Real Estate values in Low Dynamic Markets: proximity effects

Abstract

The identification of residential submarkets is of great interest for the correct planning of housing policy. In addition, in recent years increasing demand for more detailed spatial statistical information that requires increasingly specific territorial subsets has emerged. The aim of this paper is to define an aggregation of municipalities characterized by homogeneity in terms of trends and levels of house prices. The empirical analysis is carried out in a first phase using tools of descriptive statistics, global and local econometric spatial indices, and regressive techniques to create a set of useful indicators. In the second phase, a clustering method is applied to define the final groups.

Keywords

• residential submarkets
• real estate prices
• cluster analysis
• spatial autocorrelation