house price prediction
house price prediction
BY
SANTHOSH S (22CS138)
SHRIYANS (22CS149)
SURUTHIKA C (22CS158)
VIJAY A (22CS166)
Submitted to the
BACHELOR OF ENGINEERING
NOVEMBER 2024
BONAFIDE CERTIFICATE
Certified that this Project Report titled, “HOUSE PRICE PREDICTION” is the bonafide record
Work under our supervision. Certified further,that to the best of my knowledge the work reported
herein does not form part of any other project report or dissertation on the basis of which a degree
Department of Computer Science & Engg., Department of Computer Science & Engg.,,
Submitted for the Viva-Voce examination held at SNS COLLEGE OF TECHNOLOGY, held
on ……………………………..
Examiner 1 Examiner 2
i
ACKNOWLEDGMENT
First of all, we extend our heart-felt Gratitude to the management of SNS College of Technology,
for providing us with all sorts of supports in completion of this mini project.
We are highly grateful to Dr.L.M.Nithya, Professor & Dean/CSE,IT & AIML for her valuable
suggestions and guidance throughout the course of this project, her positive approach had offered
incessant help in all possible ways from the beginning.
Words are inadequate in offering our thanks to the Project Coordinator, Mrs. Subhashree P,
Assistant Professor, Department of Computer Science & Engineering, for her encouragement and
cooperation in carrying out the mini project work.
We take immense pleasure in expressing our humble note of gratitude to our project guide, Mr.
Selvakumar N Assistant Professor, Department of Computer Science &Engineering, for his
remarkable guidance and useful suggestions, which helped us in completing the project work in
time.
We also extend our thanks to other faculty members, Parents and our friends for their moral support
in helping us to successfully complete this mini project.
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ABSTRACT
This project introduces a cutting-edge solution for predicting house prices using machine
learning algorithms, designed to transform the way real estate transactions are conducted. By
incorporating key features such as location, BHK (bedroom-hall-kitchen) configuration,
neighborhood area, and land area, the model provides reliable price predictions tailored to
individual property characteristics. In addition to these primary features, advanced algorithms are
implemented to evaluate critical secondary factors, including the quality of the neighborhood,
proximity to essential services like schools, hospitals, and public transport, and current market
trends. These factors enable the model to deliver more precise predictions that reflect the true
market value of a property.
A unique strength of the system lies in its ability to ensure fairness and transparency. The
model provides unbiased, data-driven price estimates, effectively addressing the issue of price
manipulation, which is common in traditional real estate practices. By relying on objective data
and statistical modeling, it helps buyers gain confidence in their decisions while offering sellers a
credible platform to showcase their properties. The project is further enhanced with real-time data
integration, allowing it to adapt to the ever-changing dynamics of the housing market. Real-time
updates ensure that predictions remain current, capturing trends like rising demand in a particular
area or seasonal fluctuations in property prices. This feature ensures that buyers and sellers can
make informed decisions based on the latest market insights.
The ultimate goal of this project is to provide a transparent and equitable platform for all
stakeholders in the real estate ecosystem. Buyers benefit from trustworthy price insights that guide
their investment decisions, while sellers gain a reliable estimation of their property’s value, helping
them set competitive prices. For real estate agents, the platform serves as a valuable tool for
negotiating deals that are fair to all parties involved. By promoting data-driven decision-making,
this machine learning-based system paves the way for a more efficient, informed, and trustworthy
real estate industry. It bridges the gap between buyers, sellers, and market realities, fostering
transactions built on trust and mutual benefit.
