Artificial neural network in property valuation: application framework and research trend

2017 ◽  
Vol 35 (5) ◽  
pp. 554-571 ◽  
Author(s):  
Rotimi Boluwatife Abidoye ◽  
Albert P.C. Chan
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Real Estate ◽  
Search Engines ◽  
Predictive Accuracy ◽  
Research Area ◽  
Research Trend ◽  
Content Type ◽  
Property Valuation ◽  
Property Markets

Purpose The predictive accuracy and reliability of artificial intelligence models, such as the artificial neural network (ANN), has led to its application in property valuation studies. However, a large percentage of such previous studies have focused on the property markets in developed economies, and at the same time, effort has not been put into documenting its research trend in the real estate domain. The purpose of this paper is to critically review the studies that adopted ANN for property valuation in order to present an application guide for researchers and practitioners, and also establish the trend in this research area. Design/methodology/approach Relevant articles were retrieved from online databases and search engines and were systematically analyzed. First, the background, the construction and the strengths and weaknesses of the technique were highlighted. In addition, the trend in this research area was established in terms of the country of origin of the articles, the year of publication, the affiliations of the authors, the sample size of the data, the number of the variables used to develop the models, the training and testing ratio, the model architecture and the software used to develop the models. Findings The analysis of the retrieved articles shows that the first study that applied ANN in property valuation was published in 1991. Thereafter, the technique received more attention from 2000. While a quarter of the articles reviewed emanated from the USA, the rest were conducted in mostly developed countries. Most of the studies were conducted by universities scholars, while very few industry practitioners participated in the research works. Also, the predictive accuracy of the ANN technique was reported in most of the papers reviewed, but a few reported otherwise. Research limitations/implications The articles that are not indexed in the search engines and databases searched and also not available in the public domain might not have been captured in this study. Practical implications The findings of this study reveal a gap between the valuation practice in developed and developing property markets and also the contributions of real estate practitioners and universities scholars to real estate research. A paradigm shift in the valuation practice in developing nations could lead to achieving a sustainable international valuation practice. Originality/value This paper presents the trend in this research area that could be useful to real estate researchers and practitioners in different property markets around the world. The findings of this study could also encourage collaboration between industry professionals and researchers domiciled in both developed and developing countries.

Artificial intelligence algorithms to predict Italian real estate market prices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luca Rampini ◽  
Fulvio Re Cecconi
Keyword(s):  
Neural Network ◽  
Artificial Intelligence ◽  
Artificial Neural Network ◽  
Real Estate ◽  
House Prices ◽  
Housing Prices ◽  
Real Estate Market ◽  
Content Type ◽  
Two Cities ◽  
Artificial Neural

PurposeThe assessment of the Real Estate (RE) prices depends on multiple factors that traditional evaluation methods often struggle to fully understand. Housing prices, in particular, are the foundations for a better knowledge of the Built Environment and its characteristics. Recently, Machine Learning (ML) techniques, which are a subset of Artificial Intelligence, are gaining momentum in solving complex, non-linear problems like house price forecasting. Hence, this study deployed three popular ML techniques to predict dwelling prices in two cities in Italy.Design/methodology/approachAn extensive dataset about house prices is collected through API protocol in two cities in North Italy, namely Brescia and Varese. This data is used to train and test three most popular ML models, i.e. ElasticNet, XGBoost and Artificial Neural Network, in order to predict house prices with six different features.FindingsThe models' performance was evaluated using the Mean Absolute Error (MAE) score. The results showed that the artificial neural network performed better than the others in predicting house prices, with a MAE 5% lower than the second-best model (which was the XGBoost).Research limitations/implicationsAll the models had an accuracy drop in forecasting the most expensive cases, probably due to a lack of data.Practical implicationsThe accessibility and easiness of the proposed model will allow future users to predict house prices with different datasets. Alternatively, further research may implement a different model using neural networks, knowing that they work better for this kind of task.Originality/valueTo date, this is the first comparison of the three most popular ML models that are usually employed when predicting house prices.

Achieving property valuation accuracy in developing countries: the implication of data source

2018 ◽  
Vol 11 (3) ◽  
pp. 573-585 ◽  
Author(s):  
Rotimi Boluwatife Abidoye ◽  
Albert P.C. Chan
Keyword(s):  
Real Estate ◽  
Data Bank ◽  
Developing Nations ◽  
Selling Price ◽  
Property Market ◽  
Data Set ◽  
Content Type ◽  
Transaction Data ◽  
Property Valuation ◽  
Property Markets

