What drives the differences between transaction and offered prices on the real estate market in Prague?
|Author:||Mgr. Václav Kalous|
|Year:||2021 - summer|
|Leaders:|| Mgr. Petr Polák MSc. Ph.D.
|Work type:|| Economic Theory
|Awards and prizes:|
|Abstract:||This thesis covers two subjects regarding the real estate market in Prague. In the
first part, we look for factors that influence the differences between offer and realized
prices of residential properties. From our dataset, we identify the area and the time
spent on market as the variables with the largest impact on the price differences.
Additionally, we find that price differences are spatially correlated and tend to
influence each other. Finally, accessibility of the apart- ment to given POI’s seems to
have a small but significant effect as well. In the second part, we build a neural
network to predict the transaction prices per meter squared. After thorough
architecture adjustment and hyperparameter tuning, we propose a model which is
able to improve the current best prediction on the dataset by more than 12 %.