Application of fuzzy regression model for real estate price prediction

Abstract

Many studies have been conducted for modeling the underlying non-linear relationship between pricing attributes and price of property to forecast the housing sales prices. In recent years, more advanced non-linear modeling techniques such as Artificial Neural Networks (ANN) and Fuzzy Inference Systems (FIS) have emerged as effective techniques to predict the house prices. In this paper, we propose a fuzzy least-squares regression-based (FLSR) model to predict the prices of real estates. A comprehensive comparison studies in terms of prediction accuracy and computational complexity of ANN, Adaptive Neuro Fuzzy Inference System (ANFIS) and FLSR has been carried out. ANN has been widely used to forecast the price of real estates for many years while ANFIS has been introduced recently. On the other hand, FLSR is comparatively new. To the best of our knowledge, no property prices prediction using FLSR was developed until recently. Besides, a detailed comparative evaluation on the performance of FLSR with other modeling approaches on property price prediction could not be found in the existing literature. Simulation results show that FLSR provides a superior prediction function as compared to ANN and FIS in capturing the functional relationship between dependent and independent real estate variables and has the lowest computational complexity.

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Identifiers

ORCID for Muhammad Burhan Hafez: orcid.org/0000-0003-1670-8962

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