SchweizHedonic market rent models
Today, hedonic market rent models are an important part of digital portfolio processes for institutional investors and valuation houses. These statistical sales comparison models are based on well-documented rental contract data and allow very efficient yield estimates for rental apartments and commercial space.
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Focus on utility
With hedonic models, the focus lies on the utility of a property’s various characteristics. Statistical models measure the influence of individual characteristics on the transaction price. FPRE uses hundreds of thousands of transaction records for this purpose. The resulting utility functions allow a nationwide quality-adjusted prediction of market values for properties of arbitrary specifications on locality level.
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Self-learning system
The hedonic models of FPRE are recalibrated on a quarterly basis. The integration of the most current data ensures that the models mirror the latest market developments. The model learns from itself every quarter and thus ensures a spatially robust model landscape.
- Quarterly updates
- Comprehensive quality reports
- Review by professors
- State-of-the-art methods
