Housing Price Prediction - Machine Learning and Geostatistical Methods

Machine learning algorithms are increasingly often used to predict real estate prices because they generate more accurate results than conventional statistical or geostatistical methods. This study proposes a methodology for incorporating information about the spatial distribution of residuals, esti...

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Main Authors: Cellmer Radosław, Kobylińska Katarzyna
Format: Article
Language:English
Published: Sciendo 2025-03-01
Series:Real Estate Management and Valuation
Subjects:
Online Access:https://doi.org/10.2478/remav-2025-0001
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author Cellmer Radosław
Kobylińska Katarzyna
author_facet Cellmer Radosław
Kobylińska Katarzyna
author_sort Cellmer Radosław
collection DOAJ
description Machine learning algorithms are increasingly often used to predict real estate prices because they generate more accurate results than conventional statistical or geostatistical methods. This study proposes a methodology for incorporating information about the spatial distribution of residuals, estimated by kriging, into selected machine learning algorithms. The analysis was based on apartment prices quoted in the Polish capital of Warsaw. The study demonstrated that machine learning combined with geostatistical methods significantly improves the accuracy of housing price predictions. Local factors that influence housing prices can be directly incorporated into the model with the use of dedicated maps.
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spelling doaj-art-e94037ea18bf4579acfbe61d56a9bfaa2025-08-20T02:41:37ZengSciendoReal Estate Management and Valuation2300-52892025-03-0133111010.2478/remav-2025-0001Housing Price Prediction - Machine Learning and Geostatistical MethodsCellmer Radosław0Kobylińska Katarzyna11Department of Real Estate and Urban Studies, University of Warmia and Mazury in Olsztyn, Prawochenskiego 15, 10-724Olsztyn, Poland1Department of Real Estate and Urban Studies, University of Warmia and Mazury in Olsztyn, Prawochenskiego 15, 10-724Olsztyn, PolandMachine learning algorithms are increasingly often used to predict real estate prices because they generate more accurate results than conventional statistical or geostatistical methods. This study proposes a methodology for incorporating information about the spatial distribution of residuals, estimated by kriging, into selected machine learning algorithms. The analysis was based on apartment prices quoted in the Polish capital of Warsaw. The study demonstrated that machine learning combined with geostatistical methods significantly improves the accuracy of housing price predictions. Local factors that influence housing prices can be directly incorporated into the model with the use of dedicated maps.https://doi.org/10.2478/remav-2025-0001machine learninghousing pricesgeostatisticsc45c53r20r32
spellingShingle Cellmer Radosław
Kobylińska Katarzyna
Housing Price Prediction - Machine Learning and Geostatistical Methods
Real Estate Management and Valuation
machine learning
housing prices
geostatistics
c45
c53
r20
r32
title Housing Price Prediction - Machine Learning and Geostatistical Methods
title_full Housing Price Prediction - Machine Learning and Geostatistical Methods
title_fullStr Housing Price Prediction - Machine Learning and Geostatistical Methods
title_full_unstemmed Housing Price Prediction - Machine Learning and Geostatistical Methods
title_short Housing Price Prediction - Machine Learning and Geostatistical Methods
title_sort housing price prediction machine learning and geostatistical methods
topic machine learning
housing prices
geostatistics
c45
c53
r20
r32
url https://doi.org/10.2478/remav-2025-0001
work_keys_str_mv AT cellmerradosław housingpricepredictionmachinelearningandgeostatisticalmethods
AT kobylinskakatarzyna housingpricepredictionmachinelearningandgeostatisticalmethods