Examining House Price Differentiation in Ankara Using Hedonic Analysis

Abstract

House prices in Ankara vary according to locations. In neighborhoods wherein the house process are relatively lower, small house builders target the middle income groups; however, other neighborhoods have a great demand for more luxury housing projects along with high house prices. This study aims to investigate the house prices in Ankara drawing on the results of case studies that use different analyses targeting eight central districts. First, data was collected from the largest real estate website in Turkey providing information on dwelling units on sale between September 2015 and December 2015 in the different neighborhoods of the districts; the collected data was hedonically analyzed. The analysis results reveal that the price of dwelling units is significantly related to the size, number of bathrooms, number of stories, number of rooms, age, location (whether or not the dwelling units is located in Çankaya, Etimesgut, Gölbaşı or Keçiören), type, and heating system of the dwelling unit. Second, a spatial analysis was performed to identify whether the success of price estimation of hedonic analysis differ based on neighborhoods. Results of this analysis show that price estimation of the hedonic analysis best fit the house prices in Keçiören neighborhood; however, it was less successful in predicting the prices for the neighborhoods in Çankaya District.

Keywords

• ankara
• hedonic analysis
• house price.