is a part of an apartment house or apartment which is intended for use as a place of direct residing of people in an apartment house or apartment [2, item 16].

Investigating object of the real estate from an item of a title of ownership, it is necessary to consider, that in an economic theory two basic approaches to property studying compete. According to the Marxist approach (representatives – K.Marx, F.Engels, K.Kautsky, V.I.Lenin, etc.), the property represents system of relations between economic subjects (to be exact, between classes) concerning creation, distribution and assignment of the blessings. K.Marx also has developed the theory of the ground rent of D.Rikardo which can be suitable for an explanation of functioning of the market of housing accommodation. As the object of the real estate housing accommodation has some general properties with the ground area: durability, ability to bring (made) rent and so forth

The private property on the earth, on Marx, is the reason of occurrence of the absolute rent, and the difference in natural and artificial fertility of soil is the reason of the differential rent I and II sorts, accordingly. Thanks to a private property on the earth and limitations of the ground areas the proprietor of the earth has an opportunity to arrive at a price above average and to keep this monopoly price, receiving the absolute rent. The differential rent, according to K.Marx's theory, arises as a difference between a cost price of production on the worst soil and a cost price on the best soils.

Applying K.Marx's theory to the market of the inhabited real estate, it is possible to notice, that, owing to limitation of the ground resources represented for building of housing accommodation, the firms attending to erection of housing accommodation, receive the absolute rent. At the same time allocated plots have various properties which influence both cost (expenses), and for value (utility) of object of the inhabited real estate. Plots can differ with the sizes of investments in the earth for their reduction to a condition at which building is possible: relief alignment, assignment of subsoil waters, leading of communications, building of roads, an accomplishment, etc. (a wasteful method of valuation). Plots also differ with a site (an estimation from the point of view of utility).

According to neoinstitutsionalnomu to the approach (R.Kouz, A.Alchian, G.Demsets, J.Bartsel), relations, and the property rights are investigated not. The property rights include a bunch of competences and arising in this connection responsibility. The property rights can be split between subjects: so, for example, the state possesses the complete sovereignty over navigating air space of the country; the rights to underground mineral resources too, as a rule, belong to the state. However, the more the quantity of restrictions (servitutov) is present at the property rights, the more low value of object of the real estate (blessing), and, hence, more low demand for it and its price, and on the contrary. Than more accurate are the property rights – that more low transaktsionnye costs of market interaction and above probability of optimum distribution of resources. Thus, it agree neoinstitutsionalnomu to the approach, the property rights are one of game key rules in economic system, and it concerns also separate lines of business and the separate markets, in particular, the housing accommodation market.

In neoinstitutsionalizme, in O.Uiljamsona, K.Menara's works, J. Akerlofa, etc., besides the theory of the property rights, theories of contracts, asymmetries of the information, pre-contract and postcontract opportunism which can be quite applied at the analysis institutsionalnyh mechanisms of functioning of the market of the inhabited real estate developed. In neoinstitutsionalizme functioning of this or that market is considered from the point of view of the established game rules, and the legal and economic approach mutually supplement one another.

In works of a neoclassical direction of economic thought bases of market behaviour of manufacturers and consumers, functioning of the competitive and not competitive markets which allow to investigate the housing accommodation market are mortgaged. So, in works of representatives of the Austrian school of K.Mengera and E.Bem-Baverka the concept of the capital blessings, the theory vmenenija developed, allowing to understand mechanisms

Pricings in the markets of assets of long use (to which category it is possible to carry and the inhabited real estate). Representatives of a neoclassical direction of K.Menger, U.Dzhevons, J. B.Clark, A.Marshall, A.S.Pigu, V.Valras, I.Fisher, etc. have created theories of a spending pattern, behaviour of firm, a market equilibrium (demand, offers, elasticity, types of market structures, consequences of state regulation of the markets) which will be used more low for the analysis of the market of the inhabited real estate of Russia.

The neoclassical direction of economic thought describes process of market pricing which is characteristic for the primary market of the inhabited real estate. A.Marshalla's position about «two edges of scissors» considers a market price as result of crossing of the demand price defined by limiting utility, and an ask price defined by incremental costs. With reference to the primary market of housing accommodation the given model of formation of a market price represents the compromise between interests of the buyer (domohozjajstva), expressed in the form of a ceiling price whom he is ready to pay for each additional unit of a floor space or other not quantitative factor (individual preferences), and the interests of the seller (civil engineering firm) expressed in the form of a floor price for which it can realise housing accommodation under condition of cover of expenses for its erection.

Within the limits of a neoclassical direction of economic thought the inhabited real estate can be considered as the blessing and as a resource, that is an income source. This blessing is:

· material as has the material, tangible form;

· economic as requires expenses or certain efforts to its creation or acquisition and the further contents;

· consumer as it is used for personal consumption;

· private, though its separate components can have signs collective (or club) the blessings.

However variants when the object of the inhabited real estate is not consumer, but the capital blessing are possible: for example, at housing accommodation purchase on purpose further to resell it at higher price this consumer blessing it is possible to consider as a source of the single income, and at housing accommodation delivery on hire basis it is possible to consider it as the time rent.

