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Optimization Of The Variables Selection In The Process Of Real Estate Markets Rating

Author

Listed:
  • Malgorzata Renigier-Bilozor

    (University of Warmia and Mazury in Olsztyn)

  • Andrzej Bilozor

    (University of Warmia and Mazury in Olsztyn)

Abstract

The growing significance of the real estate market prompts investors to search for factors and variables which support cohesive analyses of real estate markets, market comparisons based on diverse criteria and determination of market potential. The specificity of the real estate market is determined by the unique attributes of property. The Authors assume that developing real estate market ratings identifies the types of information and factors which affect decision-making on real estate markets. The main objective of real estate market ratings is to create a universal and standardized classification system for evaluating the real estate market. One of the most important problems in this area is collecting appropriate features of real estate market and development dataset. The main problem involves the selection and application of appropriate features, which would be relevant to the specificity of information related to the real estate market and create a kind of coherent system aiding the decision-making process. The main aim of this study is the optimization of set of variables that were used to develop the real estate market ratings. For this purpose, Hellwig’s method of integral capacity of information was applied. In this particular case, the method shows what set of variables provides information most sufficiently. The results lead to obtaining the necessary set of features that constitute essential information which describes the situation on the local real estate market.

Suggested Citation

  • Malgorzata Renigier-Bilozor & Andrzej Bilozor, 2015. "Optimization Of The Variables Selection In The Process Of Real Estate Markets Rating," Oeconomia Copernicana, Institute of Economic Research, vol. 6(4), pages 139-157, December.
  • Handle: RePEc:pes:ieroec:v:6:y:2015:i:4:p:139-157
    DOI: 10.12775/OeC.2015.033
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    References listed on IDEAS

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    1. Grossman, Sanford J & Stiglitz, Joseph E, 1980. "On the Impossibility of Informationally Efficient Markets," American Economic Review, American Economic Association, vol. 70(3), pages 393-408, June.
    2. Karl E. Case, 2000. "Real Estate and Macroeconomy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(2), pages 119-162.
    3. Case, Karl E & Shiller, Robert J, 1989. "The Efficiency of the Market for Single-Family Homes," American Economic Review, American Economic Association, vol. 79(1), pages 125-137, March.
    4. Eli Beracha & Hilla Skiba, 2011. "Momentum in Residential Real Estate," The Journal of Real Estate Finance and Economics, Springer, vol. 43(3), pages 299-320, October.
    5. Karl E. Case & Robert J. Shiller, 1990. "Forecasting Prices and Excess Returns in the Housing Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 18(3), pages 253-273, September.
    6. David Collett & Colin Lizieri & Charles Ward, 2003. "Timing and the Holding Periods of Institutional Real Estate," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 31(2), pages 205-222, June.
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    2. Andrzej Biłozor & Szymon Czyża & Tomasz Bajerowski, 2019. "Identification and Location of a Transitional Zone between an Urban and a Rural Area Using Fuzzy Set Theory, CLC, and HRL Data," Sustainability, MDPI, vol. 11(24), pages 1-20, December.

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    More about this item

    Keywords

    real estate market rating; optimization of the variables selection; Hellwig’s method;
    All these keywords.

    JEL classification:

    • B16 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Quantitative and Mathematical

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