10 V May 2022

https://doi.org/10.22214/ijraset.2022.43190
 International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 10 Issue V May 2022- Available at www.ijraset.com

House Price Prediction Using Machine Learning

Kumari Sandhya1, Sarwar Siddiqui2
1, 2
CSE Dept, SRMCEM Lucknow

Abstract: Real estate is the least transparent industry in our ecosystem. Housing prices keep changing day in and day out and
sometimes are hyped rather than being based on valuation. Predicting housing prices with real factors is the main crux of our
research project. This paper outlines how to predict housing costs using various regression techniques using the Python library.
The proposed method takes into account the sophisticated aspects used in the house price calculation and provides a more
accurate forecast. This paper uses machine learning to explain how the house price model works and which datasets are used in
the proposed model. Predictive models to determine the selling prices of homes in cities like Bangalore are maintained because
of more than difficult and sophisticated tasks. The price of real estate for sale in cities like Bangalore depends on several factors
involved.
Keywords: Housing Price Prediction , linear regression, XGBoost,, Machine Learning, Lasso Regression, Ridge Regression,
Random Forest Regression.
I. INTRODUCTION
House is one of the basic needs for a person and their prices vary from place to place depending on available amenities like parking
space, locality etc. Buying a home is one of the biggest and most important choices for a family as they put all of their funds into
investments and cover them over time with loans. Modeling using machine learning algorithms, when machines learn data and use
it provide new data. Like all of us namely the proposed model for accurate forecasting future results have economic applications,
banking, business, e-commerce, healthcare industry, entertainment etc. In metropolitan cities like Bangalore, potential buyers
consider a number of factors such as location, land size, distance from parks, schools, hospitals, power generation facilities and
especially the price of the house. As we see suitable, we can use the model to predict monetary value of this particular residence
property in Bangalore.

A. Objective
This project is proposed to predict house prices and get more accurate and better results. This number will be of great help to
everyone because house price is a topic that many people care about, whether they are rich or middle class, because one can never
judge price or estimate the price of a home based on local or properties available. To perform this task python programming
language is used.

B. Machine Learning
Machine learning is an area of artificial intelligence that allows PC frameworks to learn and improve their execution using
information. Machine learning is an area of artificial intelligence that allows PC frameworks to learn and improve their execution
using information.

C. Python
Python is a high-level programming language for general purpose programming. It allows explicit programming on large and small
scales. It is an easy to read language. Python supports various libraries such as Pandas, NumPy, SciPy, Matplotlib etc. Python is a
particularly useful language for improving the web and advancing programming.

II. LITERATURE REVIEW

There are a number of things that affect home prices. In this exploration, divide these components into the three essential sets,
which have state of being, thought , and territory. States of being are homes confined through a residence that may be visible
through human recognizes, which includes the variety of the residence, the quantity of rooms, the availability of kitchen and
parking space, the openness of the backyard nursery, the sector of land and structures, and the age of the residence, whilst the
concept is an concept supplied through architects who can pull in capacity, for instance, the opportunity of a mild home, robust and
inexperienced condition, and global magnificence condition.

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 3714
 International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 10 Issue V May 2022- Available at www.ijraset.com

III. METHODOLOGY

A. Data Description
Each record in the database describes a Bangalore suburb or town. The data was drawn from the Bangalore Standard Metropolitan
Statistical Area (SMSA) in 2017. The attributes are defined as follows :-
1) Area_type : Area of the Property in which they exist
2) Availability property's status as in 'ready to move' or still under construction.
3) Location : name of locality
4) Size : No. of Bedrooms along with 1 Hall and 1 kitchen.
5) Society : Name of the society
6) total_sqft : Area of the Property in square feet
7) Bath : No. of bathrooms
8) Price : price in Inr

B. Data Collection
Data collection is the systematic process of gathering information about variables. It helps to find answers to questions,
hypothesizes too much and evaluates results. Collecting data as the pathway to social events and estimating data on targeted factors
within the built-in framework, at this stage allowing related queries to be answered and evaluate the results.

C. Data Visualization
Data Visualization is the pictorial or graphical representation of information. It enables to grasp difficult concepts or identify new
patterns. This includes creating and investigating visual representations of information.

D. Data pre-processing
This is the process of transforming the data before it is fed to the algorithm. It is used to convert raw information into a clean data
set. This is a information mining strategy that involves transferring raw information into a logical organization Enter raw
information in a logical organization. The result of preprocessing data is the final dataset used for preparation and reason for testing.

E. Data Cleaning
Data cleaning is the process of detecting and removing errors to increase the value of data. Data cleaning is performed using data
processing tools. That's way to identify and modify off-base records from a record set, table or database. It finds the missing
information and replaces the scrambled information. information is edited to ensure it is correct and accurate.

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 3715
 International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 10 Issue V May 2022- Available at www.ijraset.com

IV. REGRESSION MODELS AND EVALUATION METRICS USED

Linear regression is one of the most popular algorithms in statistics and machine learning. The goal of a linear regression model is
to find the relationship between one or more characteristic variables.

