Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, Poland

The study explores the application of Partial Dependence Plots (PDP) in the analysis of real estate features. The study centers on a selected real estate market in Szczecin, Poland, aiming to highlight the efficacy of PDP in understanding and interpreting the complex relationships between various fe...

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Main Author: Gnat Sebastian
Format: Article
Language:English
Published: Sciendo 2024-12-01
Series:Real Estate Management and Valuation
Subjects:
Online Access:https://doi.org/10.2478/remav-2024-0039
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author Gnat Sebastian
author_facet Gnat Sebastian
author_sort Gnat Sebastian
collection DOAJ
description The study explores the application of Partial Dependence Plots (PDP) in the analysis of real estate features. The study centers on a selected real estate market in Szczecin, Poland, aiming to highlight the efficacy of PDP in understanding and interpreting the complex relationships between various features and property prices. The primary objective is to showcase the potential of PDP in capturing the nuanced interactions between real estate attributes and their impact on market prices. The CatBoost model, known for its robust handling of categorical features and strong predictive capabilities, is employed as the machine learning algorithm for this analysis. The performance of this model will be compared against a traditional multiple linear regression model, providing insights into the advantages of leveraging advanced machine learning techniques in real estate analysis. Results obtained from the analysis will be presented and discussed, shedding light on the interpretability and accuracy of the CatBoost model compared to the traditional linear regression approach. The presentation will conclude with implications for real estate practitioners and researchers, emphasizing the potential for PDP to enhance the transparency and understanding of complex models in the real estate domain. This research contributes to the growing body of knowledge on the application of advanced machine learning techniques in real estate analysis.
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spelling doaj-art-e80e1ad8484443108efb227ee7fcedc82025-08-20T02:57:40ZengSciendoReal Estate Management and Valuation2300-52892024-12-0132410511610.2478/remav-2024-0039Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, PolandGnat Sebastian0Department Econometrics and Statistics, University of Szczecin, ul. Mickiewicza 64, 71-101Szczecin, PolandThe study explores the application of Partial Dependence Plots (PDP) in the analysis of real estate features. The study centers on a selected real estate market in Szczecin, Poland, aiming to highlight the efficacy of PDP in understanding and interpreting the complex relationships between various features and property prices. The primary objective is to showcase the potential of PDP in capturing the nuanced interactions between real estate attributes and their impact on market prices. The CatBoost model, known for its robust handling of categorical features and strong predictive capabilities, is employed as the machine learning algorithm for this analysis. The performance of this model will be compared against a traditional multiple linear regression model, providing insights into the advantages of leveraging advanced machine learning techniques in real estate analysis. Results obtained from the analysis will be presented and discussed, shedding light on the interpretability and accuracy of the CatBoost model compared to the traditional linear regression approach. The presentation will conclude with implications for real estate practitioners and researchers, emphasizing the potential for PDP to enhance the transparency and understanding of complex models in the real estate domain. This research contributes to the growing body of knowledge on the application of advanced machine learning techniques in real estate analysis.https://doi.org/10.2478/remav-2024-0039real estate market analysispartial dependence plotsc10r30
spellingShingle Gnat Sebastian
Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, Poland
Real Estate Management and Valuation
real estate market analysis
partial dependence plots
c10
r30
title Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, Poland
title_full Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, Poland
title_fullStr Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, Poland
title_full_unstemmed Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, Poland
title_short Determining the Influence of Real Estate Features on Prices with Partial Dependence Plots: A Case Study in Szczecin, Poland
title_sort determining the influence of real estate features on prices with partial dependence plots a case study in szczecin poland
topic real estate market analysis
partial dependence plots
c10
r30
url https://doi.org/10.2478/remav-2024-0039
work_keys_str_mv AT gnatsebastian determiningtheinfluenceofrealestatefeaturesonpriceswithpartialdependenceplotsacasestudyinszczecinpoland