A GIS-Based AVM for the land market value appraisal according to the market-oriented approach

Recently, the use of IT tools in the assessment of real estate properties has become very popular among appraisal specialists, bankers, and researchers in this field. Many automatic valuation models (AVMs) using different statistical and mathematical models, such as regression, neural networks, and fuzzy logic, and based on different technologies have been proposed and developed with the purpose of appraising the value of a property. In this paper, combining GIS tools and the basic principles on which the market-oriented approach is based, we suggest a GIS-based AVM that is useful for assessing land market value, believing that the complex nature of this type of property can be well described by the aforementioned GIS tools. We argue that the development of this model provides useful insights for public administrations to support them in the definition of management actions of the local real estate sector concerning, for example, practical purposes such as tax or expropriative compensation quantification.