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Real estate market fluctuations
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Fluctuations in the real estate market require informed decisions that consider both quantitative and qualitative factors to minimise risks and seize opportunities.
Consideration of the societal impact (Third Mission) and the integration of qualitative criteria in property valuation are crucial for sustainable and future-oriented investments.
Leverage the expertise of Auctoa with AI-powered valuation platforms to optimise market analyses and potentially increase your returns by up to 2% per year.
The current real estate market fluctuations present significant challenges for investors, owners, and buyers. To succeed in these uncertain times, it is crucial to understand market dynamics and make informed decisions. This article provides you with a comprehensive overview of the current challenges and opportunities, showing you how to protect yourself from risks and take advantage of the best opportunities. We analyse the research assessment and its impact on the market to offer you a holistic perspective.
Our aim is to equip you with the necessary knowledge to make the most of qualitative and quantitative assessments. We show you how to develop the right strategies to succeed in any market condition. Leverage our expertise to achieve your real estate goals and secure your portfolio.
Do you want to gain a better understanding of the current real estate market fluctuations and optimise your property strategy? Discover our comprehensive solutions for the real estate market and benefit from our expertise. We support you in making informed decisions and achieving your goals.
The evaluation of research is undergoing a fundamental transformation. Traditionally, the focus was on publication numbers and third-party funding, but now qualitative criteria and the societal impact of research projects are increasingly coming to the forefront. This paradigm shift is reflected in initiatives such as CoARA and DORA, which seek a comprehensive reform of research evaluation.
A central aspect of this development is the shift away from using the Journal Impact Factor (JIF) as the sole quality standard. Instead, diverse research achievements are to be recognized and qualitative assessments strengthened. The HRK is committed via the National CoARA Contact Point to these reforms and is working towards broad acceptance within the German research landscape. This shift towards greater consideration of the Third Mission is crucial to making the societal value of research visible and promoting it.
The emphasis on the Third Mission, that is, the societal impact of research, is gaining increasing importance. This requires new approaches to evaluation that go beyond traditional metrics and measure the actual impact of research on society. Integrating qualitative criteria and recognizing diverse research achievements are essential to comprehensively capture and promote the value of research.
Some universities and research institutions are already taking the lead with innovative evaluation approaches. For instance, Darmstadt University of Applied Sciences is actively committed to recognising diverse research achievements and places less emphasis on quantitative metrics. This allows for broader recognition of research results that do not necessarily appear in high-ranking publications.
There are interesting examples to be found internationally as well. Italy and Spain demonstrate how the Third Mission and transfer activities can be successfully evaluated. These countries provide valuable insights for the further development of research evaluation in Germany. It is important to learn from these best practices and adapt them to the specific conditions of the German academic system.
The integration of qualitative criteria and the recognition of the Third Mission require a move away from purely quantitative metrics. Instead, new evaluation approaches need to be developed to account for the diverse contributions of research to society. This necessitates close collaboration between universities, research institutions, and policymakers to create the framework for forward-looking research evaluation.
The quality measurement and assurance are playing an increasingly significant role in research. In light of limited public funding and growing competition, it is crucial to make the quality of research projects transparent and comprehensible. This is important not only for the success of the research itself but also for securing third-party funding.
There are a variety of methods and criteria for research evaluation, including evaluations, rankings, and peer review processes. These methods enable a comprehensive assessment of research quality and help promote excellence and prevent undesirable developments. It is important to critically examine the various methods and criteria and tailor them to the specific requirements of the respective research field.
To further explore the evaluation procedures of research, it is advisable to consult this article. However, please note that access to certain content may be restricted and require registration. Additionally, a download with relevant supplementary material is available, offering further insights into the topic.
The Coalition for Advancing Research Assessment (CoARA) aims to fundamentally reform research assessment. The core mission of CoARA is to move beyond purely publication-based metrics and to recognize diverse research outputs. In this process, qualitative evaluations are to be supported by responsible quantitative indicators.
An important aspect of CoARA is the distinction between Signatories and Members. Both groups support the reform efforts and are committed to action plans. However, only the Members actively participate in the governance and decision-making of CoARA. This structure allows for broad acceptance of the reforms while ensuring that direction is steered by dedicated members.
CoARA promotes knowledge exchange and supports early reformers through the implementation of pilot projects. These projects are intended to develop and test innovative assessment approaches. The governance structure of CoARA, consisting of a General Assembly, a Steering Board, and a Secretariat, ensures the involvement of members in shaping the coalition.
The evaluation of societal research relevance can be conducted in different ways. The document identifies three ideal-typical modes: the historical-narrative, the standardized-administrative, and the democratic-participatory mode. Each mode is based on different legitimation strategies and relevance concepts.
The historical-narrative mode evaluates relevance retrospectively, based on historical impact and influence. However, this mode faces challenges with systematic evaluation and methodically controlled indicators. The standardized-administrative mode also evaluates relevance retrospectively but uses standardized criteria and metrics. Examples include the UK's Research Excellence Framework (REF) and Australia's Engagement and Impact Assessment (EI). The democratic-participatory mode integrates relevance evaluation prospectively, emphasizing the societal integration of research through transparency and social inclusion.
