Multiple regression analysis to predict the value of a residential building and to compare with the conventional method values

Abstract

Valuation is an art which has found various use in different sectors. But it is seldom restricted to the boundaries of engineers and architects when it comes to property valuation. In the present study, the market value of a residential building situated in Udupi, Karnataka State, India is predicted using Multiple Regression Analysis (MRA) based on the factors affecting the value of the property. This value is then compared with the values obtained by the conventional approaches of valuation like Land and Building method, Rental Income Approach, Composite Rate method and by detailed estimation approach. The property under valuation has a plinth area of 2545.42 square feet standing on a free hold land of 4207.896 square feet. The market value predicted by Multiple Regression Analysis (MRA) shows a variation of 14.10% in comparison with Land and Building method, a variation of - 22.17% in comparison with Rental Income approach, a variation of 4.90% in comparison with Composite Rate method and a variation of 8.81% in comparison with detailed estimate method. The advantage of using MRA is that it uses statistical modelling and reduces the chance of human bias and error.

Study of factors influencing apartment prices in Prishtina, Kosovo

“…Likewise, the floor is found to be an important factor influencing high-priced houses in Izmir, Turkey (Özsoy and Şahin, 2021). Similiarly, Shetty et al (2020) found the floor to be an important determinant of apartment prices.…”

“…Likewise, Özsoy and Şahin (2021) using the quantile regression approach found that distance from the center has a uniform impact on the property prices in all quantiles of the Balkova district in Izmir, Turkey. Finally, Shetty et al (2020) using multiple regression analysis found that location is the key determinant of property prices in India.…”

“…Above all, Özsoy and Şahin (2021) in their study found that the size of the house, the existence of an elevator, fire and security have a positive and significant effect on prices. Finally, the size and age of the building are considered to be important structural attributes affecting apartment prices (Shetty et al , 2020).…”

Modeling the Size of Protection Zones of Cultural Heritage Sites Based on Factors of the Historical and Cultural Assessment of Lands

“…The coefficient of determination is calculated to assess the quality of fitting the linear function of the model. It characterizes the proportion of the variance of the zone area, explained by regression in the overall regression of the final area (2) [44]:…”

“…To determine the normality of the distribution of the sample of predicted values of the area of protection zones, the Kolmogorov-Smirnov test is used [44]. We test hypothesis H 0 : F 1 (x) = F 2 (x) so that the data is described by the same distribution function.…”