Real estate valuation with artificial intelligence approaches

Real Estate valuation in urban areas is a very difficult task that has absorbed the interest of many academics in the past years. Many qualitative and quantitative variables affect the value of an estate in urban areas. As a result, multivariate models are more suitable in the appraisal process. One of the most common approaches is multiple linear regression technique (MLR) that is always used as a benchmark in various studies. A very promising way of dealing with uncertainty in real estate analysis and producing sufficient evaluations is the use of Artificial Neural Networks (ANNs). Also, an expert method combining the strengths of MLR and ANN is tried out successfully. The purpose of this study is to compare these approaches on the basis of the data from the Attica urban area in Greece.