Towards a integrated measure of the location factor in the real estate valuation: the case of Mazatlan

Authors

  • Ivan Humaran Nahed
  • Josep Roca Cladera

DOI:

https://doi.org/10.5821/ace.v5i13.2499

Keywords:

Location factor, spatial distribution of real estate values, hedonic prices, geographical weighted regression.

Abstract

This paper focuses in the measurement of endogen and exogenous factors with incidence on the real estate values. The objective is to propose an integrated measure of the importance of localization on prices, by means of the “location factor” which includes both social, architectural and site attributes. Results suggest that residential prices rely on a binomial relationship between extrinsic and intrinsic elements, moreover the relative importance of each element is not stationary over the space, an such spatial variability can be interpreted as a particularity of each location.

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