In recent years big financial institutions are interested in creating and maintaining property valuation models. The main objective is to use reliable historical data in order to be able to forecast the price of a new property in a comprehensive manner and provide some indication for the uncertainty around this forecast. In this paper we develop an automatic valuation model (AVM) for property valuation using a large database of historical prices from Greece.
The Greek property market is an inefficient, nonhomogeneous market, still at its infancy and governed by lack of information. As a result modelling the Greek real estate market is a very interesting and challenging problem.