Apartments Price Estimation using Linear and Geographically Weighted Regression (Case Study: District six of Tehran city)

The house is one of the main requirements of human to achieve comfort and relaxation. It plays an essential role in life’s quality and is an index of welfare in a society. According to the central bank of Iran reports, the housing share in households has increased by more than 30 percent from 2008 to 2017. This rate increased by 43 percent in 2017. These values are also higher for lower deciles. In 2016, 78% of low-income households’ income was spent on housing and food. Therefore, these families unable to enjoy urban amenities. Also, due to the annual movements which cause many problems of hiring and stresses, the priority of citizens is house purchasing. Therefore, families search in the city to find suitable apartments according to their needs and budget. Awareness of property prices is important for both homeowners and customers. If buyers know the prices of apartments in the area, not only find the most suitable unit based on their needs and budget but may not also be defrauded by some individuals. Researches show that residents of each area look for apartments around the previous areas for purchase or rental of residential units. The price information gives people more freedom and confidence to find the best cases, and save time and money instead of limit themselves to the surrounding area.