The model for determination the market value of residential properties based on their surface

Abstract

The purpose of this paper is to propose a model for determining the market value of residential properties (apartments) based on their surface. Every residential property can be viewed as consisting of a bundle of attributes, some related to the physical features of the property, some related to the location and a third group related to the building design. One of the attributes of the building design is the surface of the property. Currently, the sale market of apartments makes differentiation in value (sales at half of value) only for large balconies (terraces) surfaces, while the surface in itself can be divided into primary surface (living room, bedroom) and ancillary surface (corridor, bathroom, balcony). The distinguishing feature of the apartments built in the last 20-year is the consumption of a considerable surface of the total area for the ancillary facilities. This paper, through a case study in Tirana City tends to provide a model of inclusion differently in the value of primary and ancillary surfaces.