Predicting

House Prices in
India
Exploring the potential of Decision Tree
Models for accurate real estate price
forecasts in the dynamic Indian market.

Artificial
Intelligence
Predicting
House Prices in
India
An in -depth analysis of Decision Tree Models
tailored to the unique characteristics of the
Indian real estate market.

Artificial
Intelligence
PROPERTY
House Price Prediction
-

House Price
Prediction Using
Decision Tree Model
Adapted for Indian Real Estate Context with insights into market
trends and predictive analytics.

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 Importance of Accurate Factors Considered Objective of the Model
Predictions
Accurate predictions are vital for buyers, Key factors influencing property prices The primary objective is to develop a
sellers, and developers, especially in include the number of bedrooms and predictive model that accurately captures
India's rapidly evolving real estate market, bathrooms, overall house size, plot size, price variations in major urban areas
where price fluctuations can significantly and the age of the property, which all such as Mumbai, Delhi, and Bangalore,
impact investment decisions. contribute to value assessments. aiding stakeholders in making informed
decisions.

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Pro perty
Dataset

Dataset
Overview
A Comprehensive Summary of Property Records
and Key Variables

I 10,659’
e
'T17 Lakh to '3'95 1-4 I 250-5,000
d
’ ° Crore Bedrooms sqft
Extensive dataset size Wide sale price range (Average: 3] Typical lot sizes
A robust dataset comprised of The sale price range of Z17 Variet\j in bedroom count
Thelot sizes ranging from
10,659 propeKy records ensures Lakh to Z95 Crore indicates a Properties vary from 1 to 4 250 to
a reliable basis for analysis, diverse market catering to bedrooms, with an average of 3, ,OOO sqft reflect typical
allowing for comprehensive variou s buyer segments, from suggesting that the dataset Indian property dimensions,
insights into the real estate affordable housing to luxury appeals to both smalL which are crucial for
market. properties. families and larger households. understanding land use
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 % Property Insights
'¥' 65 —
Apartments Exploratorg Data
+
%
20% Analgsis
'¥' villas
15 Insights and Observations on Property
Prices in
Plots India

Data cOmp ile d frOm real estate m arket re

pOrts
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 Eliminated features that do not
Removed Irrelevant contribute to the analysis, such as the
Feat ures property registration number, to
streamline data processing.

Data Preprocessing Steps —

Ensured consistency across data by

Data Preprocessing S tanda rdize d

Variables
standardizing
variables, such as converting prices
Key Steps in Preparing Data for Analysis into price per square foot, enhancing
comparability.

Transformed Converted categorical variables, like city

Categorical
names, into numeric codes to facilitate
Variables
easier processing and analysis in machine
learning models.

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Initial Model Performance
The initial model displayed significant overfitting, achieving an R* of 99% on
the
training data, while the testing performance dropped to a mere 53%. This
that the model was too complex and not generalizing well to unseen data.
indicates

Model Insights —
Optimized Model
The optimized model demonstrates a balanced performance with an R* of 78% on
training data and 70% on testing data. This shows a substantial improvement in
Model Development
generalization and predictive capability, making it more reliable for real-world Analysis of Initial and Optimized Model
applications. Performance

Keg Predictors
The primary factors influencing housing prices include home size, specific cities
such as Bangalore and Pune, and their proximi to IT parks, which
attract buyers looking for convenient living arrangements.
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Real Estate Insights
—
Keg Insights (Indian
Context)
Understanding Real Estate Trends and Valuations in
India

Properties exceeding 2,000 sqft are increasingly sought after in metropolitan

Larger
Homes areas, reflecting a shih towards more spacious living environments.

Locations close to major business districts, such as Bandra and Gurugram, command premium
Proximity to Business
Hubs pricing due to their strategic advantages for work and lifestyle.

In established neighborhoods like South Delhi, older homes retain

Older
Properties significant value, often due to their historical charm and prime locations.

Properties situated near essential amenities such as schools and hospitals experience
Location Importance
higher resale potential, making them attractive investments.

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Buyer Recommendations —

Recommendations for Buyers

Key Considerations for Property Purchases

Higher Carpet Area

Look for properties that offer a larger carpet area, as this can significantly enhance living
space and comfort for you and your family.

Connectivity to Keg Areas

Prioritize locations with excellent connectivity to metros and highways, ensuring
convenient access to essential services, workplaces, and entertainment hubs.
Re al Estate Insights
—

Recommendations
for Sellers and
Investors
Strategic Approaches for Maximizing
Value
House Price Insights —

COUCIUSİO/1
Summary of House Price Prediction in the Indian Real Estate
Market

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