Forecasting the prices of villas in the city of Riyadh using Multiple and Simple Linear Regression

Abstract

The purpose of this study is to try to predict the prices of real estate. specifically, villas in different areas of Riyadh by creating simple equations that help estimate the price based on a number of variables the most important of which is the required space for villa. Data were collected from 2019 to the first quarter of 2022, which were 3469 deals. we used the method of simple and multiple linear regression and the use of the statistical program SPSS to find the required equations and deals. In Riyadh most of the deals were in the north, and the least was in the south, which accounted for 13% of the total transactions, and the availability of services in the neighborhood makes a significant difference in the number of deals in it and demand, also the proximity of the neighborhood to new projects makes a difference but less. It was also noted that prices in the north of Riyadh are constantly increasing and that the area factor is insignificant in the west and south, which shows that the trend of buyers of small spaces in the north in particular is caused by the rise in prices that vary in the south and west where the area variable becomes minor, and the correlation weakens