IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i11p3110-d236600.html
   My bibliography  Save this article

Real Estate Investment Choices and Decision Support Systems

Author

Listed:
  • Vincenzo Del Giudice

    (Department of Industrial Engineering, University of Naples “Federico II”, Piazzale V. Tecchio, 80125 Naples, Italy)

  • Pierfrancesco De Paola

    (Department of Industrial Engineering, University of Naples “Federico II”, Piazzale V. Tecchio, 80125 Naples, Italy)

  • Torrieri Francesca

    (Department of Industrial Engineering, University of Naples “Federico II”, Piazzale V. Tecchio, 80125 Naples, Italy)

  • Peter J. Nijkamp

    (Jheronimus Academy of Data Science, ‘s-Hertogenbosh 5200–5249, The Netherlands
    Department of Spatial Economics, Vrije Universiteit Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands)

  • Aviad Shapira

    (Technion—Israel Institute of Technology, Faculty of Civil and Environmental Engineering, 3200003 Haifa, Israel)

Abstract

The evaluation of real estate assets is currently one of the main focal points addressed by territorial marketing strategies, with the view of developing high-performing or competitive cities. Given the complexity of the driving forces that determine the behavior of actors in a real estate market, it is necessary to identify a priori the factors that determine the competitive capacity of a city, to attract investments. The decision support system allows taking into account the key factors that determine the “attractiveness” of real estate investments in competitive urban contexts. This study proposes an integrated complex evaluation model that is able to map out and encapsulate the multidimensional spectrum of factors that shape the attractiveness of alternative real estate options. The conceptual–methodological approach is illustrated by an application of the model to a real-world case study of investment choice in the residential sector of Naples.

