Clustering Analysis in a Complex Real Estate Market: The Case of Ortigia (Italy)

Abstract

AbstractOrtigia, the historic center of Syracuse, is a complex urban entity characterized by high outer homogeneity and inner heterogeneity. The evolution of its real estate market during the last decade is somehow related to the global property market one. In addition its events are connected with the evolution of the exploiting policies still ongoing. The critical observations of its features aim at providing tools able to support the decisions about subsides and local property taxes. This study continues the observations we have carried out for five years, this time involving clustering analysis, a data mining technique able to recognize different submarkets, and suitable to make the valuation pattern fit to the different market areas. For each of the latter significant characteristics have been recognized with reference to the “monetary declination” of these particular capital assets.KeywordsImperfect real estate marketsmass-appraisalsclustering analysistheory of capitalincome method