PurposeThe demand for accurate property value estimation by valuation report end users has led to a shift towards advanced property valuation modelling techniques in some property markets and these require a sizeable number of data set to function. In a situation where there is a lack of a centralised transaction data bank, scholars and practitioners usually collect data from different sources for analysis, which could affect the accuracy of property valuation estimates. This study aims to establish the suitability of different data sources that are reliable for estimating accurate property values.Design/methodology/approachThis study adopts the Lagos metropolis property market, Nigeria, as the study area. Transaction data of residential properties are collected from two sources, i.e. from real estate firms (selling price) and listing prices from an online real estate company. A portion of the collected data is fitted into the artificial neural network (ANN) model, which is used to predict the remaining property prices. The holdout sample data are predicted with the developed ANN models. Thereafter, the predicted prices and the actual prices are compared so as to establish which data set generates the most accurate property valuation estimates.FindingsIt is found that the listing data (listing prices) produced an encouraging mean absolute error (MAE), root mean square error (RMSE) and mean absolute percentage error (MAPE) values compared with the firms’ data (selling prices). An MAPE value of 26.93 and 29.96 per cent was generated from the listing and firms’ data, respectively. A larger proportion of the predicted listing prices had property valuation error of margin that is within the industry acceptable standard of between ±0 and 10 per cent, compared with the predicted selling prices. Also, a higher valuation accuracy was recorded in properties with lower values, compared with expensive properties.Practical implicationsThe opaqueness in real estate transactions consummated in developing nations could be attributed to why selling prices (data) could not produce more accurate valuation estimates in this study than listing prices. Despite the encouraging results produced using listing prices, there is still an urgent need to maintain a robust and quality property data bank in developing nations, as obtainable in most developed nations, so as to achieve a sustainable global property valuation practice.Originality/valueThis study does not investigate the relationship between listing prices and selling prices, which has been conducted in previous studies, but examines their suitability to improve property valuation accuracy in an emerging property market. The findings of this study would be useful in property markets where property transaction data bank is not available.

Dynamic prediction of Indian stock market: an artificial neural network approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Himanshu Goel ◽  
Narinder Pal Singh
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Stock Market ◽  
Institutional Investors ◽  
Time Series Data ◽  
Gradient Algorithm ◽  
Series Data ◽  
Content Type ◽  
Artificial Neural ◽  
Indian Stock Market

Purpose Artificial neural network (ANN) is a powerful technique to forecast the time series data such as the stock market. Therefore, this study aims to predict the Indian stock market closing price using ANNs. Design/methodology/approach The input variables identified from the literature are some macroeconomic variables and a global stock market factor. The study uses an ANN with Scaled Conjugate Gradient Algorithm (SCG) to forecast the Bombay Stock Exchange (BSE) Sensex. Findings The empirical findings reveal that the ANN model is able to achieve 93% accuracy in predicting the BSE Sensex closing prices. Moreover, the results indicate that the Morgan Stanley Capital International world index is the most important variable and the index of industrial production is the least important in predicting Sensex. Research limitations/implications The findings of the study have implications for the investors of all categories such as foreign institutional investors, domestic institutional investors and investment houses. Originality/value The novelty of this study lies in the fact that there are hardly any studies that use ANN to forecast the Indian stock market using macroeconomic indicators.

Improving the electromagnetic compatibility of electronic products by using response surface methodology and artificial neural network

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ching-Hsiang Chen ◽  
Chien-Yi Huang ◽  
Yan-Ci Huang
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Response Surface Methodology ◽  
Response Surface ◽  
Electromagnetic Compatibility ◽  
Heat Dissipation ◽  
Optimal Parameter ◽  
Content Type ◽  
Early Stages ◽  
Artificial Neural

Purpose The purpose of this study is to use the Taguchi Method for parametric design in the early stages of product development. electromagnetic compatibility (EMC) issues can be considered in the early stages of product design to reduce counter-measure components, product cost and labor consumption increases due to a number of design changes in the R&D cycle and to accelerate the R&D process. Design/methodology/approach The three EMC characteristics, including radiated emission, conducted emission and fast transient impulse immunity of power, are considered response values; control factors are determined with respect to the relevant parameters for printed circuit board and mechanical design of the product and peripheral devices used in conjunction with the product are considered as noise factors. The optimal parameter set is determined by using the principal component gray relational analysis in conjunction with both response surface methodology and artificial neural network. Findings Market specifications and cost of components are considered to propose an optimal parameter design set with the number of grounded screw holes being 14, the size of the shell heat dissipation holes being 3 mm and the arrangement angle of shell heat dissipation holes being 45 degrees, to dispose of 390 O filters on the noise source. Originality/value The optimal parameter set can improve EMC effectively to accommodate the design specifications required by customers and pass test regulations.

