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

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  • Pierluigi Morano

    (Department of Civil Engineering Sciences and Architecture, Polytechnic University of Bari, Via Orabona 4, 70125 Bari, Italy)

  • Paolo Rosato

    (Department of Engineering and Architecture, University of Trieste, 34127 Trieste, 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)

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.

Suggested Citation

  • Pierluigi Morano & Paolo Rosato & Francesco Tajani & Benedetto Manganelli & Felicia Di Liddo, 2019. "Contextualized Property Market Models vs. Generalized Mass Appraisals: An Innovative Approach," Sustainability, MDPI, vol. 11(18), pages 1-28, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4896-:d:265041
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