Suggested Citation

  • Vincenzo Del Giudice & Pierfrancesco De Paola & Torrieri Francesca & Peter J. Nijkamp & Aviad Shapira, 2019. "Real Estate Investment Choices and Decision Support Systems," Sustainability, MDPI, vol. 11(11), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:11:p:3110-:d:236600
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/11/3110/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/11/3110/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paolo Rosato & Anna Alberini & Valentina Zanatta & Margaretha Breil, 2010. "Redeveloping derelict and underused historic city areas: evidence from a survey of real estate developers," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(2), pages 257-281.
    2. Morano, Pierluigi & Tajani, Francesco & Locurcio, Marco, 2017. "GIS application and econometric analysis for the verification of the financial feasibility of roof-top wind turbines in the city of Bari (Italy)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 999-1010.
    3. Bruce Walker & Alex Marsh & Mark Wardman & Pat Niner, 2002. "Modelling Tenants' Choices in the Public Rented Sector: A Stated Preference Approach," Urban Studies, Urban Studies Journal Limited, vol. 39(4), pages 665-688, April.
    4. Hoang Huu Phe & Patrick Wakely, 2000. "Status, Quality and the Other Trade-off: Towards a New Theory of Urban Residential Location," Urban Studies, Urban Studies Journal Limited, vol. 37(1), pages 7-35, January.
    5. Bhat, Chandra R. & Guo, Jessica Y., 2007. "A comprehensive analysis of built environment characteristics on household residential choice and auto ownership levels," Transportation Research Part B: Methodological, Elsevier, vol. 41(5), pages 506-526, June.
    6. J. D. Hunt, 2010. "Stated Preference Examination of Factors Influencing Residential Attraction," Advances in Spatial Science, in: Francesca Pagliara & John Preston & David Simmonds (ed.), Residential Location Choice, pages 21-59, Springer.
    7. Earnhart, Dietrich, 2002. "Combining Revealed and Stated Data to Examine Housing Decisions Using Discrete Choice Analysis," Journal of Urban Economics, Elsevier, vol. 51(1), pages 143-169, January.
    8. J. Cooper & T. Ryley & A. Smyth, 2001. "Energy Trade-offs and Market Responses in Transport and Residential Land-use Patterns: Promoting Sustainable Development Policy," Urban Studies, Urban Studies Journal Limited, vol. 38(9), pages 1573-1588, August.
    9. Donggen Wang & Si-Ming Li, 2004. "Housing Preferences in a Transitional Housing System: The Case of Beijing, China," Environment and Planning A, , vol. 36(1), pages 69-87, January.
    10. Vincenzo Del Giudice & Francesca Salvo & Pierfrancesco De Paola, 2018. "Resampling Techniques for Real Estate Appraisals: Testing the Bootstrap Approach," Sustainability, MDPI, vol. 10(9), pages 1-16, August.
    11. Alan W. Evans, 1973. "The Economics of Residential Location," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01889-5.
    12. Domenico Enrico Massimo, 2009. "Valuation of urban sustainability and building energy efficiency: a case study," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 12(2/3/4), pages 223-247.
    13. Fabiana Forte & Valentina Antoniucci & Pierfrancesco De Paola, 2018. "Immigration and the Housing Market: The Case of Castel Volturno, in Campania Region, Italy," Sustainability, MDPI, vol. 10(2), pages 1-17, January.
    14. Benedetto Manganelli, 2015. "Real Estate Investing," Springer Books, Springer, edition 127, number 978-3-319-06397-3, December.
    15. Patricio E. Pérez & Francisco J. Martínez & Juan de Dios Ortúzar, 2003. "Microeconomic Formulation and Estimation of a Residential Location Choice Model: Implications for the Value of Time," Journal of Regional Science, Wiley Blackwell, vol. 43(4), pages 771-789, November.
    16. Jae Hong Kim & Francesca Pagliara & John Preston, 2005. "The Intention to Move and Residential Location Choice Behaviour," Urban Studies, Urban Studies Journal Limited, vol. 42(9), pages 1621-1636, August.
    17. Paolo Rosato & Anna Alberini & Valentina Zanatta & Margaretha Breil, 2009. "Redeveloping Derelict and Underused Historical City Areas: Evidence from a Survey�of�Real�Estate�Developers," Working Papers 2009_02, Department of Economics, University of Venice "Ca' Foscari".
    18. Forman, Ernest & Peniwati, Kirti, 1998. "Aggregating individual judgments and priorities with the analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 108(1), pages 165-169, July.
