A Neural Network based Model for Real Estate Price Estimation Considering Environmental Quality of Property Location

Abstract

In this paper, a model based on Artificial Neural Network (ANN) has been applied to real estate appraisal. Moreover, an evaluation of ANN performances in estimating the sale price of residential properties has been carried out. Artificial Neural Networks (ANNs) are useful in modelling input-output relationships learning directly from observed data. This capability can be very useful in complex systems like the real estate ones where motivations, tastes and budget availability often do not follow rational behaviours. This study also analyses the impact of such key environmental conditions that represent a problem related to many industrial cities where pollution and landscaping consequences affect the real estate market and residential location choices. We have considered a set of asking price's houses collected in the urban area of Taranto (Italy) where the biggest European steel factory and the 2 nd industrial harbour are located.

Estimating the Performance of Random Forest versus Multiple Regression for Predicting Prices of the Apartments

“…Most of the machine learning applications in real estate price estimation are based on Artificial Neural Networks (ANN) algorithms [2,10,11]. Fan et al [12] used the decision tree technique for exploring the relationship between house prices and housing characteristics, which aided the determination of the most important variables of housing prices and predicted housing prices.…”

Visual Estimation of Building Condition with Patch-level ConvNets

“…Artificial neural networks are capable of learning complex regression and classification models based on labeled training data and have shown to generalize well to unseen data. Thus, they have been increasingly used for price estimation of properties based on building metadata in the past and provide a satisfactory proxy for hedonic models [7,8]. See [25] for a comparison between hedonic models and artificial neural networks.…”

The Application of Classical and Neural Regression Models for the Valuation of Residential Real Estate

“…At the end of the introduction it should be noted that in the literature we can find a lot of articles describing the use of artificial intelligence in the economic area (e.g. Chiarazzo, Caggiani, Marinelli, Ottomanelli, 2014;Limsombunchai, Gan Lee, 2004;Ma, Chen, Zhang, 2015;Sampathkumar, Santhi, Vanjinathan, 2015;Soni, Sadiq, 2015;Ripley, 1994;Brockett, Golden, Jang, Yang, 2006;Hurrion, Birgil, 1999).…”