How Much Does Location Determine the Market Value of a Building According to a Multiple Econometric Analysis? †

Abstract

Multi-parametric valuation techniques, in real estate valuation, are particularly useful to understand and define all the factors that contribute to the determination of market prices. Even though a plethora of building features influence the way prices are formed, location is certainly among the most influential. As such, the goal of this research is the analysis of position and neighbourhood in the process of market value estimation for a building. Particular attention is given to the comparison of location characteristics versus construction characteristics by means of a multi-parametric econometric analysis.