The object of the inhabited real estate as the blessing is subjectively evaluated by the consumer, that is has for it certain utility. From the point of view ordinalistskoj consumer choice theories, it is impossible to measure utility, but it is possible to define a place of the given blessing (in our case of housing accommodation) in the general structure of requirements of the person [101, t. 1, with. 120]. It can be made also on the basis of hierarchical model of requirements of the person, offered by the American psychologist A.Maslou. As the abstract physiological requirement for dwelling is expressed in sensation of feeling of discomfort at its absence, actually it is need. In that case it concerns the lowest levels of structure of requirements of A.Maslou. If to consider object of the inhabited real estate as requirement which accepts the specific form corresponding to possibilities of the market, to cultural level and the social status of the person then the housing accommodation can satisfy not only biological, but social requirements.

Let's apply five basic levels of the human requirements allocated with A.Maslou [109], to an explanation of useful properties of object of the inhabited real estate:

1. Physiological requirements - supply preservation of a physical condition of the person, are caused by necessity of maintenance of ability to live:

Requirement for food: the housing accommodation is a place of storage of the foodstuff, and also preparations and the meal uses for what separate parts of premises (kitchen, table) can be taken away.

Requirement for water which serves as means of a satisfying of such physiological requirement as thirst, and for maintenance of hygiene and

Protection against diseases: the modern housing accommodation also provides availability of a source of water (waterpipe), system of the water removal, a separate premise for acceptance of water procedures (toilet and bathing rooms, pool, etc.);

The Requirement for comfort represents organisation possibility in premises of a desirable temperature, sound and light mode, a mode of humidity and cleanliness of air, selection and convenience of an arrangement of subjects of a life and so forth;

Requirement for rest: the housing accommodation serves as a place for the pastime which purpose is restoration of forces and achievement of an efficient condition of an organism. For different stages of rest of the person separate zones or premises of object of the inhabited real estate can be taken away: the sleeping zone is intended for passage of stages of weariness, a relaxation and restoration of forces; and in a stage of entertainment of employment during rest can be the diversified depending on individual preferences (a drawing room, library, a sports hall, etc.) is already concerns more high levels of requirements for hierarchy Maslou;

The Requirement throughout a sort provides availability of the additional area of the premises necessary and sufficient for maintenance of normal satisfaction of physiological requirements of each member of a family (for example, availability of a children's room).

2. Requirements for safety include requirements for protection against physical and psychological dangers from world around and reliance that physiological requirements will be satisfied in the future:

Requirement for protection – traditionally the housing accommodation represented shelter not only from adverse weather conditions, but also served as protection against predators, enemies and so forth;

Requirement for stability and independence; to freedom for fear, alarm and chaos. Own housing accommodation – «the house» in understanding of the person associates with a certain stability of existence of a present order

Things, reliance of tomorrow, some kind of the warranty of the supplied old age etc.;

Requirement for structure, order, the law and restrictions. On the basis of a residence the registration account which is necessary for the citizen of the Russian Federation for the admission to the various blessings is made: the free education and public health services, social warranties, etc. though practice shows, that institute of the account of citizens becomes simpler and becomes demokratichnee. Also the modern legislation guarantees inviolability of dwelling, protection of the right of a private property on the earth, regulates public and private servituty – rights of use of another's object of real estate etc.;

3. Requirements for an accessory and love (social requirements or requirements for participation) include:

The Feeling of an accessory to what or to someone – means availability of valuable and emotional significance, attachment to the place of dwelling – to the house of which constantly think and where aspire to return. The object of the inhabited real estate is a material basis of existence of institute of a family.

Feeling, that you are accepted by others, feelings of social interaction, attachment and support. In a multiroom apartment house or the cottage settlement consisting of individual apartment houses, special  environment a generality of the tenants united by the general interests, requirements, preferences other is formed

Information need. In the conditions of absence of nervous signals the nervous fabric degrades, the mentality is upset, therefore the design of any premises provides possibilities of communication with world around: window designs, doors, technical communication devices (phone, the Internet, the on-door speakerphone, TV), the mail box etc., and also in premises occurs dialogue with members of a family and other members of community.

4. Requirements for a recognition include:

Requirements for self-esteem, personal achievements, competence, independence. Beautiful and arranged well pridomovaja territory, the big area and a non-standard lay-out, special architectural style of a building, ecological compatibility of area, reliability of protection – all these making blessings allow the consumer to feel the successful and self-sufficient person.

Requirements for respect from associates, a recognition. For example, inhabitants of club houses are exacting to a choice of neighbours, therefore choose objects of the inhabited real estate with specially created social environment.

5. The requirement for self-actualisation includes requirements for realisation of the uniqueness, the potential possibilities and growth as persons; it is requirement to do that is pleasant and to what there are abilities and talents. For example, the availability of a house sports hall allows to realise the ambitions that who cares of the health and aspires to beauty ideals; the house office (library) is intended for realisation of business conversations and meetings in informal conditions, and also for a solitude at hard work fulfilment; the house sound department helps to be realised to musicians, composers, arrangers. To each of these premises possessed in borders of object of the inhabited real estate, certain demands which allow to combine harmoniously the modes of operation and rest are made.

