Assessing Real Estate Characteristics on the Housing Market of Budapest: A Geographically Weighted Hedonic Pricing Approach

Absztrakt (kivonat)

Recently the real estate housing market in Budapest is in a boom, which is characterized by the ever-rising rents and prices on the market. In a scenario like this knowing the property characteristics that drive prices can be a valuable asset. A geospatial database of 11061 property listings in Budapest is used, including the properties’ price, certain internal and locational characteristics. The paper is using the methodology of the hedonic pricing approach and geographically weighted regression in order to build a database containing the estimated spatially varying coefficients of housing characteristics. The paper proved that residents valuation of the characteristics varies spatially