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Paper eres2015_227:
Evolution of the explanatory variables of the price of real estate in Lisbon during the last economic crisis.

id eres2015_227
authors Castanheira, Paulo
year 2015
title Evolution of the explanatory variables of the price of real estate in Lisbon during the last economic crisis.
source 22nd Annual European Real Estate Society Conference in Istanbul, Turkey
summary The main purpose of this study is to understand how the price of housing is formed_in the new ( expo) and old town in Lisbon ( traditional neighborhoods). The study focuses on the prices of the apartments that were sold with the assistance of Estate Agents operating in Lisbon in last 3 years, and how the economic crisis can explain the market price. _._For the development of the study, we used two different methodologies: Hedonic_Pricing Methods (MPH) and Artificial Neural Networks (ANN). ANN are a less_traditional econometric technique from the field of Artificial Intelligence, but they_are strong competitors with the MPH. In the last two decades, the MPH has been_applied to the real estate market in Portugal but, till the present, no single study is_known with the ANN. To obtain the best hedonic model, numerous tests were_developed, aiming the validation of MPH and also the adequate selection of_variables that contribute most to the prices._The tests were performed with the statistical software SPSS, _The explanatory variables included in the final model for the price of an apartment_were: the floor area (m2), the garage and basement index, the comfort index, the_location index and two other variables resulting of interactions, one between the_year of sale and the condition of the apartment (whether it is new or used) and the_other between the preservation index and the condition of the apartment. With_these six explanatory variables, the MPH has achieved an accuracy quite_significant when compared with some previous studies. _
keywords Hedonic Prices, Artificial Neural Networks
series ERES:conference
type paper session
discussion No discussions. Post discussion ...
session Real Estate Valuation
last changed 2015/07/08 18:06
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