    19. Susilo, Yusak O. & Williams, Katie & Lindsay, Morag & Dair, Carol, 2012. "The influence of individuals’ environmental attitudes and urban design features on their travel patterns in sustainable neighborhoods in the UK," Working papers in Transport Economics 2012:1, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    20. Jae-Hong Kim & Francesca Pagliara & John Preston, 2003. "An Analysis of Residential Location Choice Behaviour in Oxfordshire, Uk: A Combined Stated Preference Approach," International Review of Public Administration, Taylor & Francis Journals, vol. 8(1), pages 103-114, July.
    21. Wheaton, William C., 1976. "On the optimal distribution of income among cities," Journal of Urban Economics, Elsevier, vol. 3(1), pages 31-44, January.
    22. Sener, Ipek N. & Pendyala, Ram M. & Bhat, Chandra R., 2011. "Accommodating spatial correlation across choice alternatives in discrete choice models: an application to modeling residential location choice behavior," Journal of Transport Geography, Elsevier, vol. 19(2), pages 294-303.
    23. Vincenzo Del Giudice & Pierfrancesco De Paola & Fabiana Forte & Benedetto Manganelli, 2017. "Real Estate Appraisals with Bayesian Approach and Markov Chain Hybrid Monte Carlo Method: An Application to a Central Urban Area of Naples," Sustainability, MDPI, vol. 9(11), pages 1-17, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shinan Zhao & Haiyan Xu, 2019. "A Novel Preference Elicitation Technique Based on a Graph Model and Its Application to a Brownfield Redevelopment Conflict in China," IJERPH, MDPI, vol. 16(21), pages 1-14, October.
    2. Vincenzo Del Giudice & Pierfrancesco De Paola & Paolo Bevilacqua & Alessio Pino & Francesco Paolo Del Giudice, 2020. "Abandoned Industrial Areas with Critical Environmental Pollution: Evaluation Model and Stigma Effect," Sustainability, MDPI, vol. 12(13), pages 1-34, June.
    3. Marja Elsinga & Joris Hoekstra & Mohamad Sedighi & Behnam Taebi, 2020. "Toward Sustainable and Inclusive Housing: Underpinning Housing Policy as Design for Values," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    4. Giuliano Marella & Valentina Antoniucci, 2019. "Time Overrun in Public Works—Evidence from North-East Italy," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    5. Hamidreza Rabiei-Dastjerdi & Gavin McArdle, 2021. "Novel Exploratory Spatiotemporal Analysis to Identify Sociospatial Patterns at Small Areas Using Property Transaction Data in Dublin," Land, MDPI, vol. 10(6), pages 1-16, May.
    6. Francesca Torrieri & Marina Fumo & Michele Sarnataro & Gigliola Ausiello, 2019. "An Integrated Decision Support System for the Sustainable Reuse of the Former Monastery of “Ritiro del Carmine” in Campania Region," Sustainability, MDPI, vol. 11(19), pages 1-21, September.
    7. Wei-Ling Tsou & Chen-Yi Sun, 2021. "Consumers’ Choice between Real Estate Investment and Consumption: A Case Study in Taiwan," Sustainability, MDPI, vol. 13(21), pages 1-13, October.
    8. Cyprian Chwiałkowski & Adam Zydroń, 2021. "Socio-Economic and Spatial Characteristics of Wielkopolski National Park: Application of the Hedonic Pricing Method," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    9. Adriano Bisello, 2020. "Assessing Multiple Benefits of Housing Regeneration and Smart City Development: The European Project SINFONIA," Sustainability, MDPI, vol. 12(19), pages 1-28, September.
    10. Vincenzo Del Giudice & Pierfrancesco De Paola & Francesco Paolo Del Giudice, 2020. "COVID-19 Infects Real Estate Markets: Short and Mid-Run Effects on Housing Prices in Campania Region (Italy)," Social Sciences, MDPI, vol. 9(7), pages 1-18, July.
    11. Justyna Kozłowska & Marco Antônio Benvenga & Irenilza de Alencar Nääs, 2022. "Investment Risk and Energy Security Assessment of European Union Countries Using Multicriteria Analysis," Energies, MDPI, vol. 16(1), pages 1-28, December.
    12. Pasquale De Toro & Francesca Nocca & Andrea Renna & Luigi Sepe, 2020. "Real Estate Market Dynamics in the City of Naples: An Integration of a Multi-Criteria Decision Analysis and Geographical Information System," Sustainability, MDPI, vol. 12(3), pages 1-24, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Del Giudice, V. & De Paola, P. & Torrieri, F. & Pagliari, F., 2009. "A decision support system for real estate investment choice," Serie Research Memoranda 0010, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Jae Hong Kim & Francesca Pagliara & John Preston, 2005. "The Intention to Move and Residential Location Choice Behaviour," Urban Studies, Urban Studies Journal Limited, vol. 42(9), pages 1621-1636, August.
