A Mass Appraisal Model Based on Multi-criteria Evaluation: An Application to the Property Portfolio of the Bank of Italy.

This paper presents an application of multicriteria evaluation to select the property characteristics in order to estimate the most probable market value of a large public property portfolio. The methodology proposed, based on the involvement of key actors of the decision process, aim to support the decision process of value judgment in a more flexible way overcoming the difficulty presented by econometric models due to the scarcity of a large sample data; it is referred to a multi-parameter estimated model and tested on a large property portfolio owned by the Bank of Italy. The application has shown that this type of procedures can be a reliable tool to analyse the real estate values and solve estimation problems concerning consistent real estate assets on which analytical methods and regression models are hardly applicable due to the scarcity of data.