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Evaluation of spatial data’s impact in mid-term room rent price through application of spatial econometrics and machine learning. Case study: Lisbon

Abstract

Household preferences is a topic whose relevance can be found to dominate the applied economics, but whereas urban economies view cities as production centers, this thesis aims to give importance to the role of consumption. Provision to PoIs might give explanation to what individuals value as an important asset for improvement of their quality of life in a chosen city. As such, understanding short-term rentals and real estate prices have induced various research to seek proof of impacting factors, but analysis of mid-term rent has faced the challenge of being an overlooked category. This thesis consists of an integrated three-steps approach to analyze spatial data’s impact over the mid-term room rent, choosing Lisbon as its case study. The proposed methodology constitutes use of traditional spatial econometric models and SVR, encompassing a large set of proxies for amenities that might be recognized to hold a possible impact over rent prices. The analytical frameworks’ first step is to create a suitable HPM model that captures the data well, so significant variables can be detected and analyzed as a discrete dataset. The second step applies subsets of the dataset in the creation of SVR models, in hopes of identifying the SVs influencing price variances. Finally, SOM clusters are chosen to address whether more natural order of data division exists. Results confirm the impact of proximity to various categories of amenities, but the enrichment of models with the proposed proxies of spatial data failed to corroborate attainment of model with a higher accuracy. (Nüst et al., 2018) provides a self-assessment of the reproducibility of research, and according to the criteria given, this dissertation is evaluated as: 0, 2, 1, 2, 2 (input data, preprocessing, methods, computational environment, results).

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Evaluation of spatial data’s impact in mid-term room rent price through application of spatial econometrics and machine learning. Case study: Lisbon

Author: Petkov, Mihail
Year: 2020
Source: https://run.unl.pt/bitstream/10362/93716/1/TGEO0228.pdf
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EVALUATION OF SPATIAL DATA’S IMPACT IN MID-TERM
ROOM RENT PRICE THROUGH APPLICATION OF SPATIAL
ECONOMETRICS AND MACHINE LEARNING
Case S udy: Lisbon
Mihail Pe ko
ii
EVALUATION OF SPATIAL DATA’S IMPACT IN MID-TERM
ROOM RENT PRICE THROUGH APPLICATION OF SPATIAL
ECONOMETRICS AND MACHINE LEARNING
Case S udy: Lisbon
Disse a ion supe ised by:
P o esso Dou o Robe o And é Pe ei a Hen iques, PhD
Ins i u o Supe io de Es a ís ica e Ges ão de In o mação,
Uni e sidade NOVA de Lisboa
Lisbon, Po ugal
Joel Dinis Bap is a Fe ei a da Sil a, PhD
Ins i u o Supe io de Es a ís ica e Ges ão de In o mação,
Uni e sidade NOVA de Lisboa
Lisbon, Po ugal
P o esso Dou o Ca los G anell-Canu , PhD
Ins i u e o New Imaging Technologies,
Uni e si a Jaume I (UJI)
Cas ellón de la Plana, Spain
Feb ua y 28, 2020
iii
DECLARATION OF ORIGINALITY
I decla e ha he wo k desc ibed in his documen is my own and no om
someone else. All he assis ance I ha e ecei ed om o he people is duly
acknowledged and all he sou ces (published o no published) a e
e e enced.
This wo k has no been p e iously e alua ed o submi ed o NOVA
In o ma ion Managemen School o elsewhe e.
Lisbon, 28.02.2020
Mihail Pe ko
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ACKNOWLEDGMENTS
An idea abou making sense o economic phenomena h ough he lenses o
geog aphical in o ma ion ha e always been a esea ch opic o in e es o
me. Though esea ch and he esul s’ a e ma h a e o en imes
unp edic able, he people ha guided me and suppo ed me h oughou his
p ocess we e o una ely no .
I wan o i s and o emos hank my main-supe iso P o esso D . Robe o
Hen iques ha was open o hea ing my ideas and helping me cons uc hem
in some hing p ac ical, o P o esso D . Joel Sil a who was always he e o
sugges imp o emen s and guide me h ough new di ec ions and doo s when
all I was seeing we e dead ends, o P o esso D . Ca los G anell o
belie ing in me, and las , bu no leas , o P o esso D . Ma co Painho o
keeping me le el-headed o push and p og ess un il I ha e eached he inish
line.
Addi ionally, my g ea es g a i ude goes o all colleagues om he
Geospa ial Technologies Mas e as a whole, wi h special shou -ou s o my
iend and la -ma e I za, o Damien, Ca los, B aund , Vicen e and Pablo.
Las bu no leas , I would like o hank all my closes amily and iends in
Macedonia. I am ex emely g a e ul o all he suppo , pa ience and
encou agemen p o ided du ing he jou ney.
EVALUATION OF SPATIAL DATA’S IMPACT IN MID-TERM
ROOM RENT PRICE THROUGH APPLICATION OF SPATIAL
ECONOMETRICS AND MACHINE LEARNING
Case S udy: Lisbon
ABSTRACT
Household p e e ences is a opic whose ele ance can be ound o domina e he applied
economics, bu whe eas u ban economies iew ci ies as p oduc ion cen e s, his hesis
aims o gi e impo ance o he ole o consump ion. P o ision o PoIs migh gi e
explana ion o wha indi iduals alue as an impo an asse o imp o emen o hei
quali y o li e in a chosen ci y. As such, unde s anding sho - e m en als and eal es a e
p ices ha e induced a ious esea ch o seek p oo o impac ing ac o s, bu analysis o
mid- e m en has aced he challenge o being an o e looked ca ego y. This hesis
consis s o an in eg a ed h ee-s eps app oach o analyze spa ial da a’s impac o e he
mid- e m oom en , choosing Lisbon as i s case s udy. The p oposed me hodology
cons i u es use o adi ional spa ial econome ic models and SVR, encompassing a
la ge se o p oxies o ameni ies ha migh be ecognized o hold a possible impac
o e en p ices. The analy ical amewo ks’ i s s ep is o c ea e a sui able HPM model
ha cap u es he da a well, so signi ican a iables can be de ec ed and analyzed as a
disc e e da ase . The second s ep applies subse s o he da ase in he c ea ion o SVR
models, in hopes o iden i ying he SVs in luencing p ice a iances. Finally, SOM
clus e s a e chosen o add ess whe he mo e na u al o de o da a di ision exis s. Resul s
con i m he impac o p oximi y o a ious ca ego ies o ameni ies, bu he en ichmen
o models wi h he p oposed p oxies o spa ial da a ailed o co obo a e a ainmen o
model wi h a highe accu acy.
(Nüs e al., 2018) p o ides a sel -assessmen o he ep oducibili y o esea ch, and
acco ding o he c i e ia gi en, his disse a ion is e alua ed as: 0, 2, 1, 2, 2 (inpu da a,
p ep ocessing, me hods, compu a ional en i onmen , esul s).

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KEYWORDS
P edic i e Modeling
Ameni ies
Suppo Vec o Reg ession
Spa ial Econome ics
Hedonic P ice Modelling
Poin s o In e es
Mid-Te m Ren
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ACRONYMS
AIC – Akaike In o ma ion Re ie al
ANN – A i icial Neu al Ne wo k
API – Applica ion P og amming In e ace
BGRI - Base Geog á ica de Re e enciação de In o mação
BMU – Bes -Ma ching Uni
CCDR – Comissão de Coo denação e Desen ol imen o Regional
CML – Câma a Municipal de Lisboa
CPI – Consume P ice Index
DoF – Deg ees o F eedom
DTM – Digi al Te ain Model
GIS – Geog aphic In o ma ion Sys ems
HPM – Hedonic P ice Modelling
MAE – Mean Absolu e E o
MD – Minimum Dis ance
MLP – Mul i-Laye Pe cep on
MMH – Maximum Ma gin Hype plane
OSM – OpenS ee Map
POI – Poin o In e es
RMSE – Roo Mean Squa e E o
SD – S anda d De ia ion
SDEM – Spa ial Du bin E o Model
SLX – Spa ially Lagged X
SOM – Sel -O ganizing Map
SQL – S anda dized Que y Language
SVM – Suppo Vec o Machine
SVR – Suppo Vec o Reg ession
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INDEX OF THE TEXT
ACKNOWLEDGMENTS ....................................................................................................... IV
ABSTRACT .............................................................................................................................. V
KEYWORDS .......................................................................................................................... VI
ACRONYMS ......................................................................................................................... VII
INDEX OF TABLES ................................................................................................................ X
INDEX OF FIGURES ............................................................................................................. XI
1. INTRODUCTION .................................................................................................................. 1
1.1 THE MARKET AND ITS FLUCTUATIONS ............................................................................. 1
1.2 FACTORS DRIVING A MARKET – PREDICTIVE MODELLING .............................................. 2
1.3 RESEARCH OBJECTIVES ..................................................................................................... 3
1.4 DISSERTATION STRUCTURE ............................................................................................... 3
2. THEORETICAL FRAMEWORK AND RELATED WORKS ............................................. 4
2.1 THEORETICAL BACKGROUND ............................................................................................ 4
2.1.1 A i icial In elligence and Machine Lea ning ........................................................... 4
2.1.2 Spa ial Econome ics ................................................................................................ 4
2.1.3 Suppo Vec o Reg ession ........................................................................................ 6
2.1.4 Sel -O ganizing Map and GeoSOM .......................................................................... 8
2.2 RELATED WORK ................................................................................................................ 9
2.2.1 Resea ch h ough Applica ion o Spa ial Econome ics ........................................... 9
2.2.2 Resea ch h ough Applica ions o SVR ....................................................................11
2.2.3 Resea ch h ough Usage o O he Algo i hms .........................................................11
3. DATA AND METHODOLOGY ..........................................................................................12
3.1 GEOGRAPHICAL CONTEXT ...............................................................................................12
3.2 PROPOSED ARCHITECTURE ...............................................................................................13
3.3 HARDWARE AND SOFTWARE ............................................................................................13
3.3.1 Pos g eSQL ..............................................................................................................13
3.3.2 R ...............................................................................................................................14
3.3.3 Py hon ......................................................................................................................14
3.4 DATA DESCRIPTION AND RESOURCES ..............................................................................15
3.4.1 Room Ren al Sou ces ...............................................................................................15
3.4.2 Zoma o API Res au an Da a Collec ion .................................................................15
3.4.3 Google Places API Da a Collec ion .........................................................................16
3.4.4 OpenS ee Map Da a ...............................................................................................16
3.4.5 Census Da a .............................................................................................................18
3.4.6 Ancilla y Da a ..........................................................................................................18
3.4.7 O he Va iables Impo ance – Access Limi a ions...................................................19
3.5 METHODOLOGY ................................................................................................................19
3.5.1 Va iables Con e sion ...............................................................................................20
3.5.2 Spa ial Da a En ichmen ..........................................................................................21
3.5.3 Da a P ep ocessing ..................................................................................................24
3.5.4 Spa ial Econome ics and Machine Lea ning ..........................................................27
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4. RESULTS AND DISCUSSION ...........................................................................................28
4.1 SPATIAL DEPENDENCE .....................................................................................................28
4.2 SPATIAL LAGGED X ..........................................................................................................29
4.3 SPATIAL DURBIN ERROR MODEL .....................................................................................33
4.4 SUPPORT VECTOR REGRESSION .......................................................................................38
4.5 NATURAL DATA CLUSTERS USING SOM AND GEOSOM .................................................43
4.6 OVERVIEW OF GIVEN ANALYSIS ......................................................................................46
5. CONCLUSIONS ...................................................................................................................47
6. BIBLIOGRAPHIC REFERENCES ......................................................................................49
7. ANNEX .................................................................................................................................56
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O dina y Leas Squa es (OLS) is a simple HPM eg ession ha akes he o m o
equa ion (1):
𝒚𝒚𝒊𝒊=𝛂𝛂+ 𝜷𝜷𝟏𝟏𝒙𝒙𝟏𝟏+𝜷𝜷𝟐𝟐𝒙𝒙𝟐𝟐+ 𝜺𝜺𝒊𝒊 (𝟏𝟏)
Whe e yi would be he i h obse a ion o he dependen a iable, x is a ec o o all
explana o y a iables, and α is an in e cep ha holds he alue o y when all
explana o y a iables a e equal o 0. 𝛽𝛽 is he ec o o he co esponding coe icien s o
he es ima es p edic o s and 𝜺𝜺 is he andom e o .