The inhabited real estate has characteristics of the complex blessing including as premises (its internal and external characteristics), and an individual infrastructure of the house (availability of parking place, protection, the independent engineering equipment), a site, surrounding social environment, ecological compatibility, level of safety of district and other quality performances of object of the inhabited real estate.

Also the housing accommodation can be carried to the category of the normal blessings (the highest category blessings, unlike inferiornyh the blessings), for which at consumption increase (that is growth of quantity of square metres of the area of premises) limiting utility till some moment increases. However, since some moment, in action the law of decreasing limiting utility enters – limiting utility of additional metres decreases. According to an economic theory, limiting utility of object of the inhabited real estate defines the price which the consumer agrees to pay for each next unit of the blessing.

In an economic theory ordinalistsky the approach considers a consumer choice as the process, passing three stages:

1) the account of consumer preferences;

2) the account of budget constraints;

3) a definitive choice by combination of desires and possibilities.

That is process of decision-making for any buyer (a family – housekeeping) begins with consideration of its desires (sensation of need, revealing of requirements) which can be described conditionally by means of indifference curves. It means, that the same consumption level it is possible to reach by means of various consumer sets. However the buyer, according to K.Lankastera's [89] theory, will evaluate the subjective interest to separate characteristics of chosen objects of the inhabited real estate, and already then will evaluate the possibilities of acquisition wished. Having combined desires with possibilities, it agree ordinalistskomu to the approach, it makes an optimum choice.

In kardinalistskom the approach the buyer makes a choice within the limited sum of money in favour of that object of the inhabited real estate which will bring the maximum total utility. For example, the family with two children, having the limited budget of purchase of object of the real estate, considering the individual preferences, can choose from following variants with an equal market value: the two-room

Apartment in the central part of a city or area near to a good traffic intersection, with the best educational and medical institutions in step-by-step availability or multiroom apartment on suburb of a city or an individual apartment house with auxiliary premises and the ground area in area. The optimum consumer set in a considered example is presented in the form of a combination of two blessings: the areas (including quantity of rooms and other auxiliary premises) and sites (not extreme floors, not face apartments, affinity to objects of an infrastructure, etc.) object of the inhabited real estate.

Besides, optimum consumption of this or that blessing in terms of the neoclassical theory is defined by equality of the limiting utility evaluated in money terms, and incremental costs. Costs include costs for housing accommodation purchase, registration of the property rights, and also the costs connected with use of the inhabited real estate. Last consist of two parts:

1. The costs connected with maintenance (realisation and protection) the property rights: tax payment, insurance, etc.;

2. The proprietor bears the burden of care and care of property: the premises are necessary for keeping clean, to supply certain temperature range, to repair, ensure safety etc.

In this case each domohozjajstvo, acting rationally, chooses for itself optimum volume of consumption of the blessing «the inhabited real estate». As the resource housing accommodation can bring the made rent (at its use for personal needs), a speculative gain (at resale) or a rent (at leasing). Having investigated features of the inhabited real estate as blessing and a resource, we will pass to the analysis of the market of the inhabited real estate.

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A source: Shulepnikova Evgenia Alexandrovna. Modern mechanisms of functioning of the residential real estate market of the Russian Federation. Thesis for the degree of candidate of economic sciences. St. Petersburg, 2014. 2014

More on topic 1.1. Concepts "real estate" and «the inhabited real estate»: their evolution and structure:

  1. 1.1. The essence of the real estate and hierarchy of concepts of the market of the real estate
  2. 1.2. The market of the inhabited real estate: definition, functions, subjects and structure
  3. transaktsionnye costs in the market of the inhabited real estate
  4. 2.2.2. Interrelation of the market of the inhabited real estate of the Russian Federation with the real capital market
  5. 3.2. Regulation of quality of objects of the inhabited real estate
  6. 1.3. Features of formation of a supply and demand in the market of the inhabited real estate
  7. 2.2.3. Communication of the market of the inhabited real estate of the Russian Federation with the financial markets
  8. Illegal economy of the inhabited real estate
  9. 2.2. Interrelation of the market of the inhabited real estate of the Russian Federation with other markets
  10. Features of transaction in the market of the inhabited real estate
  11. Panova Anna Vladimirovna. STRUCTURAL SHIFTS of FOREIGN INVESTMENT IN the REAL ESTATE MARKET (ON the EXAMPLE of the MARKET of the HOTEL REAL ESTATE), 2009
  12. 2.1. The State of the art and tendencies of development of the Russian market of the inhabited real estate
  13. 3.1. The general approaches to state regulation of the market of the inhabited real estate in the Russian Federation and its defects
  14. 1.1. The basic economic and legal concepts of the mortgage and a real estate
  15. Chapter 2. The analysis of the market of the inhabited real estate of the Russian Federation
  16. 1.4. Identification of types of market market organisations of the inhabited real estate
  17. 1.3.3. The Market equilibrium and especial mechanisms of its establishment for various market segments of the inhabited real estate
  18. Chapter 1. Theoretical and methodological approaches to research of the market of the inhabited real estate