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AbstractThe article presents the theoretical concept and economic justification for using fair value as a basis for determining the value of damage caused by indirect nuisance created by companies and as a basis for appraising real estate for that purpose. The conditions and possibilities of applying fair value in Poland are assessed against the background of selected economic concepts of market fairness and market efficiency. The author focuses his considerations on the purposes of valuating the property of households in a conflict situation involving setting the amounts of compensation for external impacts of companies’ activities. The theoretical considerations are put in practical context by the assessment of the possibility to use fair value in Poland for appraising property located in the limited use areas of airports (LUA of airports) when estimating damage resulting from the loss of value due to the legalization of noise nuisance.
Real Estate Management and Valuation – de Gruyter
Published: Sep 1, 2018
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