A decision support system for real estate investment choice

The evaluation of real estate assets is currently one of the main focal points addressed by territorial marketing strategies with a view to developing high-performing – or competitive – cities. Given the complexity of driving forces that determine the behaviour of actors in a real estate market, it is necessary to identify a priori the factors that determine the competitive capacity of a city to attract investments to this market. Therefore, we need a measureable decision support system that takes into account the key factors that determine the ‘attractiveness’ of such investments in a competitive context. In the present paper we aim to design an integrated complex evaluation model that is able to map out and encapsulate the multidimensional spectrum of factors that shape the attractiveness of alternative real estate options. From an analytical perspective, we will select relevant attributes for the specification of a random utility model capable of simulating the behaviour of market operators when they are faced with a choice between alternative real estate investment sites. Specifically, a multidimensional assessment model in a decision-making context is developed in which the choice between alternative discrete investments takes place under conditions of uncertainty. This model serves two purposes: (i) it responds to the need to define the ‘attractiveness’ of an area with respect to real estate investments, and (ii) it explains what characteristics of the