The Principal Component Method in Residential Property Assessment
The object of the research is residential objects of the secondary real estate market in Krasnoyarsk. The purpose of the study is to identify the most significant factors influencing the decision of buyers when purchasing residential real estate in Krasnoyarsk. The research objectives are to form and process a database of residential real estate objects; to normalize the variables; to calculate the matrix of dependencies between the normalized variables; to find eigenvalues λ and eigenvectors ; to build dependency graphs between variables. The hypothesis of the study is that the cost of residential objects significantly depends on their location of the object and its physical characteristics. In the paper, one of the methods of factor analysis - the method of principal components - was used. The main results are as follows: based on the use of the method of principal components, the main factors that are taken into account by consumers when buying real estate were identified.