Vol. 87 (2025)
Original Articles - Urban, Land, Environmental Appraisal and Economics

Property valuation: a comparative analysis of innovative market approach methods

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  • Francesco Tajani,
  • Pierfrancesco De Paola,
  • Giuseppe Cerullo
Francesco Tajani
Department of Architecture and Design, Sapienza University of Rome, Rome, Italy
Pierfrancesco De Paola
Department of Industrial Engineering, University of Naples Federico II, Naples, Italy
Giuseppe Cerullo
Department of Architecture and Design, Sapienza University of Rome, Rome, Italy
DOI: https://doi.org/10.36253/aestim-17322

Published 2025-10-30

Keywords

  • property valuation methods,
  • real estate market value,
  • similarity coefficients,
  • reliability coefficients,
  • goal programming,
  • maximum entropy principle,
  • Lagrange multipliers
    • ...More
    Less

Copyright (c) 2025 Francesco Tajani, Pierfrancesco De Paola, Giuseppe Cerullo

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

This research aims to illustrate and implement innovative methods for property valuation, by comparing their respective outcomes in terms of statistical accuracy and empirical reliability. In particular, the paper describes and compares three market approach methods through an application to a case study located in the city of Rome (Italy), in order to outline their ability to rationalise the assessment in dynamic contexts and minimise the professional valuer’s subjectivity. This work represents a new reference for valuers, in order to refine their estimates and guarantee transparency in their use, avoiding the risk of black boxes that frequently characterizes mass appraisal techniques (e.g. neural networks, genetic algorithms, multiple regressions, etc.), for which constant updating of the database originating the price functions would be necessary to appropriately describe the current market conditions.

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