Integrating artificial neural network and imperialist competitive algorithm (ICA), to predict the energy consumption for land leveling

2017 ◽  
Vol 11 (4) ◽  
pp. 522-540 ◽  
Author(s):  
Isham Alzoubi ◽  
Mahmoud Delavar ◽  
Farhad Mirzaei ◽  
Babak Nadjar Arrabi
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Energy Consumption ◽  
Compressibility Factor ◽  
Imperialist Competitive Algorithm ◽  
Content Type ◽  
Competitive Algorithm ◽  
Land Leveling ◽  
Soil Compressibility ◽  
Artificial Neural

Purpose This work aims to determine the best linear model using an artificial neural network (ANN) with the imperialist competitive algorithm (ICA-ANN) and ANN to predict the energy consumption for land leveling. Design/methodology/approach Using ANN, integrating artificial neural network and imperialist competitive algorithm (ICA-ANN) and sensitivity analysis (SA) can lead to a noticeable improvement in the environment. In this research, effects of various soil properties such as embankment volume, soil compressibility factor, specific gravity, moisture content, slope, sand per cent and soil swelling index on energy consumption were investigated. Findings According to the results, 10-8-3-1, 10-8-2-5-1, 10-5-8-10-1 and 10-6-4-1 multilayer perceptron network structures were chosen as the best arrangements and were trained using the Levenberg–Marquardt method as the network training function. Sensitivity analysis revealed that only three variables, namely, density, soil compressibility factor and cut-fill volume (V), had the highest sensitivity on the output parameters, including labor energy, fuel energy, total machinery cost and total machinery energy. Based on the results, ICA-ANN had a better performance in the prediction of output parameters in comparison with conventional methods such as ANN or particle swarm optimization (PSO)-ANN. Statistical factors of root mean square error (RMSE) and correlation coefficient (R2) illustrate the superiority of ICA-ANN over other methods by values of about 0.02 and 0.99, respectively. Originality/value A limited number of research studies related to energy consumption in land leveling have been done on energy as a function of volume of excavation and embankment. However, in this research, energy and cost of land leveling are shown to be functions of all the properties of the land, including the slope, coefficient of swelling, density of the soil, soil moisture and special weight dirt. Therefore, the authors believe that this paper contains new and significant information adequate for justifying publication in an international journal.

Predicting the ground vibration induced by mine blasting using imperialist competitive algorithm

2018 ◽  
Vol 35 (4) ◽  
pp. 1774-1787 ◽  
Author(s):  
Katayoun Behzadafshar ◽  
Fahimeh Mohebbi ◽  
Mehran Soltani Tehrani ◽  
Mahdi Hasanipanah ◽  
Omid Tabrizi
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Ground Vibration ◽  
Imperialist Competitive Algorithm ◽  
Empirical Models ◽  
Coefficient Of Determination ◽  
Content Type ◽  
Competitive Algorithm ◽  
Spacing Ratio ◽  
Artificial Neural

PurposeThe purpose of this paper is to propose three imperialist competitive algorithm (ICA)-based models for predicting the blast-induced ground vibrations in Shur River dam region, Iran.Design/methodology/approachFor this aim, 76 data sets were used to establish the ICA-linear, ICA-power and ICA-quadratic models. For comparison aims, artificial neural network and empirical models were also developed. Burden to spacing ratio, distance between shot points and installed seismograph, stemming, powder factor and max charge per delay were used as the models’ input, and the peak particle velocity (PPV) parameter was used as the models’ output.FindingsAfter modeling, the various statistical evaluation criteria such as coefficient of determination (R2) were applied to choose the most precise model in predicting the PPV. The results indicate the ICA-based models proposed in the present study were more acceptable and reliable than the artificial neural network and empirical models. Moreover, ICA linear model with theR2 of 0.939 was the most precise model for predicting the PPV in the present study.Originality/valueIn the present paper, the authors have proposed three novel prediction methods based on ICA to predict the PPV. In the next step, we compared the performance of the proposed ICA-based models with the artificial neural network and empirical models. The results indicated that the ICA-based models proposed in the present paper were superior in terms of high accuracy and have the capacity to generalize.

Artificial neural network and regression models for prediction of sewing thread consumption for multilayered fabric assembly at lockstitch 301 seam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Vaseem Chavhan ◽  
M. Ramesh Naidu ◽  
Hayavadana Jamakhandi
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Regression Model ◽  
Regression Models ◽  
Network Models ◽  
Quadratic Regression ◽  
Neural Network Models ◽  
Content Type ◽  
Sewing Thread ◽  
Artificial Neural

