Contextualized Property Market Models vs. Generalized Mass Appraisals: An Innovative Approach

Pierluigi Morano, Paolo Rosato, Francesco Tajani, Benedetto Manganelli and Felicia Di Liddo
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Pierluigi Morano: Department of Civil Engineering Sciences and Architecture, Polytechnic University of Bari, Via Orabona 4, 70125 Bari, Italy
Francesco Tajani: Department of Architecture and Design, Sapienza University of Rome, Via Flaminia 359, 00196 Rome, Italy
Benedetto Manganelli: School of Engineering, University of Basilicata, Viale dell’Ateneo Lucano, 85100 Potenza, Italy
Felicia Di Liddo: Department of Architecture and Design, Sapienza University of Rome, Via Flaminia 359, 00196 Rome, Italy

Sustainability, 2019, vol. 11, issue 18, 1-28

Abstract: The present research takes into account the current and widespread need for rational valuation methodologies, able to correctly interpret the available market data. An innovative automated valuation model has been simultaneously implemented to three Italian study samples, each one constituted by two-hundred residential units sold in the years 2016–2017. The ability to generate a “unique” functional form for the three different territorial contexts considered, in which the relationships between the influencing factors and the selling prices are specified by different multiplicative coefficients that appropriately represent the market phenomena of each case study analyzed, is the main contribution of the proposed methodology. The method can provide support for private operators in the assessment of the territorial investment conveniences and for the public entities in the decisional phases regarding future tax and urban planning policies.

Keywords: regression methods; genetic algorithm; property market; housing prices; automated valuation model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (10)

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