🏠 💵 (AVM) Automated Valuation Model

Data modeling for price prediction

Automated Valuation Models (AVMs) are advanced analytical tools that leverage a wide range of real-world factors to determine a property's estimated value. These models seek to capture the complexity and variability of the real estate market using parameters such as:

• Land square meters: Larger sizes generally mean higher property values.

• Total built area square meters: This includes not just livable space but garages, patios, balconies, etc.

• Proximity to other buildings: Nearness to other houses, structures can impact value.

• Closeness to commercial buildings: Accessibility to malls, restaurants, schools and other amenities can increase appeal.

• Nights booked on platforms like Airbnb, Booking.com, Expedia: Indicates rental demand in the area.

• Annual occupancy rate: Higher rates signal strong demand, potentially increasing values.

• Average price per square meter in the area: A key indicator of local market prices.

• Local infrastructure upgrades: Improvements can boost surrounding property values.

• Geopolitical situation: Political and economic factors may sway markets.

• Economic indicators like steel, oil and iron costs: Can influence construction costs and hence property values.

Importantly, most AVMs employ a comparative approach - analyzing values of similar properties in the vicinity to help determine a given property's value.