Each of these modes has its advantages and disadvantages. The historical-narrative mode can capture the long-term impact of research but is susceptible to subjective evaluations. The standardized-administrative mode allows for a more objective assessment but may favor short-term and easily measurable results. The democratic-participatory mode incorporates the perspectives of various societal groups but can lead to a dilution of research goals.
The institutionalisation of relevance assessments can have unintended consequences. These include reactivity (strategic adaptation to assessment criteria) and a loss of diversity in research. Every mode of evaluation can lead to a loss of diversity. The historical-narrative mode can overemphasise groundbreaking cases and neglect normal science. The standardised-administrative mode can incentivise research that aligns with assessment criteria and disadvantage certain areas. The democratic-participative mode can prioritise easily communicable projects and expose the research process to populist tendencies.
To counteract these negative impacts, a pluralisation of evaluation procedures is necessary. A diversified system of evaluation procedures can better capture the complexity of research and avoid undue restrictions on scientific autonomy. The authors argue that scientific autonomy should not only be viewed as "freedom from" external constraints but also as a "freedom to" engage with discourses of relevance when they are productive for research.
Historical-Narrative Mode: Can overemphasise groundbreaking cases but neglects normal science.
Standardised-Administrative Mode: Can incentivise research that aligns with assessment criteria, disadvantaging certain areas.
Democratic-Participative Mode: Can prioritise easily communicable projects, opening the research process to populist tendencies.
The reform of research assessment in Germany aims to overcome the dominance of quantitative metrics and focus on the quality of research. Criticism is mainly directed at the one-sided focus on publications as the primary research output. Initiatives like DORA, the Leiden Manifesto, and the Hong Kong Principles advocate for a reform of the overly quantitative research practices.
It is argued that quantitative indicators, often commercially generated, merely create an illusion of objectivity. This is due to variations between disciplines, correlations with the number of authors, and the Matthew effect. This can lead to standardisation, stratification, and a potential decline in disruptive innovations. The DFG strives to prioritise quality over quantity in funding applications and is involved in the European Commission's agreement on reforming research assessment. The founding of the Coalition for Advancing Research Assessment (CoARA) is mentioned as an effort to promote a cultural shift towards qualitative, peer-review-based evaluations, while considering the diversity of research contributions.
Future challenges include avoiding an overemphasis on quantitative metrics, preventing an increase in ordinal indicators, and carefully considering the role of research impact. It is emphasised that conditions for disruptive innovations must be improved, and a focus on the pursuit of new knowledge should be encouraged. The integration of qualitative criteria and the recognition of diverse research achievements are essential to comprehensively capture and foster the value of research.
The current fluctuations in the property market require a rethinking of approaches to property investments and valuations. The traditional focus on quantitative metrics is increasingly supplemented by qualitative aspects and consideration of societal impact. Initiatives like CoARA and DORA show that a change is also taking place in research evaluation, which can have a positive effect on the innovative strength and societal relevance of research.
For the property market, this means that a comprehensive analysis of the market situation, which considers both quantitative and qualitative factors, is essential. Only in this way can informed decisions be made and risks minimized. Leverage the expertise of Auctoa to navigate the current fluctuations in the property market and achieve your property goals.
Are you ready to test your property strategy and face the challenges of the market? Contact us today for personalized advice and find out how we can help you achieve your goals. Register now for free and receive an initial assessment of your opportunities.
The Coalition for Advancing Research Assessment (CoARA) advocates for a reform of research assessment that goes beyond purely publication-based metrics.
The HRK is committed to reforms in research assessment and strives for widespread acceptance within the German research landscape.
The Austrian Academy of Sciences identifies three prototypical modes for evaluating the social relevance of research.
The Institute for Higher Education Research in Bavaria analyses the reform of research assessment in Germany and aims to overcome the dominance of quantitative metrics.
What factors influence the current real estate market fluctuations?
The current real estate market fluctuations are influenced by a combination of factors, including interest rate changes, inflation, geopolitical uncertainties, and shifts in demand.
How can I protect my real estate portfolio during times of market volatility?
You can protect your real estate portfolio by ensuring diversification, adopting long-term perspectives, conducting thorough analyses, and seeking expert advice.
What role does research valuation play in real estate investments?
Research valuation, particularly the consideration of qualitative criteria and societal impact, helps identify sustainable and future-oriented real estate projects that generate long-term value.
How can I benefit from the current real estate market fluctuations?
You can benefit from the current real estate market fluctuations by investing counter-cyclically, identifying undervalued properties, and utilising flexible financing models.
What significance does the Third Mission hold for real estate developers?
The Third Mission, that is the societal impact of research, is gaining importance for real estate developers as sustainable and socially responsible projects are increasingly demanded by investors and the public.
How can Auctoa assist me in making informed real estate decisions?
Auctoa offers you fully automated valuation platforms, hybrid AI-human appraisals, digital market analyses, and comprehensive valuation reports to aid in making informed real estate decisions.
What role do qualitative assessments play compared to quantitative metrics in real estate valuations?
Qualitative assessments consider non-monetary aspects such as location quality, infrastructure, and social environment, while quantitative metrics focus on figures and facts such as price per square metre and rental yields. A combination of both approaches is ideal.
How do regulatory requirements affect the real estate market?
Regulatory requirements, such as energy efficiency standards and building regulations, can significantly influence the real estate market by increasing construction costs and altering the attractiveness of certain properties.