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TABLE OF CONTENT
ABSTRACT iii
1 INTRODUCTION 1
2 LITERATURE SURVEY 4
3 PROJECT ANALYSIS 11
3.1 Existing System 11
3.1.1 Drawback 11
3.2 Problem Statement 13
3.3 Proposed System 13
3.3.1 Advantages 16
4 SYSTEM SPECIFICATION 18
4. 1 Software specification 18
4.1.1 Python 18
4.1.2 User Interface 19
4.1.2.1 Streamlit 19
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4.1.3 Algorithm 20
4.1.3.1 Random Forest 20
4.1.3.2 Scikit-learn 20
4.1.4 Libraries 21
4.1.4.1 Numpy 21
4.1.4.2 Pandas 21
4.1.5 Dataset 22
4.1.5.1 Kaggle 22
5 PROJECT DESCRIPTION 23
5.1 System Design 23
5.2 Module Description 28
5.2.1 Data Collection And Preprocessing 28
5.2.2 Feature Selection And Engineering 28
5.2.3 Machine Learning Model 28
Development
5.2.4 Prediction And Decision Support 29
5.2.5 Transparency And Ethical 29
Considerations
5.2.6 User Interface And Accessibility 29
5.2.7 Continuous Learning And 30
Adaptation
6 IMPLEMENTATIONS 31
5.1 System Model 31
4.1 PYTHON 19
4.2 STREAMLIT 20
4.4 NUMPY 21
4.5 PANDAS 22
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LIST OF ABBREVATION
ABBREVATION EXPANTION
viii
CHAPTER 1
INTRODUCTION
The real estate market is one of the most dynamic and complex sectors globally, with
property prices influenced by a myriad of factors such as location, market demand,
amenities, and neighborhood quality. Traditional methods of property valuation often rely
on subjective assessments or limited data, which can lead to inconsistencies, inaccuracies,
and even manipulation in pricing. This creates challenges for buyers, sellers, and real estate
agents, resulting in a lack of trust and transparency in transactions.
To address these challenges, this project introduces a Machine Learning-Based House
Price Prediction System that leverages the power of advanced data analytics to offer precise
and unbiased property valuations. By incorporating critical features such as location, BHK
configuration, neighborhood area, and land size, the system provides predictions that are not
only accurate but also reflective of real market conditions. The inclusion of additional
factors such as proximity to services, neighborhood quality, and current market trends
further enhances the model’s reliability.
One of the standout features of this project is its focus on real-time data integration,
which ensures that the model remains adaptable to the fast-changing dynamics of the real
estate market. Unlike static valuation methods, this approach captures fluctuations in
property prices due to seasonal demand shifts, economic conditions, and emerging market
trends, providing stakeholders with the most relevant and up-to-date information.
This system is not merely a tool for prediction—it is a step toward creating a more
transparent and equitable real estate ecosystem. By offering data-driven insights, the model
eliminates biases, reduces the risk of price manipulation, and promotes fair transactions. For
buyers, it serves as a trustworthy guide to assess a property's true value. For sellers, it
provides a credible platform to price their properties competitively.
1
Figure 1.1 Estimation of House Price
The goal of this project is to transform real estate transactions by fostering trust,
reducing uncertainties, and ensuring that decisions are based on accurate and comprehensive
data. As technology continues to reshape industries, this innovative solution is a prime
example of how machine learning can revolutionize traditional practices, making them more
efficient, transparent, and fair.
Another advantage of this approach is its ability to handle large datasets
encompassing diverse variables. For instance, the system can process information on
historical sales data, population growth in a region, infrastructure development, and even
environmental factors like air quality or natural disaster risks. By analyzing this rich data
pool, the model can uncover patterns and relationships that are often overlooked, providing
a more nuanced and accurate prediction of property values.
Transparency and fairness are at the heart of this initiative. In many real estate
transactions, buyers and sellers rely heavily on third-party valuations, which may not always
be impartial. By utilizing an unbiased, data-driven approach, this system eliminates the
influence of subjective opinions or market manipulation. Buyers gain confidence in making
2
investments based on reliable insights, while sellers can trust the system to reflect the true
value of their property without external biases.
Moreover, the integration of such a system can foster trust and collaboration among
all stakeholders in the real estate ecosystem. Real estate agencies, brokers, and developers
can use this platform to provide consistent and transparent pricing strategies, enhancing their
credibility in the market. Governments and policymakers can also leverage these insights to
monitor market trends, identify housing affordability issues, and implement targeted
interventions to support sustainable development.
3
CHAPTER 2
LITERATURE SURVEY
4
Algorithmic Bias: While Random Forest was deemed the most accurate, the reliance
on hyperparameter tuning for all algorithms could introduce biases or mask other
potentially impactful variables.