When dealing wi h gi en da a, he OLS model has ce ain assump ions, whose iola ion
would lead o an inapp op ia e model. One o he assump ions speci ies ha inding
spa ial au oco ela ion in he esiduals o he p edic ions shows ha he e is a spa ial
pa e n in he da a unde analysis and mo e app op ia e models exis ha can accoun
o i .
Spa ial Lagged X (SLX) po ays a spa ial eg ession model ha ex ends o include
explana o y a iables obse ed on neighbo ing c oss-sec ional uni s e ms. In o de o
imp o e he model, a spa ial exogenous au o eg essi e lag is in oduced (Elho s &
Halleck Vega, 2017). The equa ion (2) would hen ake he o m o :
𝒚𝒚𝒊𝒊𝒊𝒊 =𝐖𝐖𝒙𝒙𝒊𝒊𝒊𝒊 +𝐗𝐗𝒊𝒊𝒊𝒊𝜷𝜷+𝜺𝜺𝒊𝒊𝒊𝒊 (𝟐𝟐)
Then, 𝐗𝐗𝒊𝒊𝒊𝒊 ep esen s he au o eg essi e coe icien ha p oduces he global spa ial
spillo e e ec . I his comes o be equal o ze o, he model simpli ies o a con en ional
linea eg ession model (Lesage, 2008). Ne e heless, his app oach has i s d awbacks
because assump ions a e made ha all he spa ial dependence among esiduals is caused
by a iables one can measu e.
Spa ial Du bin Model is an ex ension o SAR ha includes he a e age o he a iables
om he neighbo ing houses, bu i ex ends o allow o global di usion o shocks o
he model dis u bances. This means ha he spillo e can be el o e mul iple egions,
bu he decay pa ame e λ con ols ha highe -o de neighbo s (indi ec ones) o ecei e
less impac han he di ec ones (Lesage, 2014). Addi ionally he E o addi ion wi hin
his model c ea es he SDEM model ha accoun s o spa ial dependence among he
e o e ms and edis ibu es his e o among he sample. The equa ion in ec o o m
akes he equa ion (3) (LeSage & Pace, 2009):
𝒚𝒚𝒊𝒊𝒊𝒊 =𝐃𝐃𝒊𝒊𝒊𝒊ծ+𝐖𝐖𝒚𝒚𝒊𝒊𝒊𝒊𝝆𝝆+𝐗𝐗𝒊𝒊𝒊𝒊𝜷𝜷+𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾 (𝟑𝟑)
𝑾𝑾= 𝝀𝝀𝑾𝑾𝑾𝑾+𝝐𝝐
Dummy Va iables a e bina y a iables ha equal ‘1’ i he a ge a iable is desc ibed
o ei he , con ain some hing (e.g. e ace wi h seaside iew), o i belongs somewhe e
(e.g. an apa men belongs o he pa ish o Al ama). ‘0’ hen desc ibes he opposi e case.
Each o he a iables can ha e a posi i e o a nega i e ela ionship wi h he p ice. In an
ideal case, minimum dis ance o an ameni y makes a p ice ise. Ne e heless, he ma ke
can beha e unp edic ably o in e ac wi h o he a iables o yield a nega i e
ela ionship. Fo example, a en o oom in an apa men whe e he a io o numbe o

6
bed ooms di ided by numbe o ba h ooms is high migh yield a nega i e e ec .
Addi ionally, ha ing a minimum dis ance o clubs below 20 me e s migh dissuade
po en ial enan s away om a p ope y.
Di ec e ec : Change o a pa icula en i y o a lis ing (e.g. eno a ion o apa men
om 1979 o 2019) changes he p ice a ge a iable.
Indi ec e ec : Measu es he impac on he p ice o a a ge a iable om changing an
exogenous a iable in ano he da a poin .
Weigh Ma ix - A ma ix W is a ma ix o o de n x n whe e n is he numbe o egions.
Non-ze o elemen s in ow i and column j in he ma ix hen ep esen he elemen ni is
a neighbo o elemen nj. Rook and Queen each e e o wo common ways o calcula e
s a is ics o ocal cells, and hese a e known as Moo e’s and Neumann’s
neighbo hoods. These spa ial weigh s a e calcula ed, such ha each elemen in a ma ix
ep esen s a spa ial weigh be ween wo neighbo s. The spa ial weigh s Wij a e non-ze o
when i and j a e neighbo s, o ze o o he wise. The di e ence be ween he wo ypes o
neighbo hood is ha in Rook con igui y, common e ices do no make wo polygons -
neighbo s. The use o queen neighbo hood was he chosen app oach in o de o e lec
eal-li e phenomena whe e i wo neighbo hoods mee a a common co ne , hey would
s ill cause in luence be ween one-ano he .
Figu e 2.1 - Types o Weigh ed Neighbou hoods
2.1.3 Suppo Vec o Reg ession
SVM o igina ed om an algo i hm implemen a ion om 1995 by Co es and Vapnick
(Co es & Vapnik, 1995). The algo i hm had been i s in oduced in o de o sol e
pa e n ecogni ion p oblems. SVM is desc ibed as an algo i hm ha makes use o a
hype plane cons uc ed in a highe dimensional inpu space ha sepa a es he da a in
his high dimensional space op imally (Suykens & Vandewalle, 1999). Ne e heless,
wha began as a classi ica ion p oblem, ose o applica ion o sol ing unc ion
es ima ion p oblems. These indings p oceeded o addi ional inclusion o op ional
pa ame e s like epsilon’s loss unc ion and in oduc ion o di e en ypes o ke nel
unc ions in which da a can be mo e easily di ided. This way, he e could be di e en
solu ions p oduced wi h di e en complexi ies and di e en h esholds o e o s in
o de o build he mos cos -e icien model ha could be deemed a good enough i o
he pu pose i had been buil o .
7
The e a e in ini e possible ways o cons uc a hype plane, and in classi ica ion, he bes
hype plane can be de e mined as he one ha holds he la ges dis ance be ween
hype planes and he suppo ec o s. Subsequen ly, de ec ion o SVs and Lag ange
Mul iplie s demons a e he eco ds impo an o building he model (Wi en, Pal, &
Fou h, 2017).
Epsilon wi hin SVR
Wi h gi en aining da a {(x1, y1) …. (xe, ye)} whe e X ⊂ X × R, whe e X deno es he
space o he inpu pa e ns, SVR is looking o a unc ion (x) ha would ha e a mos
ε de ia ion om he ac ual a ge s o all aining da a, whils main aining he la ges
la ness (Smola & Schölkop , 2004). A linea i o a eg ession unc ion is p esen ed
in Figu e 2.2:
Figu e 2.2 - Tube wi h adius ε (Schölkop , 2002)
I all da a poin s i wi hin he ube p esen ed, he i ed model hen has an e o 0. In
his way, a model can be buil wi h an in ini ely high alue ε. This would lead o no
penal y gi en o any da a poin and an e o o 0, bu his would be a meaningless
accu acy measu e.
