TS 5E – Valuation Models

Data derived from property markets have spatial character, no doubt about it, thus treating them with methods taking into account property location and so called “neighborhood influence “ seem to be natural. In this paper we present a step by step algorithm for two of many geostatistical methods of spatial prediction which can find their application in property market analysis. As an exemplification of theoretical consideration, authors calculated particular problem and made it available on the website. It is worth noting that carrying out all the computations without dedicated software is very time consuming and might cause a headache. Authors implemented all the algorithms in one computer application and encourage for testing it simultaneously waiting for constructive critics