Dr. Antonis Alexandridis together with Dimitrios Karlis (Athens University of Economics and Business), Dimtrios Papastamos (Eurobank Property Serivices S.A.) and Dimitros Andritsos (Eurobank Property Serivices S.A.) has published a paper titled “Real Estate valuation and forecasting in non-homogeneous markets: A case study in Greece during the financial crisis” in the Journal of the Operational Research Society (3* ABS).
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 the authors have developed an automatic valuation model (AVM) for property valuation using a large database of historical prices from Greece.
The Greek property market is an inefficient, non-homogeneous 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.
The results of this study can potentially have significant policy and fiscal implications. It can help both the government and the public sectors like commercial banks. To start with, it can help the central and local governments in planning and implementing their fiscal policies, both at micro and macro level and can promote economic and development sustainability. Second, it can have significant impact in operational efficiency of commercial banks. The proposed AVM can be adapted in applications such as mortgage quality control or appraisal review, loss mitigation analysis, portfolio valuation and appraisal process redesign.