In a linea case he SVR unc ion akes he o m o Equa ion (4)
𝑋𝑋 = 𝑏𝑏 + ∑i α a(i)⋅a (𝟒𝟒)
The do no ion can be subs i u ed by a ious ke nel unc ions i a non-linea p oblem is
p esen ed. Mos common ke nels used a e:
• Linea ke nel Xi – Equa ion (4)
𝐾𝐾(𝑥𝑥𝑖𝑖,𝑥𝑥)=𝑥𝑥𝑇𝑇𝑥𝑥𝑖𝑖 (𝟓𝟓)
• Polynomial ke nel – Equa ion (5)
𝐾𝐾(𝑥𝑥𝑖𝑖,𝑥𝑥)= (𝑥𝑥𝑇𝑇𝑥𝑥𝑖𝑖+ 1)𝑑𝑑 (𝟔𝟔)
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• Radial Basis Func ion ke nel – Equa ion (6)
𝐾𝐾(𝑥𝑥𝑖𝑖,𝑥𝑥)=exp �−𝛾𝛾�|𝑥𝑥𝑖𝑖−𝑥𝑥|�2�,𝑤𝑤ℎ𝑒𝑒𝑒𝑒𝑒𝑒 𝛾𝛾=1
2𝜎𝜎2 (𝟕𝟕)
Only he suppo ec o s a e impo an o he model – he dele ion o all o he ows
bea s a coe icien 0 and hence, does no change he ou come o he p edic i e model.
Ano he a iable whose alue plays impo ance in building he model is he
egula iza ion pa ame e C ha deno es he limi o he absolu e alue o he coe icien s
αi, which gi es he limi o how much i is needed o a oid misclassi ying a aining
example. The limi cases hen become he ollowing:
I. he la ge C becomes, he close he unc ion can i he da a in he hype plane
and smalle -ma gin hype plane will be needed
II. an ε o 0 c ea es a leas -absolu e-e o eg ession wi h cons ain C
III. A la ge alue o ε jus ou pu s he la es ube ha encloses all da a
Gamma (𝛾𝛾) is a speci ic pa ame e o adial basis ke nel ha de ines how a an
in luence o a single aining example eaches. A la ge gamma would co espond o
mo e suppo ec o s ha ing in luence on he hype plane.
2.1.4 Sel -O ganizing Map and GeoSOM
The Sel -O ganizing Maps a e a clus e ing algo i hm in oduced in he 1980s (Kohonen,
1982). The main idea is o map high-dimensional da a, in o dimensions om which he
human eye can unde s and and ex ac pa e ns. The uni s by hemsel es can be loosely
o closely connec ed o each o he , and he deciding clus e s a e decided by he use .
SOM algo i hm can ha e di e en dis ance me ics, bu mos o en makes use o he
Euclidean dis ance as a measu e o closeness be ween wo a bi a y uni s. Once a SOM
has been ained wi h a gi en pa e n, all he uni s mo e owa ds he bes ma ching uni
(BMU). A he end, pa e ns ha a e simila in he inpu space should also ca y his
beha iou in he ou pu space.
GeoSOM is an adap a ion o SOM o accoun o he speci ici y o spa ial da a. The
sea ch o he BMU akes pa in wo cycles. Ins ead o sea ching o a BMU h oughou
he whole da ase , i ies o ind a neighbou ing one ha is limi ed in he sea ch adius
wi h he pa ame e k. The ou pu space in SOM usually akes he o m o a 2-
dimensional space (Kohonen, 2001) as he easies one o isualize.
9
Figu e 2.3 - Sel -O ganizing Map - I/O space (Hen iques, Bação, & Lobo, 2009)
The e a e a numbe o impo an pa ame e s ha need o be uned when aining a
da ase wi h SOM. These include lea ning a e, adius, a numbe o i e a ions, and hey
need o be chosen acco dingly o minimize a model’s opological e o .
2.2 Rela ed Wo k
Th oughou his subsec ion, e e ences and links o s udies ega ding p ice p edic ion
a e men ioned o gain a gene al o e iew o wha esea ch has been applied and he
co esponden indings ollow. Fo a clea e s uc u e, he ela ed wo ks a e di ided in o
h ee sec ions, one deno ing Spa ial Econome ics’ ela ed s udies, a second o SVR
ela ed s udies, and a hi d o gi ing b ie ing o o he algo i hms’ usage.
2.2.1 Resea ch h ough Applica ion o Spa ial Econome ics
Resea ch shows indispu able e idence o he impac o he cul u al he i age on he eal
es a e p ices in he ci y. A case s udy o he ci y o Lisbon inds p oo ha a p o ec ed
zone can p oduce a nega i e impac on he house alue bu i also p oduced indings
ha when accoun ing o he he e ogenei y o he a eas unde ques ion, he e ec s had
seemingly disappea ed (F anco, Macdonald, F anco, & Macdonald, 2016).
Ano he s udy has e ealed ha o e all, his o ic ameni ies gene ally gi e ise o
dwelling p ices in o de o 4.2%, bu once he adius b oadened, a high concen a ion
o hese his o ical ameni ies s a ed o yield a sligh ly nega i e e ec o 0.1% (F anco
& Macdonald, 2016).
When analyzed, hese pape s b ing abou conclusions ha li ing in a p oximi y o an
ameni y wi h some deg ee o cul u al impo ance gi es exposu e and iden i y o an
apa men being in he cen e o a local clus e (a desi able esiden ial a ea). Li ing in
close p oximi y o many o hese objec s on he o he hand had shown a co ela ion o
10
i being a highly ou is ic a ea, which in u n is alued as a e y desi able dwelling o
one’s day- o-day li e.
O he esea ch has also ound ax exemp ions o d i e posi i e spillo e s o nea by
p ope ies ( an Duijn and Rouwendal 2012, Ahl eld , Holman, and Wendland 2012,
Coulson and Lah 2005).
Wha ’s mo e, using a HPM on eal es a e p ices ha e ound Lisbon’s ‘Me o S a ion
P oxy’ a iable coe icien o gi e be ween 3.49% and 5.18% ise in p ices wi h a ed
posi i e accessibili y o a single me o line, o be ween 4.62% and 6.17% o
accessibili y o wo me o lines and e en la ge o he ail accessibili y (Ma ínez &
Viegas, 2009).
Addi ionally esea ch ha e also used addi i e hedonic eg ession models o accoun o
he he e ogenei y in he en ma ke (B unaue , Lang, Wechselbe ge , & Biene , 2010)
o eal es a e p ices in Vienna. This had led o conclusions abou disco e ies o
subma ke s which ha e as a signi ican ac o a ‘Belonging’ o lis ings in he speci ic
ci y’s dis ic s.
O he sou ces (Mo o, Mayo , & Lyons, 2013) include a s udy o e he ci y o Dublin
as a case s udy whe e he i age si es wi hin he ci y we e ca ego ized as ac o s using a
limi ed numbe o ca ego ies. This s udy had gi en a small bu signi ican posi i e sco e
o ce ain ypes o ca ego ies (his o ic buildings and memo ials) as a spillo e e ec o
apa men s in he icini y, al hough o he ca ego ies (a cheological si es) had p oduced
a nega i e one. The s udy had been made h ough p oducing dummy a iables as lags
o whe he a ce ain ype o building was in a adius o a chosen ameni y. Va iables
pe aining o me os and bus s op as means o public anspo had also been used and
i had been no ed ha li ing wi hin 100 me e s o a me o s a ion esul ed in a posi i e
co ela ion wi h a p ice inc ease o an apa men (F anco e al., 2016).
(Poo , 2015) ha e mo eo e a gued ha he p esence o cul u al he i age a ac s highly
educa ed households using hei case s udy o he Ne he lands. This ac o had also
caused a spillo e o indus ies in he coun y in es ing and p e e ing o eside whe e
he eli e households o he coun y eside (Ma le and Woe kens, 2005).
Las , bu no leas , o he s udy indings include cul u al he i age si es i sel ca ying a
mul iplie e ec o o he ameni ies including es au an s and shops ( an Duijn, 2013).
This gi es an idea o linea dependencies be ween exogenous a iables could clu e o
bias an analysis and make o an o e ly complex model.
These s udies, o he mos pa , decons uc many spa ial a iables seg ega ed and
analyzed sepa a ely (as objec i e o unde s anding single a iable’s impo ance) a he
han i ing one model using many. The majo i y o hem use Euclidean dis ance o
calcula e p oximi y, whe ein a PoI can eside anywhe e wi hin a p oposed adius
h eshold o an ameni y in ques ion.

11
2.2.2 Resea ch h ough Applica ions o SVR
Finding using he SVR include (Chen, 2010) ha discuss ha s a i ica ion o
Shanghai’s ma ke in o mo e homogeneous subse s p o ides conside able bene i s as
con as o aking he agg ega e o he whole Shanghai’s en ma ke . The app oach
used a hedonic app aisal model as a p ep ocessing s ep o choosing he igh a iables
be o e building he SVR. Ano he pape has buil a eal es a e o ecas ing model based
on pa icle swa m op imiza ion (PSO) be o e applying he SVR (Wang, Wen, Zhang,
& Wang, 2014). Op imiza ion h ough HPM seems o be a ecu ing heme when using
SVR and SVM. In his way, he signi ican a iables need o be de ec ed i s be o e
building he model so he ime complexi y also lowe s subs an ially, whils also making
su e he model’s accu acy does no su e om he mul icolinea i y p oblem.
