Application of some multidimensional comparative analysis methods to investigate secondary real estate market in Warsaw

Abstract

The paper aims at application of multidimensional comparative analysis methods to investigating Warsaw real estate secondary market. The research is based on a data base covering more than 300 apartments offered in the fourth quarter of 2010. There were considered basic characteristics such as the price per 1 square meter, apartment area, number of rooms, floor the apartment is located on, number of storeys in a building and the year of building completion. Application of two alternative methods: Ward’s method and k-means method allowed to divide the set of apartments into 5 clusters. The results obtained may be interesting for both individual investors and real estate agents as they help to filter the set of apartments and to find offers similar to the apartment with a prespecified characteristics.