[2] Impact of Geographic and Socioeconomic Factors on Property Valuation
Chau and Wong (2019) explored the influence of geographic and socioeconomic
variables, including proximity to public services such as schools, hospitals, and
transportation hubs, on real estate pricing. Their study combined geospatial analysis with
machine learning models, such as regression trees and clustering algorithms, to capture the
nuanced impact of these variables. The findings indicated that properties located near
essenti-al amenities and low-crime neighborhoods were valued significantly higher. The
authors emphasized the importance of integrating socioeconomic factors into predictive
models to provide a holistic understanding of property valuation, improving the accuracy
and relevance of price predictions.
ADVANTAGES:
Holistic Understanding of Property Valuation: The study emphasizes integrating
socioeconomic factors, such as proximity to public services and neighborhood safety,
which provides a comprehensive approach to property pricing, leading to more accurate
and relevant price predictions.
Use of Advanced Analytical Methods: By combining geospatial analysis with
machine learning models like regression trees and clustering algorithms, the study
effectively captures complex relationships between variables, enhancing the predictive
power of the model.
DISADVANTAGES:
Potential Data Limitations: The study's reliance on geographic and socioeconomic
data may face limitations in data availability or accuracy, particularly for regions where
such information is not easily accessible or reliable, affecting the robustness of the
predictions.
Model Complexity and Interpretability: The use of complex machine learning
5
models such as regression trees and clustering algorithms may make the results less
interpretable for stakeholders without technical expertise, limiting the practical
application of the findings for non-experts.
7
Limited Exploration of Hyperparameter Tuning: While the paper highlights
XGBoost’s performance, it doesn’t delve deeply into the impact of hyperparameter
tuning, which can significantly affect model outcomes in ensemble methods.
[6] Data Preprocessing and Feature Engineering in Real Estate Price Prediction
Garcia et al. (2021) explored the importance of preprocessing real estate data to
enhance the performance of machine learning models. Key preprocessing techniques
discussed included handling missing values, removing outliers, and scaling numerical
features to ensure uniformity. The study also delved into feature engineering, creating new
variables such as "price per square foot" or "distance to city center," which added significant
predictive power to the models. The researchers compared various preprocessing methods
and found that rigorous data cleaning and transformation processes contributed to better
model stability and accuracy, particularly for ensemble and deep learning-based methods
like neural networks.
ADVANTAGES:
Enhanced Model Performance: The study emphasizes the importance of
preprocessing techniques like handling missing values, removing outliers, and scaling
features, which help improve the accuracy and stability of machine learning models,
particularly ensemble and deep learning methods.
Effective Feature Engineering: By introducing new features such as "price per square
foot" and "distance to city center," the study demonstrates how feature engineering can
significantly boost the predictive power of the models.
9
DISADVANTAGES:
Data Dependency: The effectiveness of the preprocessing techniques and feature
engineering heavily relies on the quality and characteristics of the real estate data,
which may not be applicable to all datasets or industries.
Time-Consuming Process: Implementing rigorous data cleaning and transformation
steps can be resource-intensive and time-consuming, especially for large datasets,
which may increase the overall project timeline.
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CHAPTER 3
PROJECT ANALYSIS
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Many existing systems rely on basic factors such as location, square footage, and
recent sales data. However, they often fail to account for other important features such
as property condition, neighborhood trends, and macroeconomic factors, which can
significantly influence house prices. As a result, the price predictions may be incomplete
or outdated.
Inaccuracy in Dynamic Markets
Traditional systems often struggle to adapt quickly to changes in the real estate
market, especially in volatile conditions. They may use historical data that doesn’t reflect
recent shifts in market trends, leading to overvalued or undervalued property estimates.
Lack of Transparency
Many existing automated valuation models (AVMs) do not provide clear explanations
of how their estimates are derived. This lack of transparency can lead to a lack of trust
from users, as they may not understand the logic behind the price prediction or feel
confident in its accuracy.
Vulnerability to Manipulation
Real estate agents and sellers may manipulate or adjust their pricing strategies based
on their own goals or interests, which can lead to inflated or misleading house price
estimates that do not reflect the true market value.
Inability to Handle Complex Variables
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3.2 PROBLEM STATEMENT
Real estate markets often suffer from a lack of accurate and accessible methods for
predicting house prices, which can result in overvaluation or undervaluation of properties.