2.2.3 Resea ch h ough Usage o O he Algo i hms
A ecen s udy o eal-es a e p ice e alua ion was done h ough he usage o bo h NN
and HPM as a way o compa ing he wo algo i hms. Ne e heless, his esea ch was
concen a ed on p oducing minimum MAE accu acy model o p edic ions and does
no gi e u he in o abou he singula in luence o unique a iables in building he
model (Sa ono , 2017). This is because o he “black box” na u e o ANN in which
mul iple neu ons a e exchanging in o ma ion and a e upda ing hei weigh s, bu o he
ou e wo ld no a lo o subs an ial in o ma ion is gi en h ough which he obse e can
ge many conclusions. Ano he s udy was done using ANN on he island o Cabo Ve de
using 1092 da a poin s wi h a yea ly empo al scale be ween 2009 and 2014. This s udy
also came abou as a compa ison be ween using he algo i hm o ANN and Random
Fo es and d aws conclusions o MLP p oducing highe e o s han he la e algo i hm
(Es e & Ma ins, 2016). The mos impo an a iables he e we e ound wi h he model
i , and among hem, he loca ion o he apa men and he squa e me e o he apa men
seemed o cause bo h highes signi ican and posi i e in luence, wi h he closeness o
public ins i u ions and an exis ing balcony in he apa men compu ed as ones wi h leas
impo ance. ML s udies o en ha e a lo o esea ch concen a ed solely on inding he
bes model wi h he leas e o (C is ina and Teixei a 2009, McCluskey e al. 2013,
Limsombunchai e al. 2004) wi h using NN and MLP’s as ML s anda ds ha manage
o build models ha cap u e he da a’s beha io he bes , p oducing he smalles e o .
One can also no e usage and compa ison o Random Fo es in eal es a e p edic ions in
Ljubljana (Kiliba da, 2018), whe e indings sugges in he s udy a ea unde e alua ion,
i pe o med signi ican ly be e han o he ML algo i hms. These a e jus a ew small
e e ences o he as usage o many di e en algo i hms wi hin he ML ield ha could
be used o assess his ype o da a, al hough i mus be no ed ha e e y algo i hm a ies
in he ou pu in o ma ion and hence, he ype o analysis i allows o .
12
3. DATA AND METHODOLOGY
This chap e explains in de ail he unde aken s eps o p oduce his disse a ion. Fi s , a
geog aphical con ex is gi en in Sec ion 3.1 whe ein gene al in o ma ion abou he
encompassing s udy a ea is in oduced. In Sec ion 3.2 a b ie o e iew o he p oposed
a chi ec u e. The chap e con inues wi h Sec ion 3.3 he eupon gi ing a synopsis o he
so wa e and algo i hms ha a e impe a i e o p oducing new spa ially consis en da a.
Sec ion 3.4 hen desc ibes he da a sou ces and a iables choices. The inal, Sec ion 3.5
po ays how he di e en unde aken pa s o he me hodology come oge he o
encapsula e he analysis.
3.1 Geog aphical Con ex
Lisbon is he capi al and la ges ci y o Po ugal, wi h a bounding box desc ibing a
la i ude ange be ween -9.2379 and -9.0863 and a longi ude ange o 38.6800 and
38.7967. The adminis a i e a ea o he ci y co e s app oxima ely 100.05km2, and he
ci y’s las census had eco ded 505,526 ci izens. A clea dis inc ion is made be ween
Lisbon’s adminis a i e a ea and he u ban a ea ha ex ends a beyond hese limi s.
The posi i e ele a ion goes om 0 a i s minimum up o 227 me e s o al i ude.
The ci y has a ci cula physical con igu a ion co e ing app oxima ely 12 kilome e s
bo h eas o wes and no h o sou h. O icial di isions di ide i in o 24 pa ishes, o in
3623 subsec ions a he lowes mapping le el. Maps o he pa ishes’ polygons and he
le el 4 subsec ions a e shown in Figu e 3.1 below.
Figu e 3.1 - S udy A ea Di isions: Pa ishes e sus Le el 4 Census Blocks
13
3.2 P oposed A chi ec u e
The pu pose o he me hodology is o y o inco po a e many di e en sou ces,
acco ding o he a ailabili y o he da a and he ca ego ies o da a poin s hey o e . The
policy o anspa ency o he EU gi es space o use open da a eely which helps in he
p ocess o ga he ing an abundance o da a ha could be in e -checked o eliabili y
be ween he di e en sou ces and gi es he choice be ween using sou ces wi h he
bigges quan i y, bigges quali y o in eg a ions. Ne e heless, his also b ings abou
weigh and complexi y o compu a ions needed o eplica ing he analysis. Fo easie
p ocesses, all da a is impo ed o a Pos g eSQL da abase, om whe e i could be easily
expo ed and ead in bo h QGIS and RS udio. This in eg a ion o en i onmen s p o ides
a obus b idge o easie da a con e sion, manipula ion and addi ional pa alleliza ion
o compu a ional p ocesses. The p oposed a chi ec u e is ound in Figu e 3.2.
The Figu e shows li le de ail o he R analysis, al hough he packages used a e o be
men ioned in he ollowing sec ion.
Figu e 3.2 – P oposed A chi ec u e
3.3 Ha dwa e and So wa e
Conce ning ha dwa e, he esea ch used an In el Co e i7-7700HQ wi h 16 GB o RAM
capaci y, unde a Windows 10 ope a ing sys em.
Rega ding so wa e, he majo i y o he unde aken analysis was done wi hin
Pos g eSQL and R. Addi ionally ancilla y so wa e was used o isualiza ion including
QGIS, A cGIS P o, as well as mino checks and la iles o he da ase o e sioning
his o y as excel iles.
3.3.1 Pos g eSQL
This is a ee and open-sou ce ela ional da abase managemen sys em ha ex ends he
SQL language whe e use s can sa ely s o e and scale complica ed da a wo kloads (The
Pos g eSQL Global De elopmen G oup., 2014). When dealing wi h spa ial-da a, he
14
da abase capabili ies can be accompanied by addi ional add-ons. pgAdmin4 e sion is
used, alongside he ollowing ex ensions:
• Pos GIS: Allows o geog aphic loca ion que ies o be un in SQL (Pos g eSQL
Global De elopmen G oup, 2020).
• pgRou ing: Enables a oad ne wo k analysis o be pe o med; I is used o
calcula e he sho es pa h o places h ough pg _d i ingDis ance unc ion
(OSGeo Founda ion, 2018)
3.3.2 R
R is a sys em o s a is ical compu a ion and g aphics. I p o ides, among o he hings,
a p og amming language, high-le el g aphics, in e aces o o he languages and
debugging acili ies (R Co e Team, 2019). The language is able o be execu ed on many
ope a ing sys ems ee o cha ge. The RS udio, subsequen ly, ep esen s an in e ace o
he execu ion o R code. Packages ha make he analysis possible a e lis ed as ollows:
• s : Package ha allows o eading, w i ing, manipula ing and isualizing
spa ial da a and geome ies, o and om R (Edze Pebesma, 2019)
• RPos g eSQL: Da abase in e ace and ‘Pos g eSQL’ d i e o R (Conway e
al., 2019). Wi h his package di ec connec ion o he Pos g eSQL da abase is
made, and ables and que ies o he da abase can be di ec ly impo ed and sa ed
as a iables wi hin he RS udio en i onmen
• dply : A ool used o easie manipula ion o da a ames (Wickham, 2019)
• mag i : Ope a o ha o wa ds a esul s o an exp ession o he nex unc ion
ha comes a e (S e an Mil on Bache and Hadley Wickham, 2014)
• ca e : A comp ehensi e amewo k o machine lea ning models (Kuhn, 2020)
• e1071: A package used o in ui i e applica ion and analysis o he SVR
algo i hm, one among many p obabilis ic clus e ing and eg ession models
(Meye , 2019)
• spa ial eg: A collec ion o es ima ion unc ions o spa ial c oss-sec ional
models (Roge Bi and 2019). Lib a y used o applying HPM on he da a
• spdep: A collec ion o unc ions o c ea e spa ial weigh s ma ix objec s om
polygon ‘con igui ies’ by dis ance and essella ions (Roge Bi and 2019). This
package is used o applying unc ions in he HPM spa ial eg ession analysis.
3.3.3 Py hon
Py hon is an in e p e ed, high-le el, gene al-pu pose p og amming language. The
language can be used o any compu a ional pu poses, al hough o he means o he
disse a ion, i was used o inding speci ic-pu pose API W appe s. The API W appe
hen p o ides an in e ace be ween an API and a p og amming language, so all p o ided
API me hods o da a collec ion can be made h ough he desi ed p og amming
language’s unc ion calls and w appings.
21
dummy a iables we e, in u n, no included. The mos equen wo ds a e shown in
Figu e 3.5 abo e.
3.5.2 Spa ial Da a En ichmen
Da a om many o he sou ces o e laps. The e o e, decisions o uni ica ion o hese
da a in o one sou ce we e unde aken.
The da a om Zoma o holds he la ges quan i y o es au an s, and con ains
in o ma ion pe aining o e iews and he cos liness o he es au an s. Hence, i was
decided o use i as he only sou ce o ood- ela ed PoIs. O he PoI ca ego ies om a
single sou ce (CML) we e me ged depending on whe he he di e en ia ion be ween
hem ailed o appea as a esponse in simila s udies o his ype (e.g. p i a e and public
schools o i s , second deg ee and p e-cycle a e me ged). Medical p ac i ione s we e
subsequen ly me ged wi h independen doc o s. Ne e heless, hospi als and medical
cen es a e le as a sepa a e ca ego y.
I wo used sou ces a e ound o hold a subs an ial amoun o di e en unique da a,
A cGIS P o Analysis – “Gene a e Nea Fea u es” unc ion is used o de ec ion o all
ea u es be ween he wo laye s ha a e wi hin 2 me e s one o he . These we e
p esumed o ep esen he same da a poin and we e dele ed om he second sou ce
be o e me ging.
