Application of mathematical models and hierarchical relationships method of residential properties valuation in Bulgaria

¹ D. A. Tsenov Academy of Economics, 5250 Svishtov, Bulgaria
² St. Cyril and St. Methodius University of Veliko Tarnovo, Veliko Tarnovo 5003, Bulgaria

^* Corresponding author: m.petrova@ts.uni-vt.bg

Abstract

Green Deal and achieving its objectives require changes in the development of the construction and real estate operations sectors. There are many reasons, such as the depletion of natural resources, the transition to a circular economy, decarbonization, and the new tax policies. The transition to ecological construction with minimal energy losses and pollution also means higher construction prices. This goal requires compliance with environmental, social and governance (ESG) standards. This would lead not only to a review of the strategies that companies develop but also to a change in their valuation as a whole and the valuation of individual assets. Therefore, there is a constant need to search for opportunities to improve and obtain more accurate and reliable options in the field of business valuation theory in Bulgarian practice. The relationship, the dependence between the prices of residential properties and the factors that influence them, can be presented in mathematical models, and based on them, an indicative value can be derived.