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Real Estate Appraisal: A Double Perspective Data Envelopment Analysis Approach

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Abstract

This paper proposes a new methodology for the assessment of the value range for real estate units. The theoretical basis of the methodology is built on the Data Envelopment Analysis—DEA approach, which has its original concept adapted to the case where the units under assessment consist of transactions among sellers and buyers. The proposed approach—christened Double Perspective-Data Envelopment Analysis (DP-DEA)—is applied to a database comprising the prices and features of the units under assessment. It is shown that the DP-DEA presents some specific advantages when compared to the usual regression analysis method employed in real estate value assessment.

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Authors and Affiliations

  1. Production Engineering Program, Federal University of Rio de Janeiro, Rua Belisário Távora 80 ap 506 Laranjeiras, Rio de Janeiro, RJ, Brazil

    Marcos Pereira Estellita Lins

  2. CAIXA ECONOMICA FEDERAL, Brazilian Federal Savings Bank, Brazil

    Luiz Fernando de Lyra Novaes

  3. Energy Planning Program, COPPE, Federal University of Rio de Janeiro, Brazil

    Luiz Fernando Loureiro Legey

Authors
  1. Marcos Pereira Estellita Lins
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  2. Luiz Fernando de Lyra Novaes
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  3. Luiz Fernando Loureiro Legey
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Correspondence to Marcos Pereira Estellita Lins.

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Lins, M.P.E., Novaes, L.F.d.L. & Legey, L.F.L. Real Estate Appraisal: A Double Perspective Data Envelopment Analysis Approach. Ann Oper Res 138, 79–96 (2005). https://doi.org/10.1007/s10479-005-2446-1

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  • DOI: https://doi.org/10.1007/s10479-005-2446-1

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