A RECURRENT NEURAL NETWORK FOR FOR REAL ESTATE PRICE ESTIMATION

Abstract

The paper considers the problem of estimating the price of real estate. Automation of the solution to the specified problem is one of the methods of providing an objective assessment, which excludes such subjective factors as an arithmetic calculation error, assessment under the influence of emotions, assessment under the influence of the pursuit of one's own goals. Most often, regression analysis (hedonic regression) and machine learning methods are used to solve the problem of estimating the price of real estate. The purpose of this research is to build a model for estimating the price of real estate not only on the basis of the usual quantitative indicators (for example, area, number of rooms, floor, etc.), but also on the basis of the textual description of the real estate. In this paper we consider a real estate in new residential builings in the Kyiv. To achieve the goal, a mathematical model was developed for the classification of real estate class based on a textual description using a recurrent neural network. The model is developed as a multi-layer feed-forward neural network that accepts textual data describing a new residential building and passes it through a series of hidden layers, where each layer consists of neurons. The simulated categorical variable 'predictedClass' was used as the independent variable of the linear regression to calculate the price of an apartment in a new building. Compared to classical linear regression with quantitative regressors, the new model provided a high R2 with a minimal number of variables.