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Comparative Study

This document presents a comparative study on house price prediction using machine learning, specifically focusing on a model developed for the Delhi real estate market. It evaluates three algorithms—linear regression, decision tree, and support vector machine—using metrics like mean square error and root mean squared error to determine the most effective approach. The findings indicate that the decision tree algorithm yields the best results, which can significantly aid investors and buyers in determining realistic property prices.

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Renee Winters
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22 views10 pages

Comparative Study

This document presents a comparative study on house price prediction using machine learning, specifically focusing on a model developed for the Delhi real estate market. It evaluates three algorithms—linear regression, decision tree, and support vector machine—using metrics like mean square error and root mean squared error to determine the most effective approach. The findings indicate that the decision tree algorithm yields the best results, which can significantly aid investors and buyers in determining realistic property prices.

Uploaded by

Renee Winters
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COMPARATIVE STUDY

OF
HOUSE PRICE PREDICTION USING MACHINE
LEARNING

BY-
SAMRIDHI TYAGI
INTRODUCTION
3

PROBLEM STATEMENT
4

TECHNOLOGY USED

Agenda EXAMPLE WITH


5

APPLICATIONS
6

RESULT
8

CONCLUSION
9
Introduction
• In this project we have built a
machine learning model to predict
the house prices of Delhi.

• This project will be very helpful ​for


real estate market. It can be used
by both house sellers and buyers.

• Here three different algorithms are


used and then using evaluation
matrices we will get the most
appropriate machine learning
algorithm.

2023 House Price Prediction 3


Problem statement
1. Prices of real estate properties are sophisticatedly linked with our
economy.

2. Despite this, we do not have accurate measures of house prices


based on the vast amount of data available.

3. Proper and justified prices of properties can bring in a lot of


transparency and trust back to the real estate industry, which is very
important for most consumers especially in India.

2023 House Price Prediction 4


Technologies
• Here machine learning algorithms like linear regression, decision tree
and
support vector machine are used to form thee predictive model
• Then evaluation matrices are formed on the basis of mean square
error
(MSE), root mean squared error (RMSE) and r² method.
• We will now output visualize these metrices by forming graphs and
output out our result.

2023 House Price Prediction 5


EXAMPLE

In this project, we will evaluate the performance and


predictive power of a model that has been trained and
tested on data collected from homes in Delhi. A model
trained on this data that is seen as a good fit could then
be used to make certain predictions about a home — in
particular, its monetary value. This model would prove to
be invaluable for someone like a real estate agent who
could make use of such information on a daily basis.

2023 House Price Prediction 6


Application
House price prediction has numerous practical applications in the real estate industry and
beyond. Some of the key applications include:
1. Real Estate Investment: House price prediction models are valuable tools for real estate
investors. They help investors identify properties with high potential for appreciation,
enabling them to make informed decisions on where to invest their capital.
2. Property Valuation: Real estate agents and property appraisers use house price prediction
to estimate the value of properties. Accurate valuation is crucial for sellers to set
competitive prices and for buyers to negotiate fair purchase prices.
3. Mortgage Lending: Lending institutions use house price prediction models to assess the
risk associated with mortgage loans. Predicting future property values helps lenders
determine the loan-to-value ratio and set appropriate interest rates.
4. Housing Market Analysis: Governments and policymakers analyze house price trends to
understand the overall health of the housing market. This information guides housing
policies, urban planning, and affordable housing initiatives.
5. Risk Management: Insurance companies use house price prediction to assess the risk
associated with insuring properties. Accurate predictions help them set appropriate
insurance premiums and manage potential losses .

2023 House Price Prediction 7


Result outp outp
ut ut
• For Lajpat Nagar

R
RMSE MSE
SQUARED

2023 House Price Prediction 8


Conclusion
So our model result out that decision
tree is the most suitable algorithm
giving ideal results, but there is still
room for improvements. In a real
world scenario, we can use this model
to predict house prices. It will check
for new data being provided to it and
produce better results. The accurate
prediction model would allow
investors or house buyers to
determine the realistic price of a
house as well as the house
developers to decide the affordable
house price.

2023 House Price Prediction 9


Thank you

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