A model to select attributes of a residential building that maximizes sales price

Abstract

The objective of the work was to build a model to select the attributes that a new apartment building project and the apartments in it should have in order to maximize the incomes when it is commercialized. The design model defines the surface, the amount of units and the projected unitprice for each apartment layout. For the real estate project it defines its characteristics such as apartment layout and their additional attributes. The prices of the apartments depend on a combination of location attributes, typical of the project and of the apartments. These relations between attributes and prices were obtained from hedonic models applied to new buildings and their corresponding apartments layout that were offered in the city of Concepción. The model to design the real estate project is an optimization model that maximizes the profit of the project, allowing the attribute variables to be adjusted, and delimited according to physical, legal, architectural and economic restrictions. By applying the design model, the location variables correspond to those defined by the real estate agent to locate the project; therefore, they are set by him, as well as the field surface for the project. The design model only considers as output variables those related to the urbanisation of the project and those of the apartments. The optimization model optimizes buildings per floors, which could have one or more apartment layouts.