Applied aspects of time series models for predicting residential property prices in Bulgaria
Open Access
- 4 October 2022
- journal article
- Published by LLC CPC Business Perspectives in Problems and Perspectives in Management
- Vol. 20 (3), 588-603
- https://doi.org/10.21511/ppm.20(3).2022.46
Abstract
Accurate housing price forecasts play a critical role in balancing supply and demand in the residential real estate market, as well as in achieving the goals of various stakeholders – buyers, investors, construction contractors, public administration, real estate agencies, special investment purpose companies, etc. The present study aims to investigate the relationship between specific predictors and build a suitable model for forecasting housing prices in Bulgaria. In this regard, a study was conducted on transactions with residential real estate in the city of Sofia for the period from the first quarter of 2016 to the fourth quarter of 2021. The ARIMA model is used in the development to predict the values of the variables. Eight models are tested for the researched factors (24 in total). On this basis, the price per square meter of residential property was predicted, including estimated values from the ARIMA model for the parameters involved in the regression equation. The result showed that there is a strong relationship between the analyzed predictors and the studied variable – price per square meter of housing. The tested models are adequate and the statistical requirements for forecasting the prices of residential properties in Bulgaria are complied.Keywords
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