Application of The Fuzzy Logic Model in Real Estate Valuation
Abstract – In recent years, the real estate sector has become the favorite sector of corporate and individual investors. In particular, construction and real estate investments have made a great contribution to Turkey's rapidly developing economy. The demand for real estate and sectoral developments offer important opportunities for both domestic and foreign investors. Determining the real values of real estate is a very important issue. Knowing the real estate value is necessary for purchase and sale, leasing, easement, limited rights in title deed, expropriation of real estate, and tax transactions. At the same time, the present and future value of real estate is important for investors. Accurate and reliable valuation of real estate is also a vital point for the financial system. From this point of view, the valuation process consists of a combined, detailed and comprehensive set of activities in which many related factors are considered together and carried out in relation to each other. There are different valuation methods in the literature such as traditional, statistical, modern and GIS. In this study, fuzzy logic model research was conducted to determine the real estate values. For this purpose, models were created using the Fuzzy Logic method with the help of the obtained data. The market values were compared with the help of the created models. For the data set, the average approximation was found to be 95.35% in the calculation with fuzzy logic. As a result, it was concluded that it would be appropriate to use the fuzzy logic model in real estate valuation.
Keywords - Fuzzy Logic, House Valuation, Real Estate, Real Estate Valuation