Residential market ratings using fuzzy logic decision-making procedures

Abstract

The recent global financial crisis has highlighted the important role that the real estate market plays in the global economy. The specific character of the real estate market, the availability of market information and the sudden, unpredictable changes that often occur in that market, as well as investments, are affected by considerable risks and uncertainties. Objective monitoring of the real estate market is a requirement to maintain balance, increase security and minimise the risk of crises in urban spaces. One solution is to analyse and monitor the markets continuously, using comprehensive classification. In this paper, the authors propose the creation of a decision-making support system based on an analysis of the condition of real estate markets using ratings. The proposed procedure employs decision-making theory, data mining technology (Rough Set Theory and Value Tolerance Relation fuzzy theory) and rating scoring analysis.