These inaccuracies can negatively impact both buyers and sellers, leading to poor
investment decisions, financial losses, and an overall lack of confidence in the market.
House prices are influenced by a complex combination of factors, including location,
property size, neighborhood features, local amenities, and market trends. To accurately
predict house prices, it is essential to consider these variables collectively, which requires a
more advanced, data-driven approach rather than relying on traditional methods.
Traditional methods of house price estimation often depend on intuition or limited
historical data, which can fail to capture the nuances of a dynamic market. In contrast, a
data-driven prediction model can provide a much more accurate and reliable estimate by
analyzing vast amounts of historical data alongside current market trends. By integrating
machine learning algorithms and statistical techniques, such a model can account for the full
range of factors that influence house prices. This enables real estate stakeholders, including
buyers, sellers, and investors, to make more informed decisions based on empirical evidence
and projections for future market conditions. The ability to forecast price trends with higher
accuracy can also reduce the risk of market volatility and help maintain stability in the real
estate industry. This modern, analytical approach offers a clear advantage over traditional
methods, driving both transparency and efficiency in property transactions.
The proposed system aims to revolutionize the real estate market by offering an
automated and unbiased approach to estimating house prices. Traditional methods of pricing
properties often rely on subjective assessments, which can lead to inaccuracies and potential
disputes. This system addresses those challenges by analyzing key features that significantly
influence property values, such as location, the number of bedrooms, hall size, land area,
13
and other relevant factors like proximity to amenities, schools, and transport links. By
incorporating these attributes, the system ensures precise and data-backed price predictions,
serving as a reliable tool for all stakeholders in the housing market.
14
Figure 3.2 House Price Prediction
An essential feature of this system is its emphasis on transparency and fairness, which
are often lacking in traditional real estate dealings. Sellers or agents can sometimes
manipulate property prices for personal gain, creating an imbalance in the market. This
automated system removes such biases by basing its estimates solely on data, ensuring
objectivity. Buyers can confidently rely on these estimates to make informed decisions,
fostering trust and promoting ethical practices in real estate transactions. This system not
only empowers individuals but also contributes to a more balanced and equitable housing
market.
To enhance usability, the system can be designed with a user-friendly interface,
allowing even non-technical users to access and interpret its insights easily. Features like
interactive dashboards, customizable inputs, and visual data representations can make the
system accessible to a wide audience, including first-time buyers, seasoned investors, and
real estate professionals. Additionally, by providing real-time insights, the system can
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significantly reduce the time spent on negotiations and decision-making processes, making
transactions smoother and more efficient.
In conclusion, the proposed system has the potential to transform the real estate
market by promoting informed decision-making, fostering fairness, and ensuring
transparency. Its innovative use of data and machine learning algorithms can address
longstanding challenges in property pricing, making it a valuable tool for buyers, sellers,
and industry professionals alike. By eliminating biases and streamlining processes, this
system paves the way for a more ethical and efficient housing market.
3.3.1 ADVANTAGES
The data-driven house price estimation model offers several key advantages over
traditional methods of property valuation. By leveraging historical data, market trends,
and various property features like location, size, and neighborhood, this model provides
more accurate and objective predictions of house prices.
Unlike traditional approaches that often rely on intuition or limited data, the model
accounts for a comprehensive set of variables, reducing the risk of overvaluation or
undervaluation. This helps both buyers and sellers make informed decisions,
minimizing financial risks and ensuring fair pricing in the market.
Additionally, the model's ability to continuously learn from new data means that it can
adapt to changing market conditions, offering real-time insights that traditional
methods cannot provide. Ultimately, this data-driven approach enhances transparency,
fairness, and trust in real estate transactions, benefiting all stakeholders and
contributing to a more stable and efficient housing market.
The transparency offered by a data-driven approach further enhances its appeal. By
providing a clear breakdown of the factors influencing the price estimation, stakeholders
can better understand the rationale behind the predictions. This builds trust among buyers,
sellers, and real estate agents, fostering confidence in the property market.