A. Basic Linear Model

The formulation for multiple regression model is :

The assumptions in the model are

1) x The error terms are normally distributed.
2) The error terms have constant variance.
3) The model carries out a linear relationship between the target variable and the functions.

B. Ridge Regression
Ridge regression is a method of estimating the coefficients of multiple-regression models in scenarios where linearly independent
variables are highly correlated. It has been used in many fields including econometrics, chemistry, and engineering. In
mathematical form , the model can be expressed as y=xb+e. Ridge regression is a model tuning method that is used to analyze any
data that suffers from multicollinearity.

C. Lasso Regression
Lasso regression is a regularization technique. It is used over regression methods for a more accurate prediction. This model uses
shrinkage. Shrinkage is where data values are shrunk towards a central point as the mean. The lasso procedure encourages simple,
sparse models. The word “LASSO” stands for Least Absolute Shrinkage and Selection Operator. It is a statistical formula for the
regularisation of data models and feature selection.

D. SVR (Support Vector Regression)

SVMs or Support Vector Machines are one of the most popular and widely used algorithm for dealing with classification problems
in machine learning.
In machine learning, Support Vector Machines are supervised learning models with associated learning algorithms that analyze data
used for classification and regression analysis. In Support Vector Regression, the straight line that is required to fit the data is
referred to as hyperplane.

E. XGBoost Regression Model

XGBoost stands for Extreme Gradient Boosting and is the most efficient method for regression or classification problems. This is a
decision tree based algorithm using the gradient boosting framework. This provides the ability for the to have a significant impact
on the performance of the model.

F. Random Forest Regression

Random Forest Regression is a supervised learning algorithm that uses ensemble learning method for regression. Ensemble learning
method is a technique that combines predictions from multiple machine learning algorithms to make a more accurate prediction
than a single model.
V. CONCLUSION
Home selling prices are calculated using various algorithm. Selling price calculated with better accuracy and accuracy than. This
will be of great help to people. Various factors that affect home prices need to be considered and addressed.

VI. FUTURE WORK

The accuracy of the gadget may be improved. Several extra cites may be protected withinside the gadget if the scale and
computational strength will increase of the gadget. In addition, we can integrate different UI/UX methods to better visualize the
results in in a more interactive way using Augmented Reality.

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 3716
 International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 10 Issue V May 2022- Available at www.ijraset.com

REFERENCES
[1] H.L. Harter,Method of Least Squares and some alternatives-Part II.International Static Review.1972,43(2) ,pp. 125-190.
[2] J. Clerk Maxwell, A Treatise on Electricity and Magnetism, 3rd ed., vol. 2. Oxford: Clarendon, 1892, pp.68-73.
[3] Lu. Sifei et al,A hybrid regression technique for house prices prediction. In proceedings of IEEE conference on Industrial Engineering and Engineering
Management: 2017
[4] R. Victor,Machine learning project:Predicting Boston house prices with regression in towards datascience.
[5] S. Neelam,G. Kiran,Valuation of house prices using predictive techniques, Internal Journal of Advances in Electronics and Computer Sciences:2018,vol
5,issue-6
[6] S. Abhishek.:Ridge regression vs Lasso,How these two popular ML Regression techniques work. Analytics India magazine,2018.
[7] S.Raheel.Choosing the right encoding method-Label vs One hot encoder. Towards datascience,2018
[8] Raj, J. S., & Ananthi, J. V. (2019). Recurrent Neural Networks and Nonlinear Prediction in Support Vector Machines. Journal of Soft Computing Paradigm
(JSCP), 1(01), 33-40.
[9] Predictinghousepricesin Bengaluru(Machine Hackathon) https://www.machinehack.com/course/predicting -house-prices-inbengaluru/
[10] Raj, J. S., & Ananthi, J. V. (2019). Recurrent neural networks and nonlinear prediction in support vector machines. Journal of Soft Computing Paradigm
(JSCP), 1(01), 33-40.
[11] Pow, Nissan, Emil Janulewicz, and L. Liu (2014). Applied Machine Learning Project 4 Prediction of real estate property prices in Montréal.
[12] Wu, Jiao Yang(2017). Housing Price prediction Using Support Vector Regression.
[13] Limsombunchai, Visit. 2004.House price prediction: hedonic price model vs. artificial neural network.New Zealand Agricultural and Resource Economics
Society Conference.
[14] Rochard J. Cebula (2009).The Hedonic Pricing Model Applied to the Housing Market of the City of Savannah and Its Savannah Historic Landmark District;
The Review of Regional Studies 39.1 (2009), pp. 9– 22.
[15] Gu Jirong, Zhu Mingcang, and Jiang Liuguangyan. (2011).Housing price based on genetic algorithm and support vector machine”. In: Expert Systems with
Applications 38 pp. 3383–3386.

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 3717