Using Hierarchical Clustering Algorithms for Turkish Residential Market

Autor:	Ali Hepsen, Metin Vatansever
Rok vydání:	2011
Předmět:	Renting business.industry Real estate business Investment (macroeconomics) Cluster analysis Disease cluster Algorithm Metropolitan area Modern portfolio theory Hierarchical clustering
Zdroj:	International Journal of Economics and Finance. 4
ISSN:	1916-9728 1916-971X
Popis:	Clustering has a potentially important contribution to real estate portfolio analysis. In this study several hierarchical clustering algorithms are applied to rental returns for seventy-one metropolitan residential markets in Turkey. The aim is to develop homogeneous groupings for real estate portfolios. The historical clustering algorithms documented in this study provides a useful guideline for real estate investors to select appropriate market areas and formulate efficiently diversified investment portfolios. The empirical findings support the three-cluster partition of the districts that reveals a clear rental return distinction of residential markets in Turkey. Cluster 1 is composed of twenty nine districts, which have the lowest rental return levels over the period of 2007:M6 to 2011:M6. Thirty four districts are grouped in Cluster 2. The cities in this group have relatively higher rental returns. The rest eight cities belong to Cluster 3. Rental return levels are distinctively higher than the other two groups. On the other hand, high rental returns are associated with higher levels of risk (standard deviation), and vice versa.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::07b71d948d7e43891aa6e80655a66cf0 https://doi.org/10.5539/ijef.v4n1p138 Zobrazit plný text záznamu