The ca ego ies o ameni ies chosen a e lis ed in Figu e 3.6 and Figu e 3.7 below.
Figu e 3.6 - Coun s o Fea u es pe Ca ego y A
Figu e 3.7 - Coun s o Fea u es pe Ca ego y B

22
Fi y- i e new a iables hus exis ; 54 o hem a e shown in he Figu es abo e, and he
las one deno es ele a ion ex ac ed om a DTM (Lisboa - Digi al Te ain Model,
2010).
The spa ial da a en ichmen hen makes use o he unc ion pg _d i ingDis ance() o
de ec ion o eachable ameni ies om a eco d’s lis ing.
pg _d i ingDis ance('SELECT id, sou ce_osm, a ge _osm, cos _s, FROM ways',
s a ing_ e ices, dis ance, di ec ed := alse)
To be able o execu e his command, a lis ing needs i s node o igin poin , and a
des ina ion poin . In he case o he ooms, compu a ions gene a e he closes node o
each oom as well as he closes nodes o each o he des ina ions. Figu e 3.8 below
shows sample ables wi h gene a ed closes nodes’ ield using he ways able.
Figu e 3.8 - O igin (Room), Des ina ion (PoI) and Edge Ne wo k DB Schema
Fo less cos ly compu a ion, an addi ional in e media y able ca chmen _a ea is
c ea ed, which desc ibes all po en ially eachable nodes om all o igin nodes o he
ooms (gi en a desi ed me e s uppe h eshold).
WITH
nodes AS (
SELECT a ay_agg(node_id) AS nodes om ap _ oom.node_id)
SELECT om_ as s a _node, node as end_node, agg_cos as cos om nodes,
pg _d i ingdis ance(
'SELECT gid as id, sou ce as sou ce, a ge as a ge , cos _s as
cos , di ec ed FROM public.ways':: ex , nodes, 2000, alse)
This code, in u n, p oduced a able ha holds all he eachable nodes wi hin 2km. A
isualiza ion o he eachable a ea om a sample poin is shown in Figu e 3.9 below.
23
Figu e 3.9 - Road Ne wo k Accessibili y om a Sample Room
The p oxies o each ca ego y o PoI hen cons i u e o :
• Minimum dis ance (in me e s) om he oom o he closes ameni y o a
p ede ined ype
• Coun pe ca ego y o PoIs wi hin a dis ance h eshold. Fi e dis inc h esholds
a e p oposed as ollows: 2km, 1.5km, 1km, 0.5km, and 0.25km.
Two a iables ha we e speci ic in hei seg ega ion p ocess we e he ‘Pa ks’, many o
which ha e mul iple closes nodes as being 0 me e s away om i s en ance, and he
‘Res au an s’ ha ha e a e y high quan i y and densi y h oughou he whole s udy
a ea. The e o e, a sepa a e able o pa ks was cons uc ed ha holds all nodes less han
10 me e s away om he pa k o in e es , as possible des ina ion nodes om an o igin
poin . Unique p oxies a e cons uc ed o he es au an s acco ding o hei
expensi eness (1-4 s a s), and addi ionally, acco ding o hei a e age e iew a e
(s a ing om 0 as no- e iews, 1 as bad, up o 5 as excellen a e).
Figu e 3.10 below, p esen s an example wi h an in e pola ed su ace o he minimum
dis ance needed o walk om a sample oom o he i s egis e ed s a ue in he da ase .
24
Figu e 3.10 - Example: Minimum Dis ance o a Mall (in me e s)
3.5.3 Da a P ep ocessing
The goal o his sec ion is o p o ide an o e iew o he desc ip i e da a s a is ics, as
well as some p ep ocessing decisions o he in eg a ed da ase and he easoning behind
hem.
Ou lie de ec ion – A ecommended app oach when dealing wi h da ase s is o emo e
ou lie s. These can ep esen e oneous da a and in his speci ic case, alse en ies can
be pa o o e p iced o e s i a oom’s acancy is a in he u u e, o addi ional
nego ia ions migh be p esen be ween cus ome -clien , which canno be accoun ed o .
The s a is ics o he endogenous a iable a e shown in Table 3.4 below:
S a is ic
Value
Mean
473
S anda d E o
3.72
Median
420
Mode
400
S anda d De ia ion
173
Range
900
Minimum
100
Maximum
1000
Coun
2149
Table 3.4 – Desc ip i e S a is ics o Dependen Va iable
The in e qua ile ange inds all alues om 870 abo e as ou lie s and no ou lie s below
he minimum alue, which amoun s o a o al o 105 ou lie s ou side o he 1.5
in e qua ile anges below he i s and abo e he hi d qua ile. Ne e heless, his da a
25
and scena io depic s a eal-li e Lisbon en ma ke a a speci ic empo al ins ance in
Sep embe 2019. Hence, i is decided agains he emo al o hese ou lie s.
The Clus e and Ou lie Analysis was un in o de o iden i y clus e s and spa ial
ou lie s. False Disco e y Ra e Co ec ion (FDR) pa ame e is checked, o educe he
c i ical p- alues o accoun o mul iple es ing and spa ial dependence. I is no iceable
ha he e a e many clus e s adjoining high-p iced ooms wi h low-p iced ooms nea by,
as well as low-p iced ooms wi h many high-p iced ooms nea by. The high-low p ice
clus e s end o exhibi a pa e n om cen al o he no he n bo de s o he s udy a ea,
whe eas he low p icings wi h many high-p iced ooms end o ha e a gene alized
localiza ion nea he coas .
Clus e Type
Coun
High-High
185
High-Low
64
Low-High
86
Low-Low
232
Non-Signi ican
542
To al
1109
Table 3.5 – Coun s o Signi ican Ho -Spo Analysis Clus e s
Figu e 3.11 - Anselin Local Mo an’ I
When i comes o numbe s o ooms a ailable pe Pa ish, mos o he a ailable ooms
a e ound in pa ishes whe e he signi ican clus e s domina e. As such, A enidas No as,
A eei o, Al alade, San a Ma ia Maio and Mise icó dia hold he la ges quan i ies.
Addi ionally, a high coun o bed ooms p edomina es he cen al pa ishes o Lisbon, as
26
he bed ooms end o dec ease apidly owa ds he no h bo de s and dec ease
ma ginally owa ds he sou hwes and sou heas bo de s.
Following his app oach, a ew bina y a iables we e pu unde inqui y and esul s o a
Ho Spo Analysis a e subsequen ly shown in Table 3.6.
Va iable
Pa ish – Ho spo
Pa ish – Coldspo
Male Landlo d
Lumia , San a Cla a, Ben ica,
Al alade, Bea o, Penha de F ança,
Belém
San o An ónio,
A oios
Female Landlo d
Ca nide, Al alade, Lumia , San a
Cla a, Pa que das Nações
São Domingos de
Ben ica, A eei o
No Landlo d
A enidas No as, Campolide,
A oios, San o An ónio
Al alade, Lumia ,
Ben ica
Has Ou doo A ea
Ajuda, Ma ila, Oli ais, Es ela,
Campo de Ou ique
A enidas No as
No Ou doo A ea
Alcán a a, San a Ma ia Maio ,
Ma ila, Mise icó dia, São Vicen e,
A eei o
Lumia , Al alade,
Oli ais, São
Domingos de Ben ica
Ou doo A ea N/A
Campolide, Ca nide, Lumia ,
Al alade, A enidas No as
Oli ais, Ma ila,
Belém
Table 3.6 – Ho -Spo s and Cold-Spo s o Pa ishes
These ho spo s can indi ec ly in oke knowledge abou he pa e n – and i can be seen
ha mos ooms ha a e en ed in an apa men wi h a hos appea in all pa ishes bu
he cen al ones. This signi ies he a ea in ques ion is likely o be comp ised o s uden -
domina ed apa men s and i includes he pa ishes o Al alade, A eei o, A enidas
No as and San o An ônio. ‘Male Landlo d’ ho -spo s a e ound bo h in he Pa ishes in
he no h and on he i e coas , bu ‘Female Landlo ds’ do no appea as ho spo s on
any coas al pa ish. An exis ing ‘Ou doo A ea’ ho -spo s appea equen ly in Ajuda
and Alcán a a, bu ho -spo s o apa men wi hou i appea equen ly in all pa ishes
alongside he coas (in which Ajuda and Alcán a a also belong). Rooms belonging in
apa men wi h ‘Non-speci ied Ou doo A ea’ also show a ew ho spo s in he mos
cen al pa ishes.
Iden i ica ion o Co ela ed P edic o s and Linea Dependencies - The da ase
con ains many a iables, and a pai wise check is done o emo e a iables ha migh
bias he eg ession. All p edic o s ha a e co ela ed wi h abo e 85% a e hus emo ed.
Da a No maliza ion – The da ase la gely con ains da a in e y di e en me ics
(me e s, quan i ies and bina y a iables) – he min-max ange is applied so he e exis s
a common scale ha would no lead o any dis o ing di e ences in he ange o alues.
Da a Agg ega ion – As he spa ial applica ion o hedonic p ice modelling h ough he
‘spa ial eg’ R package equi ed polygons neighbou s o calcula ing he lagged
in luence o he exogenous a iables, di e en da ase is c ea ed o applying HPM. A
spa ial join is pe o med using he laye o he Census Blocks a he 4 h le el wi h he
laye o ooms and i s ea u es. Fo each polygon, he a e ages s a is ics o he lis ings
belonging in he mapping uni is calcula ed. The esul ing shape ile hen con ains 987
polygons ha deno e only census blocks o which he e a e lis ings p esen .

