Hedonic Pricing Model for Real Property Valuation via GIS - A Review

Aladwan, Zubeida; Ahamad, Mohd Sanusi S.

doi:10.2478/ceer-2019-0022

Cited by 13 publications

(7 citation statements)

References 14 publications

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“…Interesting studies dealing with the relationships between real estate values and different environmental elements, including the distance from green areas, proximity to center and water bodies, by using remote sensing and GIS data, are already available in the scientific literature [19,[43][44][45][46]. However, few studies have investigated the intra-urban surface thermal anomaly pattern in relation to the real estate value of residential buildings, and in particular those aimed at investigating the relationship between surface thermal hot-spot zones, a phenomenon that increasingly affects our cities, and the real estate market value.…”

Section: Discussionmentioning

confidence: 99%

Residential Buildings’ Real Estate Values Linked to Summer Surface Thermal Anomaly Patterns and Urban Features: A Florence (Italy) Case Study

et al. 2022

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Climate-change-related extreme events impact ecosystems, people, economy, and infrastructures, with important consequences on the real estate market as well. This study aims to investigate the variation of residential buildings’ real estate values in a historic Italian city in relation to the summer surface thermal anomaly pattern and urban features surrounding buildings. Open data from remote sensing products and the national database of the Revenue Agency of Italy were used. Real estate values of residential buildings were spatially analyzed in four urban belts, and the association with daytime summer surface hot- and cool-spot zones was studied through odds ratio (OR) statistic. Urban features (impervious area, tree cover, grassland area, and water body) surrounding residential buildings with different real estate values were also analyzed. Considering the whole Florentine municipality, 13.0% of residential buildings fell into hot-spot zones (only 0.6% into cool-spot ones), characterized by very low tree cover surfaces (generally <1%), most of which were in the central belt (37% of all buildings in central belt). Almost 10% of these buildings belonged to the highest market value class revealing a positive association (OR = 1.53) with hot-spot zones. This study provides useful information to plan targeted building interventions to avoid a probable decrease of the value of residential properties in high heat-related risk areas.

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Section: Discussionmentioning

confidence: 99%

Residential Buildings’ Real Estate Values Linked to Summer Surface Thermal Anomaly Patterns and Urban Features: A Florence (Italy) Case Study

et al. 2022

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“…The seamless connectivity facilitated by welldeveloped roads, highways, and efficient public transportation systems, such as buses and trains, is paramount for ensuring accessibility within and beyond urban centers. This robust transportation network not only enhances trade and commerce but also fosters tourism and facilitates daily commuting activities [5]. Additionally, the reputation, diversity, and quality of educational institutions within a town are instrumental in attracting residents and contributing to its overall allure [1].…”

Section: Literature Reviewmentioning

confidence: 99%

“…This evaluative process encompasses a wide range of considerations, such as the presence of educational institutions, banking and financial establishments, healthcare facilities, public services, commercial establishments, and the efficiency of transportation and connectivity options [6]. Healthcare facilities play a crucial role in enhancing the well-being and convenience of residents and consequently exert a notable impact on the appeal of a town [5].…”

Section: Literature Reviewmentioning

confidence: 99%

A Holistic Approach to Land Valuation Using Automated Valuation Models (AVMs): A Case Study in Homagama Divisional Secretarial Administrative Boundary, Sri Lanka

Nisansala,

Kaluthanthri

2023

AJARR

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Land valuation is a crucial process that involves the comprehensive assessment of specific land parcels to estimate their worth based on market value or predefined value base on valuation standards and regulations. Traditionally, this process has relied on expert involvement, often leading to different value figure for the same land by different valuation officers. While minor variations are considered acceptable, concerns have been raised regarding the lack of transparency, accuracy, and efficiency in the traditional approach. In response to these challenges, this study proposes an innovative system leveraging the potential of automated valuation models (AVMs) and big data applications in the real estate domain to address the limitations of traditional land valuation methods. The objective of the study is to enhance the transparency and accuracy of land valuation through the integration of a holistic data interpretation system, improved information exchange between AVM projects and property valuation, and the automation of specific workflows for property assessment. The study focuses on the Homagama Divisional Secretarial administrative boundary in Sri Lanka as a case study area for implementing the proposed AVM-based valuation model. The methodology adopts a multi-criteria approach with expert validation, considering various causative factors influencing land value, such as access to transportation, proximity to schools, distance from government and commercial establishments, proximity to hospitals, slope, land use, distance to urban centers, and population. To determine the relative importance of each factor, the Analytical Hierarchical Process (AHP) is utilized, providing a rational and consistent weighting approach. The AVM is developed using ArcGIS software and Weighted Overlay Analysis, effectively capturing the spatial distribution of land values within the study area. The research results in the classification of the Homagama Divisional Secretary area into distinct land value classes, ranging from very low to very high valued areas. In order to ensure the accuracy and validation of the model, the estimated AVM for land lot cadaster data, is reviewed alongside real-world land value data. The valuation map produced presents a graphical representation of the value of each land parcel, thereby facilitating rapid decision-making processes. Additionally, the study highlights the potential for further enriching the model with additional factors beyond those initially considered. In conclusion, this study demonstrates the value of AVMs in revolutionizing land valuation by providing a transparent, accurate, and efficient approach. The proposed model serves as a valuable tool for decision-makers, stakeholders, and property professionals in their efforts to assess land values and make informed real estate investment decisions.

