A property valuation model to identify thriving real estate opportunities, based on transport factors

Abstract

This study is an attempt to comprehend what transport variables (E.g. distance to main city, distance to Major “A”, “B” Roads etc.) has higher or lower impact on a property’s worth and to what extent has it been impacting on a property’s value. In order to experiment it, a valuation model using Geographical Information System and Multi linear Regression has been created for an urban local area, using the foundation of literature and real ground stakeholders’ judgments. The model generates the outcome of the spatial variation of property value, demonstrating the behavioral patterns and trends graphically, considering both the adjacency effect (transport variables) and neighborhood effect. (physical and social environments). This research highlights the prominence in transport variables’ impact on property value over the neighborhood variables. This model could serve as a starting guidance tool for valuers, brokers, property agents, planners, researchers and other parties involved in the real estate & infrastructure sector to estimate property value that is highly based on transport variables.