27
Coun o Dwellings pe Block
# o Census Blocks
To al Rooms
1
503
503
2
218
436
3
113
339
4
63
252
5
36
180
6
15
90
7
12
84
8
11
88
9
7
63
11
3
33
14
2
28
10
1
10
12
1
12
13
1
13
18
1
18
987
2149
Table 3.7 – Coun o Agg ega ed Dwellings in Blocks
T aining and Tes ing Spli – The HPM is o be buil o measu e how well he da a can
i accoun ing o he e o o he esiduals h ough he spa ial-speci ic chosen models,
and he whole da ase is used, as he knowledge o he neighbou polygons a iables is
needed.
The SVR model, on he o he hand, needs o be i s ained o be able o es he
pe o mance on a di e en unseen se . In o de o a oid he o e i ing p oblem (Zang,
Be a di, & Rei e mano á, 2010), a sepa a e es ing da ase is alloca ed o check whe he
he algo i hm pe o ms well only because i has memo ized he pa e ns on he aining
se oo well.
The p ocess o o e i ing can also be waned by K-Fold c oss- alida ion, which can be
in oked as a con ibu ing pa ame e wi hin he ‘e1071’ lib a y wi h which he SVR
model is buil . The choice o k is usually 5 o 10, al hough a o mal bes - alue o K
does no exis . In gene al, as k ge s la ge , he di e ence in size be ween he aining
se and he esampling subse s ge s smalle . As his di e ence dec eases, he bias o he
echnique becomes smalle (Kuhn & Johnson, 2013).
3.5.4 Spa ial Econome ics and Machine Lea ning
As a las s ep in he me hodology, di e en subse s o he clean da ase a e o be es ed
o compa isons o a iables’ in luence, and he assessmen will be done wi h he
da ase s con aining:
• All a iables (applied o HPM and SVR)
• Only non-spa ial a iables (applied o HPM, SVR, SOM)
• Only spa ial a iables (applied o HPM and SVR)
• All signi ican a iables om HPM (applied o SVR and SOM)
28
4. RESULTS AND DISCUSSION
Fo compa ison o he di e en eg ession models applied, Adjus ed R2 and Akaike
In o ma ion C i e ion (AICs) me ics a e used.
4.1 Spa ial Dependence
OLS was pe o med on he da ase , and on ha model, he Global Mo an I s a is ic was
compu ed o e he esiduals. The null hypo hesis assumes no spa ial dependence, and
he esul s show he ollowing:
• S anda d de ia ion = 1.751
• p- alue = 0.03583
Al e na i e hypo hesis: GREATER
Sample Es ima es:
Obse ed Mo an Index
Expec ed Index
Va iance
-0.0624
-0.1157
0.0008
Table 4.1 - Local Mo an’s I
The p- alue below 0.01 p esen s a s a is ically signi ican ejec ion o he ini ial null
hypo hesis. The da a unde analysis leads o spa ial esiduals, and spa ial models a e
deemed app op ia e in o de o make he e ec s o spa ially dependen e o s disappea .
The LaG ange Mul iplie es diagnos ics addi ionally gi es di ec ions o whe he he e
is a signi ican imp o emen o he model i i spa ial models we e applied. Resul s can
be seen in Table 4.2 below:
Model
p- alue
SAR
0.9457
SDEM
0.0042
SARMA
0.0166
Table 4.2 – Models Imp o emen
The p- alue sugges s ei he Spa ial Du bin E o Model (SDEM) o Spa ial
Au o eg essi e Mo ing A e age (SARMA) can b ing a signi ican imp o emen ,
al hough SAR is deemed un i (insigni ican p- alue). Acco ding o Luc Anselin, he
bes app oach is o con inue wi h he one wi h he lowes p- alue, which in his case
was he SDEM (Anselin, Be a, Flo ax, & Yoon, 1996). Ano he model in oduced is
SLX, in o de o be able o compa e models ei he wi h local (SLX) o global (SDEM)
spillo e s in he dis u bances.
29
4.2 Spa ial Lagged X
When applying an HPM eg ession, he con ibu ing in luence o indi idual a iables
is compu ed. The numbe o s a s assigned nex o a a iable indica es i s signi icance.
Coun s o how many o each signi icance ype is ound o he model ha includes all
a ailable a iables is shown in Table 4.3.
Code
P obabili y (> |)
Coun o Va iables
***
>0.001
3
**
>0.01
6
*
>0.05
38
X
>0.1
41
Table 4.3 – Signi icance Pe cen age
The esul s ha e a esidual s anda d e o o 114.7€ which amoun s o a MAPE o 15%
on p edic ing a oom p ice wi hin census blocks ha has agg ega e desc ip i e s a is ics
o maximum p ice o 950€ and a minimum o 200€ among hem.
The a iables ha a e deno ed as impo an excluding he X in e cep amoun o 97
a iables. The mos signi ican di ec e ec ones (abo e 95% signi icance) a e p esen
in Table 4.4 below:
Va iable
Es ima e
SE
- alue
P (>| |)
Sig.
C. o Bed ooms
-199.908
54.823
-3.646
0.00001
***
Male Landlo d
-135.44
20.312
-6.668
0.00031
***
MD o Club
20.344
7.799
-2.609
0.00958
**
MD o Viewpoin
89.951
33.764
2.664
0.00817
**
MD o Thea e
51.507
18.864
2.73
0.00672
**
Lag Cen alHea _F
-271.162
97.123
-2792
0.00560
**
Lag C. o Bed ooms
-126.196
46.517
-2.713
0.00708
**
Lag Ele a o N/A
350.502
159.086
2.203
0.00283
**
Table 4.4 – Signi ican Va iables – Model using All Va iables
F om hese a iables, i is in e ed ha he exis ence o a male landlo d li ing inside
he apa men makes he p ice o he oom be a subjec o nega i e in luence. This may
esul om he ac ha he ooms a e mos ly used be ween 6 mon hs and 1 yea , and
as such a e pe ec o ei he s uden s o people ha ha e ecen ly s a ed wo king. In
his sense, o eigne s ha wan o expe ience Lisbon may end o ei he g a i a e
owa ds an apa men ha he e is no landlo d li ing in, o expe ience mo e eedom
du ing hei s ay – o hey s a is ically alue a emale pe son li ing o aking ca e o an
apa men much mo e han a male pe son. S ill, on a e age ooms wi hou landlo ds a e
p iced highe . This signi icance can be ein o ced by s udies ha con i m ha young
adul hood has become a dis inc new li e phase (Be houd, Ge shuny, & B i ish
Household Panel Su ey., 2000). Du ing his phase, people alue and choose o li e in
pee -sha ed households and quasi-communes wi h people likely o be hei own age,
a he han li ing wi h a landlo d (Hea h, 2004).
30
Howe e , simila s udies ha measu e a hos ’s gende signi icance in he p ices o
sho - e m s ays applied on an Ai bnb da ase co obo a e no impac on i , as opposed
o de ec ion o signi ican acial disc imina ion (Kaka , Voelz, & Wu, 2017).
The numbe o bed ooms a iable impac in decline o p ice comes also as gene ally,
apa men s end o ha e one ki chen o use and hus, he spaces would be subjec o
sha ed use among people ha a e no necessa ily amilia wi h each o he .
F om he spa ial ones, he mos signi ican ones deno e he minimum dis ance om a
iewpoin as a posi i e coe icien . This means apa men s close o a iewpoin would
be lowe -p iced. This migh be a esul as hese iewpoin s a e o en o -g id o whe e
mos daily ac i i ies happen, and li ing close o a iewpoin can be o en connec ed o
an upwa d slope when looking a he oom as a des ina ion. Coun s o uni e si ies
wi hin 500 me e s and ams wi hin 1km also all yield posi i ely in luencing a iables
(T oy & G o e, 2008). The anspo a ions’ e ec s a e no unique o mid- e m en als
as i has been p o en hey a e ound in esiden ial p ope y alue indices wi hin he
same s udy a ea, and u he hey can be used o o ecas possible upwa d p ice changes
i an a ea is a subjec o new anspo a ion in es men s (Ma ínez and Viegas, 2009).
A lag o he dummy a iable signi ying he exis ence o an ele a o wi hin he buildings
o he apa men s lis ed wi hin a census a ea close o he one being en ed would seem
a e ched o ha e an in luence in p edic ing p ice – bu i migh be ha he i s ule o
nea by hings being mo e simila han a ones comes o play he e – and buildings wi h
no ele a o s migh beha e in a clus e ed way. Howe e , he in luencing s eep
coe icien o 350 aises a ques ionable impac .
F om he a iables wi h less signi icance, he ollowing coun s a e p esen :
Type o a iable
Signi icance “*”
Signi icance “X”
Spa ial
14
13
Spa ial Lagged
8
19
Census
5
2
Census Lagged
3
3
Non-Spa ial
2
1
Non-Spa ial Lagged
3
2
To al
35
39
Table 4.5 - Coun o Signi ican Va iables in SLX
Adding each o he a iables’ e ec combined wi h i s lagged coun e pa ’s indi ec
e ec yields he o al signi icance o a iable. In his way, a s a is ically insigni ican
a iable wi h i s s a is ically insigni ican lagged coun e pa migh yield a s a is ically
signi ican a iable o he model. The di e ences be ween he wo models include a
diminishing amoun o a iables being signi ican , bu spa ial ones ha appea o be
impo an in he model include a uni e si y wi hin 0.5km, a ou is ou (coun s wi hin
bo h 1km and 0.5km), and a non-spa ial posi i e one deno ing ha he hos has disclosed
whe he he apa men has cen al hea ing. This, howe e , migh lead o di e en
knowledge – apa men s wi h mo e missing da a migh be less desi able o en .
When subse s o he a iables a e applied he esul s di e ma ginally, bu he AIC’s
me ic does no imp o e. I can be no ed ha he a iables signi ican wi h con idence
abo e 95% s ay he same in bo h he non-spa ial model and he spa ially en iched one.
