Abstract
This paper presents an application of multicriteria evaluation to select the property characteristics in order to estimate the most probable market value of a large public property portfolio. The methodology proposed, based on the involvement of key actors of the decision process, aim to support the decision process of value judgment in a more flexible way overcoming the difficulty presented by econometric models due to the scarcity of a large sample data; it is referred to a multi-parameter estimated model and tested on a large property portfolio owned by the Bank of Italy. The application has shown that this type of procedures can be a reliable tool to analyse the real estate values and solve estimation problems concerning consistent real estate assets on which analytical methods and regression models are hardly applicable due to the scarcity of data.
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Notes
- 1.
The value was reported in the documents attached to the Financial Statement of the Bank of Italy at 31 December 2012.
- 2.
The value of the coefficient KM can vary from 0,9 (worst market conditions) to 1,1 (better market conditions).
- 3.
Within the AHP - a multicriteria technique - the pair ways comparison is used to define the weights of the criteria and the impact of each solutions on the criteria.
- 4.
The original scale of measurement established by Saaty vary from 1 to 9.
- 5.
The values are assigned to a real estate properties located in Rome.
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Sdino, L., Rosasco, P., Torrieri, F., Oppio, A. (2019). A Mass Appraisal Model Based on Multi-criteria Evaluation: An Application to the Property Portfolio of the Bank of Italy. In: Calabrò, F., Della Spina, L., Bevilacqua, C. (eds) New Metropolitan Perspectives. ISHT 2018. Smart Innovation, Systems and Technologies, vol 100. Springer, Cham. https://doi.org/10.1007/978-3-319-92099-3_57
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