Abstract

Real estate has always been an important investment opportunity. With a diverse set of financial instruments linked to real estate assets, it is significant for both investors and intermediaries. In this paper we assess how artificial intelligence can be used to improve our understanding for the real estate market changes. We suggest and test a three-stage model in support for real estate valuation and market forecasting, that is able to account for global economic factors as well as for individual characteristics influencing property prices. Every stage provides for using different artificial intelligence and machine learning methods in order to automate processing of market data and assess how qualitative factors affect valuation. We conduct a survey on the accuracy of the model NAREIT and BGREIT index data.

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