An econometric model to determine the value of sale of real state projects in Santiago city

Abstract

Santiago city is located in Metropolitan Region of Santiago, it is the capital of the chilean Republic and 6,257,516 inhabitants live there. There is no finished study that shows the main variables that affect the final sales value of the real state projects of Santiago city. Therefor, using a linear regression model with a database of 552 real state projects in a range of 14 years, we determine which variables are the ones that most influence the final value of a real state Project in Santiago. We find that the most influential variables in the final price are the price of the land, construction cost and other real state expenses.