Non-Standard Determinants of Land Prices in Hedonic Pricing Models: Evidence from Poland

The main inspiration for conducting this study, based on literary study and their own experiences, is the growing complexity of investment procedures and the dynamic changes in the property market. Traditional valuation criteria, such as location or floor area, are now insufficient, as the market value of land increasingly depends on specific legal, technical and urban planning factors. Understanding these non-obvious factors is crucial for a proper assessment of investment profitability and risk. This study fills a significant gap, as the impact of non-standard property characteristics on their market value has so far received relatively limited attention in the literature. In particular, there is a lack of studies that comprehensively analyse the specific duality of these factors, whereby a single atypical feature may simultaneously represent a significant opportunity or a serious threat to the investment process. The study adopted an interdisciplinary approach, integrating knowledge from the fields of economics, geotechnics, law and urban planning. Qualitative methods were employed, based on the observation and analysis of specific cases from the Polish property market. The analysis was also supplemented by a brief comparison with foreign markets (including Germany, the USA and Spain) to identify differences and similarities in valuation. The results of the study clearly show that unusual circumstances drastically alter the final price of a property. It was demonstrated that favourable factors, such as the possibility of dividing or consolidating a plot, can increase its value by between 25% and 40%. Conversely, encumbrances such as an unresolved legal status, difficult geotechnical conditions or a location on the site of a former cemetery can reduce the price by between 30% and as much as 100%. These findings demonstrate the need for an individualised approach to valuation that goes beyond traditional comparative models.