37
o eseeable u u e, and la e e ise he oom o a less expensi e p ice when he e is less
ime o ind a sui able enan o he p oposed loca ion. This is a s a egy ha is
commonly used in sho - e m en als by mo e expe ienced hos s ha manage mo e
lis ings as i helps in maximizing p o i s (Gibbs, Gu en ag, G e zel, Yao, & Mo on,
2018).
These dynamics could be o e come i he e is a mul i- empo al egis e ing on p ice
modi ica ions o e he s udy a ea aken h oughou di e en mon hs wi hin he yea .
Figu e 4.7 - Boxplo s o 4 Highly Signi ican P oxies - SDEM
Addi ionally, boxplo s o signi ican a iables a e shown in Figu e 4.7 abo e. These
boxplo s ep esen agg ega ions o anges o he p ice on he X-axis , and a signi ican
a iable o choice on he Y-axis, wi h he ed line deno ing he 10 h and 90 h pe cen ile
o i s alues wi hin he gi en p ice ange.
F om he boxplo s, i can be no ed ha coun o uni e si ies wi hin 1km ha e a sligh
endency o co ela e o a aise in a lis ing’s p ice. As is, his is a desi able geog aphic
loca ion o a s uden . As la e indings sugges he housing ma ke in Lisbon is
exhibi ing an accommoda ion sho age and housing c isis (Cocola-Gan and Gago,
2018), he hos s migh eel he highe p ice will no impede hem om inding a enan .
This inding ollows and ea i ms s uden i ica ion li e a u e claims ha s ess
p oximi y o campuses as a main d i ing o ce in choice p ocesses o s uden clus e s
wi hin a ci y (Sage, Smi h, & Hubba d, 2012).

38
F om he o he a iables, i is ound ha cheape ooms ha e e y ew, i a all, cul u al
acili ies a ound hem. The minimum dis ance o a hea e also eco ds a sligh
downwa d spi al wi h he lis ings wi h highes p ices esiding closes o his ameni y.
Ano he a iable ha ollows a simila s uc u e is he coun o elec onic s o es wi hin
1km. Ne e heless, wi h 427 elec onics s o es h oughou he s udy a ea, i is likely
ha mos o hem ha e clus e ed ho spo s in cen al pa ishes whe e his in luence s ems
om. The coun o elec onic s o es wi hin 1 km o he lis ing dis ibu ed among he
pa ishes o he s udy a ea a e shown on a cho ople h map in Figu e 4.8 below and ha
assump ion can be empi ically con i med.
Figu e 4.8 – Elec onic S o es pe Pa ish
To con inue he analysis, a da ase con aining only he signi ican a iables as deno ed
by SDEM is ex ac ed and u he applied o c ea ing an SVR model.
4.4 Suppo Vec o Reg ession
Be o e applying SVR, he da ase s a e di ided in o a aining (85%) and es ing da ase
(15%) wi h andomized ows aken as aining samples. The ou pu s models’ e o s
ange be ween 80 and 150, al hough a MAE ha di e s a lo be ween a aining and
es ing se poin s o an o e i ed model, so esul s need o be analysed ca e ully and
pa ame e choices subsequen ly uned.
In Table 4.11, a g id sea ch o he hype pa ame e op imiza ion is shown. The minimal
alue o he accu acy me ic o RMSE as gi en by e1071 inds he model ha bes i s
he da a.
39
Pa ame e
Sea ch G id Values
Coun
C
0.001,0.01,0.1,1,5,10,50,250,500
9
ε
0.001, 0.01, 0.1, 0.3, 0.5, 1.5
6
𝜸𝜸
.0001,.001,.01,.1,1, 2
6
Models Tes ed
324
Table 4.11 – Hype pa ame e Op imiza ion
Va Inclusion
C
ε
𝜸𝜸
SV
SV%
RMSE (€)
RBF All (M1)
10
0.3
0.001
1109
65%
133
RBF Spa ial (M2)
1
0.5
0.01
909
52%
147
RBF Non-Spa (M3)
5
0.3
0.01ssd
1079
62%
130
RBF Sign (M4)
5
0.5
0.1
888
67%
143
Lin All (M5)
0.1
0.5
/
907
52%
155
Lin Spa ial (M6)
0.001
0.5
/
906
52%
157
Lin Non-Spa (M7)
0.1
0.5
/
905
52%
146
Lin Sign (M8)
0.01
0.5
/
888
52%
141
Table 4.12 – Bes Pe o ming Models
F om he p oposed hype pa ame e op imiza ion used on he SVR models (Table 4.11)
and he esul ing RMSE and SVs (Table 4.12), i can be no ed ha all models equi e a
subs an ial amoun o eco ds o be used (upwa d o 50%) o de ine he ma gins o he
hype planes. This is a con ibu ing p oo he e is no much egula i y in he da ase .
Mo eo e , a small sample o 2149 da a poin s o e 312 a iables migh be deemed as
oo li le aining da a o disce n a meaning ul hype plane.
The bes pe o ming model s ill shows he non-spa ial inclusi e as he one ha bes i s
he da a. Ne e heless, he usage o spa ial a iables in addi ion seems o p oduce a
model wi h a compa able beha io in bo h he coun s o suppo ec o s and RMSE.
Mo eo e , he linea ke nel pe o ms compa a i ely wo se o all he da a subse
choices.
In Table 4.13, he MAE me ic o he bes models is shown (see Table 4.12 o model
names). In model M1, i can be no ed ha he ain and es pe o mance di e
subs an ially. Addi ional g id sea ch o e he same da ase wi h a lowe alue o he
pa ame e C (0.1) was done, and a new app op ia e model is calcula ed. In Table 4.13,
his model is deno ed as M9:
Model
MAE T ain (€)
MAE – Tes (€)
R2 – T ain
R2 - Tes
M1
60.78
102.93
0.80
0.44
M2
84.95
114.46
0.66
0.32
M3
83.96
98.96
0.55
0.37
M4
104.78
110.15
0.42
0.26
M9
115.08
114.35
0.33
0.23
Table 4.13 – MAE on Bes RBF Ke nel Models
40
The new aining and es ing e o s in model M9 a e much mo e compa able al hough
hey p oduce a much wo se i . The a iabili y o he da a is no cap u ed well, no in
he aining, no in he es ing se .
Model M3 using only he non-spa ial a iables is s ill he bes p edic o and a di e ence
o 16 eu os be ween aining and es ing da a p o ides p oo ha his model does no
o e i he da a.
The la ges a iables’ con ibu ion owa ds models M3 and M4 a e shown in Table 4.14
below.
M3 Va iable Impo ance
Con ibu ion (%)
Numbe o bed ooms
18.9
Numbe o ba h ooms
17.3
No P e e ed Gende
5.50
Double Bed - Dummy
5.20
No speci ied - Ele a o
4.90
Cen al Hea ing – T ue
4.90
Ou doo A ea – T ue
4.40
Single Bed- Dummy
4.30
Male Landlo d
3.50
Female Landlo d
2.40
Table 4.14 – Va iables Con ibu ions; Model M3 and M4
M4 – Va iable Impo ance
Con ibu ion (%)
Numbe o bed ooms
6.45
Bed oom - Single
3.26
Pa k Coun s – 250m
2.34
Room Squa ed – No Speci ied
2.17
Ele a ion
1.95
MD - Lodging
1.94
Tou is Tou Coun s – 500m
1.91
Viewpoin Coun s – 500m
1.80
MD – Real Es a e
1.79
Supe ma ke – 250m
1.74
Resul s sugges ha Model M3 gi es li le in luence o unique a iables, al hough i
uses a la ge ange o hem. Ne e heless, when he a iables a e sepa a ed in o spa ial,
and non-spa ial, i is compu ed ha he models gains con ibu ions cons i u e only 25%
om he non-spa ial ela ed a iables, and 75% impo ance om a iables ha a e
pe aining o he su oundings o he a ea. As he spa ial a iables a e only supposed o
be e he p edic ion o close he e o gap enough o jus i y hei use, i seems his
model has lea n o sepa a e he da a using hem as he p ima y exogenous a iables.
Ex ac ion o he Lag ange Mul iplie ’s coe icien s o he SV o he models did no
bene i he s udy as coun s o 852 and 601 SV’s coe icien s in model M3 and M4
acco dingly a e gi en he maximum mul iplie ’s alue as he o ce equi ed o en o ce
he cons ain s o he models.
41
Figu e 4.9 – SVM Reg ession – Residual E o s abo e SD Th eshold
F om mapping he high esiduals in Figu e 4.9, he wo models demons a e a di e en
e o beha io , whe ein model M3 in cen al Lisbon and ollow a high esidual pa e n
owa ds he sou h-wes bo de s o he a ea, whe eas M4 seems o ha e i s e o s sp ead
h oughou mos pa ishes. Mo eo e , he model pe o ms qui e well in ce ain
eguesias in he no h-eas e n egions o he case s udy whe ein no da a poin s wi h
la ge e o s a e ound. Howe e , he cen al a eas expe ience e sa ile p ices o which
a ma gin canno be ound – he spa ial a iables a e hus no help ul, bu hey a e
c ea ing close clus e s in he mos cen al pa ishes whe ein la ge coun s o many
ameni ies a e si ua ed. To ha e a be e o e iew o he aul s o each model, he wo
models a e compa ed h ough sca e plo s in Figu e 4.10 and Figu e 4.11 below:
Figu e 4.10 – Model Compa ison in Residual E o
42
Figu e 4.11 – Compa ison o E o s h ough B eaks’ Agg ega ions
Model M3 has a mo e s abilized e o beha io h oughou he anges when compa ed
o M4, acco ding o he b akes gi en. Model M4, on he o he hand, has a e y la ge
absolu e di e ence be ween he p edic ed p ice and he ac ual p ice o he oom o en
in he b eaks deno ing he highe anges. Howe e , bo h models ail o ind easoning
o p ices ising owa ds he uppe ange in gene al (and his is whe e he la ges
esiduals a e p oduced). The maximum absolu e e o s a e egis e ed in model M3 on
he posi i e scale (o e es ima ion o 395€) on an a e age p iced oom (450€), and M1
wi h -426€ unde es ima ion on a high p iced lis ing o 900€.
