Open AccessResearch on Factors Affecting Real Estate Values by Data Mining
Author(s) -
Filiz Ersöz,
Taner Ersöz,
Muhammet Soydan
Publication year - 2018
Publication title -
baltic journal of real estate economics and construction management
Language(s) - English
Resource type - Journals
eISSN - 2255-9671
pISSN - 2255-9604
DOI - 10.2478/bjreecm-2018-0017
Subject(s) - real estate , cost approach , valuation (finance) , income approach , computer science , real estate development , corporate real estate , capitalization rate , popularity , value (mathematics) , chaid , data mining , business , finance , real estate investment trust , machine learning , decision tree , psychology , social psychology
Construction sector has an important place in Turkey’s economy. Real estate sales for the sector are increasing in parallel. However, the purchase cost is also important for those who are willing to buy a real estate. In the acquisition of real estate, factors such as size, location and age of the house are taken into consideration. The aim of the article is to conduct research on factors affecting real estate values by data mining. In this study, the most important variables that determine the value of the real estate have been investigated by data mining methods. The research has been carried out in Karabük and the variables determined according to the opinions of real estate experts. As classification methods, CHAID and C&RT algorithms have been used. It has been evaluated that both algorithm estimation results can be used. Within the framework of the study, the variables that have the most impact on the unit price have been determined, such as the size of the real estate, the distance to the city centre, the popularity, and the age of the building. The use of advanced technologies, such as statistical modelling and machine learning in real estate valuation and automatic value estimation, is of importance in determining the real value of the real estate.