This paper presents an application of multi-criteria evaluation to select and weight property characteristics in order to estimate the most probable market value of a large public property portfolio. The methodology proposed, based on the involvement of key actors of the decision process, aim to support the decision process of value judg-ment in a more flexible way overcoming the difficulty presented by econometric model due to the scarcity of a large sample data. In particular the model proposed is referred to Adjustment grid method and multi-criteria analysis to reach a market value that reflect the intrinsic characteristic of the property assets and the market condition. The methodology proposed is tested on an interesting case study on the market value estimation of a large property portfolio owned by the Banca D’Italia. The application has shown that this type of procedures can be a reliable tool to ana-lyse the value creation functions within the real estate market segments and solve estimation problems concerning large real estate assets on which analytical estimates and regression models are hardly applicable.

A mass appraisal model based on multi-criteria evaluation: An application to the property portfolio of the bank of Italy

Torrieri, Francesca
;
Oppio, Alessandra
2019

Abstract

This paper presents an application of multi-criteria evaluation to select and weight property characteristics in order to estimate the most probable market value of a large public property portfolio. The methodology proposed, based on the involvement of key actors of the decision process, aim to support the decision process of value judg-ment in a more flexible way overcoming the difficulty presented by econometric model due to the scarcity of a large sample data. In particular the model proposed is referred to Adjustment grid method and multi-criteria analysis to reach a market value that reflect the intrinsic characteristic of the property assets and the market condition. The methodology proposed is tested on an interesting case study on the market value estimation of a large property portfolio owned by the Banca D’Italia. The application has shown that this type of procedures can be a reliable tool to ana-lyse the value creation functions within the real estate market segments and solve estimation problems concerning large real estate assets on which analytical estimates and regression models are hardly applicable.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11588/742935
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