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Spatial Estimation of Housing Prices and Locational Rents

Department of Applied Economics of the University of Granada, Faculty of Business and Economic Sciences, Campus Universitario de Cartuja, s/n. 18011, Granada, Spain

This work stems from the widely accepted hypothesis that housing price is determined by two types of characteristic: structural and locational. Under this hypothesis, a methodology is presented for the spatial estimation of housing prices and locational rents: the Iterative Residual Kriging (IRK) method. The methodological aspects are complemented by the presentation of an application of this methodology to the case of housing in Granada, Spain.

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