Geoscience Methods in Real Estate Market Analyses Subjectivity Decrease

Abstract

Real estate management, including real estate market analysis, is part of a so-called geosystem. In recent years, the popularity of creating various types of systems and automatic solutions in real estate management, including those related to property classification and valuation, has been growing in the world, mainly to reduce the impact of human subjectivity, to increase the scope of analyses and reduce research time. A very important fact that should be underlined is that properties are strongly related to geolocation (space) and strongly determine it. Authors proposed in the paper solutions that highlight implementation of geoscience and “geo-approach” combined with fuzzy logic methods that allow to decrease subjectivity in property analyses and diminish uncertainty in decision making process. The proposed methodology involves three main problematic components of decision support system in property investment analyses development with the use of geo-technologies such as: determination of the database model; elaboration geo-property-zones with geoprocessing activities; identification of homogeneous group of properties transactions. The influence of spatial decision factor determined in the study lead to objective and precise calculation of value differentiation from 22 to 43% depending on the property’s remoteness to the sea.