Abstract
The real estate sector has been negatively affected by the recent economic recession, which has forced structural changes that impact property value and price. Recent pressures have also motivated reduced liquidity and access to credit, causing a drop in property sales and, thus, boosting the rental housing market. It is worth noting, however, that the rental housing segment is not with-out difficulties and complexity, namely in terms of legislation and rental value revaluation. In light of this reasoning, this study aims to develop a multiple criteria decision support system for calculation of residential rents. By integrating cognitive maps and the measuring attractiveness by a categorical based evaluation technique (MACBETH), we also aim to introduce simplicity and transparency in the decision making framework. The practical implications, advantages and shortfalls of our proposal are also analyzed.
Highlights
The real estate sector is of great importance for the economic and social development of a country, and any change within it has repercussion in other sectors of economic activity
Fostered by the economic crisis, a visible lack of purchasing power of the population has been taking place, coupled with liquidity shortages and lending retraction. These factors led to a decline in real estate sales and, in parallel, to a strong growth of the rental housing market
It is known that the multiple criteria decision analysis (MCDA) approach is an open field of research, which recognizes the limits of the mathematical optimum and aims to build something that does not pre-exist
Summary
The real estate sector is of great importance for the economic and social development of a country, and any change within it has repercussion in other sectors of economic activity. Fostered by the economic crisis, a visible lack of purchasing power of the population has been taking place, coupled with liquidity shortages and lending retraction These factors led to a decline in real estate sales and, in parallel, to a strong growth of the rental housing market (cf Gomes, Rangel 2009a, 2009b; Lee, Chung 2010). With this background in mind, there is a clear need for the rental housing market to be consistent with the landlords’ requirements, the tenants’ expectations and, simultaneously, with the economic and social interests of the State It is from this perspective that the use of structuring techniques and multiple criteria evaluation methods seems to make sense, as these approaches have been reported in the literature as able to clarify complex decision problems guided by conflicting positions (Belton, Stewart 2002).
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