Intrinsic and extrinsic attributes in real estate pricing: Insights for sustainable urban planning strategies

Abstract

The research explores the relationship between extrinsic and intrinsic factors and housing prices in order to determine their effect in price formation in the housing market and consequently also on urban planning. Based on a sample of 3683 dwellings in Rome, the urban and structural variables influencing supply prices have been analyzed. The methodology used combined web scrapping, geo-referencing of dwellings, decision tree analysis and the use of variance analysis models in order to obtain scalable results for other European cities. The results describe a situation regarding the formation of asking prices in the real estate market, which outlines the relationship between primary real estate properties and public services considered essential for peoples quality of life. These findings provide insights that contribute to optimizing the options available to decision-makers in urban planning strategies and the real estate market.