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Paper eres2004_197:
Improving Hedonic Office Rent Prediction Models

id eres2004_197
authors Pekdemir, Dilek; Attila, Oven
year 2004
title Improving Hedonic Office Rent Prediction Models
source 11th European Real Estate Society Conference (2-5 June 2004) Milano, Italy
summary Modelling and predicting office rent have become one of the major research areas in the real estate field, for both academics and practitioners. The hedonic office rent prediction approach is the most common method based on multiple regression. The major deficiencies of the hedonic model are the multicollinearity problem that may exist between a large number of independent variables, the failure to incorporate the whole range of parameters that may affect the office rent and the interaction effects of the independent variables. The hedonic approach can be improved in two successive steps. First, related parameters can be grouped into factors and their influence, rather than the individual influence of the parameters, can be assessed. In this regard, the principal component approach and factor analysis have been employed. Second, the interaction of the factors can be taken into account by means of factorial design approach. The paper underpins the application of the statistical techniques, namely the principal component analysis, and the factorial design approach, to further improve usability of the hedonic approach.
keywords Hedonic office rent prediction; principal component analysis; factor analysis; factorial design
series ERES:conference
email oven@gyte.edu.tr
discussion No discussions. Post discussion ...
ratings
session Hedonic and Replication Methods for Estimating Property Values
last changed 2008/12/21 10:41
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