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“…Although the reviewed papers presented some 3D elements extractable from BIM and other 3D models as potential factors for real estate valuation, the main issue here is the level of efficiency of these 3D variables in reducing the uncertainty of the current valuation methods. Area, age, floor, number of bedrooms and bathrooms, location, access to public transportation, access to urban facilities and services, design quality, parking, date of transaction and current market prices have been raised as the most important factors affecting the value of houses (Aladwan and Ahamad, 2019;Rubio et al, 2008;Belniak and Wieczorek, 2017;Watkins, 1999;Arribas et al, 2016;Wyatt, 1997;Yalpir and Ozkan, 2018;Liu et al, 2018b;Abidoye and Chan, 2018a, b;Francke and Vos, 2004). Thus, it is essential to evaluate the exact effect of the introduced 3D factors in improving the accuracy of the current real estate valuation models in comparison to the primary valuation factors.…”

Section: Introduction Of Some New 3d Factors Extractable From Bim And...mentioning

confidence: 99%

BIM and real estate valuation: challenges, potentials and lessons for future directions

Jafary¹,

Shojaei

Rajabifard

et al. 2022

ECAM

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PurposeBuilding information modeling (BIM) is a striking development in the architecture, engineering and construction (AEC) industry, which provides in-depth information on different stages of the building lifecycle. Real estate valuation, as a fully interconnected field with the AEC industry, can benefit from 3D technical achievements in BIM technologies. Some studies have attempted to use BIM for real estate valuation procedures. However, there is still a limited understanding of appropriate mechanisms to utilize BIM for valuation purposes and the consequent impact that BIM can have on decreasing the existing uncertainties in the valuation methods. Therefore, the paper aims to analyze the literature on BIM for real estate valuation practices.Design/methodology/approachThis paper presents a systematic review to analyze existing utilizations of BIM for real estate valuation practices, discovers the challenges, limitations and gaps of the current applications and presents potential domains for future investigations. Research was conducted on the Web of Science, Scopus and Google Scholar databases to find relevant references that could contribute to the study. A total of 52 publications including journal papers, conference papers and proceedings, book chapters and PhD and master's theses were identified and thoroughly reviewed. There was no limitation on the starting date of research, but the end date was May 2022.FindingsFour domains of application have been identified: (1) developing machine learning-based valuation models using the variables that could directly be captured through BIM and industry foundation classes (IFC) data instances of building objects and their attributes; (2) evaluating the capacity of 3D factors extractable from BIM and 3D GIS in increasing the accuracy of existing valuation models; (3) employing BIM for accurate estimation of components of cost approach-based valuation practices; and (4) extraction of useful visual features for real estate valuation from BIM representations instead of 2D images through deep learning and computer vision.Originality/valueThis paper contributes to research efforts on utilization of 3D modeling in real estate valuation practices. In this regard, this paper presents a broad overview of the current applications of BIM for valuation procedures and provides potential ways forward for future investigations.

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Hedonic Pricing Model for Real Property Valuation via GIS - A Review

Cited by 13 publications

References 14 publications

Residential Buildings’ Real Estate Values Linked to Summer Surface Thermal Anomaly Patterns and Urban Features: A Florence (Italy) Case Study

Residential Buildings’ Real Estate Values Linked to Summer Surface Thermal Anomaly Patterns and Urban Features: A Florence (Italy) Case Study

A Holistic Approach to Land Valuation Using Automated Valuation Models (AVMs): A Case Study in Homagama Divisional Secretarial Administrative Boundary, Sri Lanka

BIM and real estate valuation: challenges, potentials and lessons for future directions

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