Appraising building area’s index numbers using repeat values model. A case study in Paternò (CT)

The knowledge of real estate prices trend over time is requisite to understand and expect dynamics of real estate market, and is useful to construct index numbers of real estate prices, numerical indicators exploitable to understand real estate profitability and land phenomena in different market segments. This work aims at the construction of prices index numbers relevant to building area site in the town of Paternò, in Catania province, and at the corresponding hedonic prices index numbers linked to the main real estate characteristics in the space of a period that goes from 2004 to 2012. The proposed methodology allows to build the index numbers of the building area’s unit prices in the complex Italian real estate market, in order to explain appreciation/depreciation of the relative rates and hedonic prices index numbers of real estate characteristics. Index numbers building is done with the method known as Sistema Generale di Stima (SGS), in order to simulate the technique of repeated sales.