Żanna Stręk

In real estate appraisal, especially of residential buildings, one of the primary evaluation parameters is the property’s usable area. When determining the property price, Polish appraisers use data from comparable transactions included in the Real Estate Price Register (REPR), which is highly incomplete, especially regarding properties’ usable areas. This incompleteness renders the identification of comparable transactions challenging and may lead to incorrect prediction of the property price. We address this challenge by applying machine learning methods to estimate the usable area of buildings with gable roofs based only on their topographic data, which is widely available in Poland in the Database of Topographic Objects (BDOT10k) of Light Detection and Ranging (LiDAR) origin. We show that three features are enough to make accurate predictions of the usable area: the covered area, the building’s height, and the number of stories optionally. A neural network trained on buildings from architectural bureaus reached a 4% median percentage error on the same source and 15% on the real buildings from the city of Koszalin, Poland. Therefore, the proposed method can be applied by appraisers to estimate the usable area of buildings with known transaction prices and solve the problem of finding comparable properties for appraisal.