Figu e 4.12 – Residual E o Compa ison

43
4.5 Na u al Da a Clus e s using SOM and GeoSOM
Bo h SOM and GeoSOM clus e ing o he da ase s we e applied on Models M3 and
M4, o check whe he he s uc u e o he a iables would make simila -p iced ooms
join oge he , o i would jus o ce he o de o na u al geog aphic coo dina es o
o e ule he non-spa ial a iables impac . Di e en sizes o neu ons a e e i ied as
ollows: 10x1, 15x1 and15x10. Manual sepa a ion o clus e s a e elec ed isually using
he GeoSOM so wa e, wi h an icipa ions o clea e sepa a ion o he da a whils also
main aining a small opological e o .
F om he desc ip i e s a is ics o each clus e , unde s andings o a a iable’s agg ega e
beha io is o be ou lined. The SOM algo i hm clus e s o M4 we e chosen wi h a
opological e o a a alue o 0.01 and 14 numbe o clus e s. The clus e s show a e y
spa se beha io h oughou he s udy a ea. E en hough Clus e 3 neu ons on he U-
Ma ix showed a simila i y be ween hese eco ds, e y li le spa ial pa e n was
de ec ed when di iding hem be ween he pa ishes.
Figu e 4.13 – SOM Clus e s – Model M4
When i comes o he p ice a iable, he chosen clus e s’ minimum p ices anged om
a minimum a e age o 398€ in Clus e 2, up o a maximum a e age p ice o 607€ in
Clus e 10. Bo h o hese clus e s a e ound pa ially in he majo i y o he pa ishes.
When GeoSOM is used, mo e na u al o de o geog aphic clus e s appea , as imposed
by he limi ing adius pa ame e . In Figu e 4.14 below, he bina y a iables om he
GeoSOM clus e o M3 a e p esen ed on pa allel coo dina e plo s.
44
Figu e 4.14 – GeoSOM – M3 Bina y Va iables
Va iable/Clus e
1
2
3
4
5
C. o Bed ooms
3.08
4.55
2.78
3.36
3.07
C. o Ba h ooms
1.27
1.58
1.21
1.26
1.29
Minimum S ay
43.01 75.48 21.55 75.45 43.59
A e age P ice
506
454
403
434
420
Minimum P ice
110
200
200
225
100
Maximum P ice
1000
940
890
900
920
Table 4.15 – Clus e S a is ics o Nume ic Va iables in GeoSOM M3
Figu e 4.15 – GeoSOM – Model M3
45
Lis ings in Clus e 3 a e ela i ely indisce nible wi h hose om Clus e 4 in he no h-
eas bounda ies as shown in Figu e 4.15, and hey also blend wi h Clus e 2 in he
cen al a ea. A huge disc epancy can be no ed in he ‘Minimum-S ay’ a iable, wi h a
subs an ially low alue in Clus e 3 deno ing ha he e is no minimum-s ay ule o
hese lis ings. This clus e also desc ibes a high chance o a landlo d li ing in he
icini y o he apa men , co ela es wi h a smalle numbe o bed ooms, and missing
in o ma ion abou he exis ence o cen al hea ing. Al hough geog aphically hese
ooms ie in oge he wi h he wo o he clus e s, his clus e deno es an a ea whe e i is
mo e likely he owne is suble ing a oom o hei own li ing space o inc ease hei
li ing income. Unsu p isingly, he oom p ice he e is he lowes , al hough he la ges
di e ence be ween he minimum a e aged oom p ice Clus e and he maximum is only
103 eu os (12% o he p ice ange). Clus e 2 desc ibes ooms which a e no gende -
assigned, and con ain he la ges numbe o bed ooms wi hin one apa men . Clus e 1
acqui es he coas al pa ishes geog aphically, bu non-spa ial a iable wise he a e age
o he a iables a e mo e compa able o Clus e 2 wi h a sligh ly smalle pe cen age o
lis ings wi hou landlo ds, and a smalle a e age o ooms wi hin he apa men . Clus e
4 seems o ha e a high p obabili y o double beds wi hin he oom, and abou an equal
p obabili y o a landlo d possibly li ing in he lis ing. Clus e 5 is he one wi h he
second-lowes p ice a e age and a la ge lack o in o ma ion abou he ype o bed. This
a iable can p esumably be co ec ed by image p ocessing/analysis o exis ing images
o he oom, o de ec he bed size – an a ea ha could be u he explo ed.
Figu e 4.16 – SOM, Model M4
A he end, a SOM di ision using he SDEM signi ican a iables is made, wi h a choice
o 14 Clus e s o easie compa ison wi h Model M3. Al hough he e is a la ge
pe cen age o some clus e s being cons i u ed o one pa ish i is s ill ha d o pe cei e a
g ea di ision, as many clus e s ha e a he e ogenei y ha sp eads h oughou he whole
s udy a ea (e.g Clus e 2 and Clus e 7). The Mise icó dia a ea is he pu es pa ish
desc ibed by only 2 Clus e s (8 and 12), ollowed by San a Ma ia Maio wi h 3 Clus e s
(8 and 11 wi h mul iple lis ings and 1 lis ing in Clus e 5). Clus e 11 and 12 desc ibe
46
he mos expensi e lis ings om wo coas al pa ishes: San a Ma ia Maio and
Mise icó dia, wi h a e ages o 685€ and 721€ espec i ely. Clus e 8 con ains cheape
lis ings om he wo pa ishes mixed oge he . Clus e 9 desc ibes he cheapes lis ings
(a e aged), comple ely exclusi e o lis ings om he pa ishes o A oios and San o
An onio. These pa ishes by hemsel es, howe e a e no cheap, as lis ings wi h a wide
a ie y o p ices om he wo pa ishes can be ound in 7 and 8 clus e s o he p oposed
14, acco dingly.
4.6 O e iew o Gi en Analysis
The da ase was analyzed using spa ial econome ics, and wo ypes o HPM models
we e es ed (SDEM and SLX) as judged by he mos signi ican p- alue om he
Lag ange Mul iplie es diagnos ics. The spa ial speci ica ions o he models made use
o da a agg ega ion wi h 987 esul ing polygons desc ibing a e ages p ices wi hin he
blocks o he s udy a ea ha con ain a leas one lis ing.
The mos signi ican a iable in bo h SDEM and SLX, and u he in SVR was he coun
o bed ooms – and i bea s a nega i e coe icien . The dummy a iable ‘Male Landlo d’
also le eled a con idence o abo e 99% bea ing a nega i e coe icien . The SDEM
model ound 118 a iables o bea signi icance opposed o 44 om he SLX model.
Va iables deno ing minimum dis ance and coun s o ameni ies up o 250m ha e a high
equency in he mo e signi ican le els. 500m and 1km sha e lowe , bu also simila
equencies be ween one ano he . The impo ance o a iables deno ing a p oximi y o
ameni y abo e 1000m a e a ely a case o in e es , and only appea a signi icance le els
‘X’ and ‘*’.
The da a a iabili y wi hin he bes SDEM model was cap u ed wi h an R Squa ed o
0.92 deno ing 35.7€ e o . This p esen s 8% imp o emen o e he non-spa ially
en iched model. Usage o a high amoun o a iables aised ques ion o model’s da a
o e i ing. Sensi i i y analysis illus a ed as changes wi hin he coe icien s adjoined
o he a iables, hough he a iables signi icance yielded ma ginal di e ences.
Hype pa ame iza ion o he SVR pa ame e s allowed o c ea ion o a model ha i s
he o iginal da a poin s wi h an a e aged pe cen age e o o 11% o he p ice ange.
The spa ially en iched model esul ed in wo se pe o mance wi h a 12% mean absolu e
e o . All SVR models needed mo e han 50% o he da a as SVs, and he maximum
Lag ange Mul iplie coe icien was gi en o he majo i y o he SVs.
The bigges aul s in building his p edic i e model we e he bigge p iced lis ings
which a e ound o be as ly unde es ima ed. The models hus ail o ind a disce nable
pa e n o wha allows a highe p ice ag in a eco d.
A SOM model wi h all he signi ican a iables (as deno ed by SDEM) demons a ed
some geog aphically unde s andable clus e s – as wo ooms belonging o he same
node (o one e y close) would sha e e y simila p oxies s a is ics. Ne e heless, he
bigges denomina o s in he clus e di isions we e s ill he non-spa ial a iables which
we e illus a ed on а co esponding PCP igu e wi h a sho discussion he ea e .
53
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7. ANNEX
• Sample Que y – C ea ion o all eachable nodes om he lis ings wi hin 5KM
o hei icini y using he OSM Ne wo k and pgRou ing
• Sample Que y - Gene a ing Closes Nodes o Pa ks
57
• Sample Que y – C ea ion o Va iable: Coun s o T ams wi hin 2KM
58
• Sample Que y – C ea ion o Va iable: Minimum Dis ance o T ams

59
EVALUATION OF SPATIAL DATA’S IMPACT IN MID-TERM ROOM RENT PRICE THROUGH APPLICATION OF SPATIAL ECONOMETRICS AND MACHINE LEARNING
2020
Case S udy: Lisbon
Guia pa a a o ma ação de eses Ve são 4.0 Janei o 2006