    3. Kamruzzaman, Md. & Baker, Douglas & Washington, Simon & Turrell, Gavin, 2013. "Residential dissonance and mode choice," Journal of Transport Geography, Elsevier, vol. 33(C), pages 12-28.
    4. Sener, Ipek N. & Pendyala, Ram M. & Bhat, Chandra R., 2011. "Accommodating spatial correlation across choice alternatives in discrete choice models: an application to modeling residential location choice behavior," Journal of Transport Geography, Elsevier, vol. 19(2), pages 294-303.
    5. Caplan, Arthur J. & Akhundjanov, Sherzod B. & Toll, Kristopher, 2021. "Measuring heterogeneous preferences for residential amenities," Regional Science and Urban Economics, Elsevier, vol. 87(C).
    6. Aguiléra, Anne & Voisin, Marion, 2014. "Urban form, commuting patterns and CO2 emissions: What differences between the municipality’s residents and its jobs?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 243-251.
    7. Marco Locurcio & Pierluigi Morano & Francesco Tajani & Felicia Di Liddo, 2020. "An Innovative GIS-Based Territorial Information Tool for the Evaluation of Corporate Properties: An Application to the Italian Context," Sustainability, MDPI, vol. 12(14), pages 1-29, July.
    8. Diana Kusumastuti & Alan Nicholson, 2018. "Mixed-use development in Christchurch, New Zealand: Do you want to live there?," Urban Studies, Urban Studies Journal Limited, vol. 55(12), pages 2682-2702, September.
    9. Anna Alberini & Alberto Longo & Patrizia Riganti, 2006. "Using Surveys to Compare the Public’s and Decisionmakers’ Preferences for Urban Regeneration: The Venice Arsenale," Working Papers 2006.137, Fondazione Eni Enrico Mattei.
    10. Alberini, Anna & Longo, Alberto & Riganti, Patrizia, 2006. "Using Surveys to Compare the Public's and Decision-makers' Preferences for Urban Regeneration: The Venice Arsenale," Sustainability Indicators and Environmental Valuation Working Papers 12221, Fondazione Eni Enrico Mattei (FEEM).
    11. Guerra, Erick, 2015. "The geography of car ownership in Mexico City: a joint model of households’ residential location and car ownership decisions," Journal of Transport Geography, Elsevier, vol. 43(C), pages 171-180.
    12. Rezaei, Ali & Patterson, Zachary, 2018. "Preference stability in household location choice: Using cross-sectional data from three censuses," Research in Transportation Economics, Elsevier, vol. 67(C), pages 44-53.
    13. Sebastian Scheuer & Dagmar Haase & Annegret Haase & Nadja Kabisch & Manuel Wolff & Nina Schwarz & Katrin Großmann, 2020. "Combining tacit knowledge elicitation with the SilverKnETs tool and random forests – The example of residential housing choices in Leipzig," Environment and Planning B, , vol. 47(3), pages 400-416, March.
    14. Jia Guo & Tao Feng & Harry J. P. Timmermans, 2020. "Modeling co-dependent choice of workplace, residence and commuting mode using an error component mixed logit model," Transportation, Springer, vol. 47(2), pages 911-933, April.
    15. Sigal Kaplan & Shlomo Bekhor & Yoram Shiftan, 2011. "Development and estimation of a semi-compensatory residential choice model based on explicit choice protocols," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 51-80, August.
    16. Aline Chiabai & Stephen Platt & Wadim Strielkowski, 2014. "Eliciting Users' Preferences for Cultural Heritage and Tourism-Related E-Services: A Tale of Three European Cities," Tourism Economics, , vol. 20(2), pages 263-277, April.
    17. Agustin Rodriguez-Bachiller, 1986. "Discontiguous Urban Growth and the New Urban Economics: A Review," Urban Studies, Urban Studies Journal Limited, vol. 23(2), pages 79-104, April.
    18. Bhat, Chandra R., 2015. "A comprehensive dwelling unit choice model accommodating psychological constructs within a search strategy for consideration set formation," Transportation Research Part B: Methodological, Elsevier, vol. 79(C), pages 161-188.
    19. Yu, Biying & Zhang, Junyi & Li, Xia, 2017. "Dynamic life course analysis on residential location choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 104(C), pages 281-292.
    20. Traoré, Sidnoma, 2019. "Residential location choice in a developing country: What matter? A choice experiment application in Burkina Faso," Forest Policy and Economics, Elsevier, vol. 102(C), pages 1-9.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:11:p:3110-:d:236600. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.