Research background: Every real estate may be described with a multitude of attributes. In the process of real estate appraisal only those properties are taken into account that significantly affect its value. Mass appraisal involves a simultaneous valuation of many similar real properties, carried out in the same manner and at the same time. The algorithm applied to mass appraisal ought to ensure a uniform approach to the valuation of all real estate of the same type in an objective fashion. Purpose: The purpose of the paper is to define the weights of attributes in the process of real estate mass appraisal on the basis of relationships between unit property value and the values of attributes. Research methodology: The weights were defined on the grounds of partial correlation coefficients for the qualitative properties (Spearman rank correlation coefficient and τB Kendall correlation coefficient). Results: The signs of certain correlation coefficients were discordant with the actual direction of the relations between the analysed properties. The problem was avoided by employing partial correlation coefficients. On the basis of the calculated partial correlation coefficients the weights of individual attributes were calculated. Of all analysed coefficients the partial τB Kendall correlation coefficient is methodologically the most suitable one. Novelty: The use of partial correlation coefficients for determining attribute weights is an innovative approach and is applied in the article.

The real estate market is regarded as a part of the capital market. Just as they invest in securities, investors allocate their funds in real estate, hoping to make a sound profit. There are many tools that support the process of investing on the stock exchange, such as a technical analysis. There are also proven methods that help predict future prices of assets on the basis of their historic quotations. The article is an attempt to transfer the Japanese method of candlestick charting used in the technical analysis of securities onto the real estate market. The method has been implemented on the residential real estate market due to the relatively large number of transactions being concluded there.

Variables occurring in a real estate market are frequently presented on scales other than interval or ratio scales. Most frequently, the scale is an ordinal (for instance – onerous, unfavourable, neutral, favourable), or possibly a nominal one. That is why the use of scales intended for quantitative attributes (such as Pearson linear correlation coefficient) is not possible. The paper presents the results of employing other coefficients (Kendall’s τB and Spearman’s ρ coefficients) in analyzing correlations on the real estate market.The objective of the article is to present a method of analyzing the correlation of qualitative variables (attributes) and to present the possibility of using the obtained results in the process of real estate appraisal.

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