Purpose This paper aims to propose the artificial neural network (ANN) and regression models for the estimation of the thread consumption at multilayered seam assembly stitched with lock stitch 301. Design/methodology/approach In the present study, the generalized regression and neural network models are developed by considering the fabric types: woven, nonwoven and multilayer combination thereof, with basic sewing parameters: sewing thread linear density, stitch density, needle count and fabric assembly thickness. The network with feed-forward backpropagation is considered to build the ANN, and the training function trainlm of MATLAB software is used to adjust weight and basic values according to the optimization of Levenberg Marquardt. The performance of networks measured in terms of the mean squared error and the layer output is set according to the sigmoid transfer function. Findings The proposed ANN and regression model are able to predict the thread consumption with more accuracy for multilayered seam assembly. The predictability of thread consumption from available geometrical models, regression models and industrial empirical techniques are compared with proposed linear regression, quadratic regression and neural network models. The proposed quadratic regression model showed a good correlation with practical thread consumption value and more accuracy in prediction with an overall 4.3% error, as compared to other techniques for given multilayer substrates. Further, the developed ANN network showed good accuracy in the prediction of thread consumption. Originality/value The estimation of thread consumed while stitching is the prerequisite of the garment industry for inventory management especially with the introduction of the costly high-performance sewing thread. In practice, different types of fabrics are stitched at multilayer combinations at different locations of the stitched product. The ANN and regression models are developed for multilayered seam assembly of woven and nonwoven fabric blend composition for better prediction of thread consumption.

Effective design and development of hybrid ABC-CSO-based capacitor placement with load forecasting based on artificial neural network

2019 ◽  
Vol 39 (5) ◽  
pp. 917-930 ◽  
Author(s):  
Sarika Sharma ◽  
Smarajit Ghosh
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Radial Distribution ◽  
Power Loss ◽  
Distribution Network ◽  
Load Forecasting ◽  
Distribution Networks ◽  
Content Type ◽  
Power Loss Reduction ◽  
Artificial Neural

Purpose This paper aims to develop a capacitor position in radial distribution networks with a specific end goal to enhance the voltage profile, diminish the genuine power misfortune and accomplish temperate sparing. The issue of the capacitor situation in electric appropriation systems incorporates augmenting vitality and peak power loss by technique for capacitor establishments. Design/methodology/approach This paper proposes a novel strategy using rough thinking to pick reasonable applicant hubs in a dissemination structure for capacitor situation. Voltages and power loss reduction indices of distribution networks hubs are shown by fuzzy enrollment capacities. Findings A fuzzy expert system containing a course of action of heuristic rules is then used to ascertain the capacitor position appropriateness of each hub in the circulation structure. The sizing of capacitor is solved by using hybrid artificial bee colony–cuckoo search optimization. Practical implications Finally, a short-term load forecasting based on artificial neural network is evaluated for predicting the size of the capacitor for future loads. The proposed capacitor allocation is implemented on 69-node radial distribution network as well as 34-node radial distribution network and the results are evaluated. Originality/value Simulation results show that the proposed method has reduced the overall losses of the system compared with existing approaches.

Neural network models for actual duration of Greek highway projects

2019 ◽  
Vol 17 (6) ◽  
pp. 1323-1339
Author(s):  
Magdalini Titirla ◽  
Georgios Aretoulis
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Correlation Analysis ◽  
Network Models ◽  
Neural Network Models ◽  
Tender Offer ◽  
Highway Projects ◽  
Content Type ◽  
Initial Cost ◽  
Actual Duration

Purpose This paper aims to examine selected similar Greek highway projects to create artificial neural network-based models to predict their actual construction duration based on data available at the bidding stage. Design/methodology/approach Relevant literature review is presented that highlights similar research approaches. Thirty-seven highway projects, constructed in Greece, with similar type of available data, were examined. Considering each project’s characteristics and the actual construction duration, correlation analysis is implemented, with the aid of SPSS. Correlation analysis identified the most significant project variables toward predicting actual duration. Furthermore, the WEKA application, through its attribute selection function, highlighted the most important subset of variables. The selected variables through correlation analysis and/or WEKA and appropriate combinations of these are used as input neurons for a neural network. Fast Artificial Neural Network (FANN) Tool is used to construct neural network models in an effort to predict projects’ actual duration. Findings Variables that significantly correlate with actual time at completion include initial cost, initial duration, length, lanes, technical projects, bridges, tunnels, geotechnical projects, embankment, landfill, land requirement (expropriation) and tender offer. Neural networks’ models succeeded in predicting actual completion time with significant accuracy. The optimum neural network model produced a mean squared error with a value of 6.96E-06 and was based on initial cost, initial duration, length, lanes, technical projects, tender offer, embankment, existence of bridges, geotechnical projects and landfills. Research limitations/implications The sample size is limited to 37 projects. These are extensive highway projects with similar work packages, constructed in Greece. Practical implications The proposed models could early in the planning stage predict the actual project duration. Originality/value The originality of the current study focuses both on the methodology applied (combination of Correlation Analysis, WEKA, FannTool) and on the resulting models and their potential application for future projects.

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