“…Spatial factors play a very important role in the analyses of the real estate market, but they are not easy to incorporate in models of the evaluated space. In the literature, most market analyses have been conducted with the use of multiple regression models and their derivatives (Isakson, 1998;Czaja, 2001;Benjamin et al, 2004;Sirmans et al, 2005;Adamczewski, 2006;Bitner, 2007;Czaja & Dąbrowski, 2008;Barańska, 2010;Sawiłow, 2010;Dąbrowski, 2011). Multiple regression models are a highly useful tool for analyzing transaction prices, but they are not frequently applied in practice, mainly due to problems with meeting formal requirements during model design (Hozer, 2001).…”