Optimal database design for the storage of financial information relating to real estate investments
| Pages | 535-546 |
| DOI | https://doi.org/10.1108/JPIF-05-2016-0029 |
| Date | 01 August 2016 |
| Published date | 01 August 2016 |
| Author | Sergey Trofimov,Nikodem Szumilo,Thomas Wiegelmann |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
PRACTICE BRIEFING
Optimal database design
for the storage of financial
information relating to
real estate investments
Sergey Trofimov
Banking Institute, National Research University –Higher School of Economics,
Moscow, Russian Federation
Nikodem Szumilo
Department of Land Economy, University of Cambridge, Cambridge, UK, and
Thomas Wiegelmann
Institute of Sustainable Development and Architecture,
Bond University, Robina, Australia
Abstract
Purpose –The purpose of this paper is to examine state of the art data storage methods of real estate
investment data.
Design/methodology/approach –It analyses the process of real estate investment in order to
classify and characterize the data it generates. Appropriate literature review is provided.
Findings –The results show that a relational database is the most appropriate database management
system type for real estate related data.
Practical implications –Appropriately structured and modelled data flow can improve the
design of the real estate investment process. It is also concluded that adopting an optimal design of
IT-solutions could improve informational and operational efficiency of the industry.
Originality/value –The subjectof this paper lacks sufficientcoverage. Popular database management
systems are presentedand analysed in the context of their suitability for the real estate industry.
Keywords Optimization, Data storage, Data flow, Database structure, Real estate investment process,
Real estate transactions data
Paper type Viewpoint
1. Introduction
This paper focuses on data contained in real estate transactions. As the real estate
market is becoming more and more global and many investors are entering markets far
away from their domiciles the accuracy and correctness of data available to them are
becoming increasingly important. With many social, legal and economic barriers being
the primary concerns for international investors (see classical academic work by Stulz,
1981 and modern way of thinking by Francois et al., 2013) little attention is paid to data
collection and processing differences between different markets. With data often being
treated as key elements of models and forecasts its limitations can seriously affect
investment decisions. Information relevant to real estate investments is very diverse
when compared to other international investment markets (e.g. high-frequency equity
trading or electronic market making). High degree of idiosyncracity of individual
markets and transactions, limitations to creating objective indices and low transaction
Journal of Property Investment &
Finance
Vol. 34 No. 5, 2016
pp. 535-546
©Emerald Group Publis hing Limited
1463-578X
DOI 10.1108/JPIF-05-2016-0029
Received 14 May 2016
Revised 29 May 2016
Accepted 30 May 2016
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1463-578X.htm
535
Optimal
database
design
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