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In addition to accuracy and transparency, the model contributes to a more efficient
housing market. Automated valuation systems reduce the time and effort required for
property appraisals, streamlining transactions and enabling faster decision-making. For
real estate agencies and financial institutions, these models can also improve operational
efficiency by providing instant property valuations, aiding in mortgage approvals, or
guiding investment decisions.
Furthermore, the integration of advanced machine learning techniques allows these
models to uncover emerging trends in the housing market. For example, identifying
upcoming hotspots for property development or neighborhoods with declining values
helps investors and policymakers anticipate market shifts and make proactive decisions.
Ultimately, the data-driven approach transforms the real estate industry by enhancing
transparency, fairness, and trust in property transactions. It benefits all stakeholders,
including buyers, sellers, real estate agents, and financial institutions, while contributing
to a more stable, equitable, and efficient housing market. As technology continues to
advance, these models will play an increasingly central role in shaping the future of real
estate valuation.
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CHAPTER 4
SYSTEM
SPECIFICATION
4.1.1 PYTHON
19
Figure 4.2 Streamlit
4.1.3 ALGORITHM
4.1.3.1 RANDOM FOREST
Random Forest is a versatile and powerful machine learning algorithm used for both
classification and regression tasks. It operates by constructing multiple decision trees during
training and merging their outputs for improved accuracy and robustness. Each tree is trained
on a random subset of the data, with features selected randomly at each split, which introduces
diversity and reduces overfitting. The final prediction is made by averaging the outputs of all
trees in regression tasks or by taking a majority vote in classification tasks. This ensemble
approach enhances the model's performance and stability compared to a single decision tree.
Random Forest is also effective in handling missing data and is less sensitive to noise, making
it a popular choice for complex datasets.
4.1.3.2 SCIKIT-LEARN
Scikit-learn is a popular Python library for machine learning and data analysis, built
on top of NumPy, SciPy, and Matplotlib. It provides simple and efficient tools for data
preprocessing, model training, evaluation, and deployment. Scikit-learn supports a wide
range of supervised and unsupervised learning algorithms, including classification,
regression, clustering, dimensionality reduction, and ensemble methods. It offers intuitive
APIs for implementing machine learning pipelines, making it accessible for both beginners
and experts. The library is highly optimized and widely used in academia and industry for
prototyping and production. Its comprehensive documentation and active community make
it an essential tool for data science projects.
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Figure 4.3 Scikit Learn
4.1.3 LIBRARIES
4.1.4.1 NUMPY
NumPy, which stands for Numerical Python, NumPy is a Python library used for
working with arrays. It also has functions for working in domain of linear algebra, fourier
transform, and matrices. NumPy was created in 2005 by Travis Oliphant. It is an open source
project and you can use it freely. NumPy stands for Numerical Python. NumPy aims to
provide an array object that is up to 50x faster than traditional Python lists. NumPy is very
useful for performing logical and mathematical calculations on arrays and matrices. This
tool performs these operations much faster and more efficiently than Python lists. Numpy
uses less memory and storage space, which is the main advantage. It is a library consisting
of multidimensional array objects and a collection of routines for processing of array .
4.1.4.2 PANDAS
PANDAS is short for Pediatric Autoimmune Neuropsychiatric Disorders Associated
with Streptococcal Infections. Pandas is mainly used for data analysis and associated
manipulation of tabular data in Data Frames. Pandas allows importing data from variousfile
formats such as comma-separated values, JSON, Parquet, SQL database tables or queries,
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and Microsoft Excel. Pandas allows various data manipulation operations such as merging,
reshaping, selecting, as well as data cleaning, and data wrangling features. The development
of pandas introduced into Python many comparable features of working with Data Frames
that were established in the R programming language. The pandas library is built upon
another library, NumPy, which is oriented to efficiently working with arrays instead of the
features of working on Data Frames.
4.1.4 DATASET:
4.1.4.1 KAGGLE
Kaggle is a global online community and platform that focuses on data science,
machine learning, and artificial intelligence. It provides access to an extensive repository of
datasets across various domains, enabling users to explore, analyze, and use them for
projects or competitions. Kaggle is best known for its competitive environment, where data
scientists and machine learning practitioners participate in challenges to solve real-world
problems while competing for prizes and recognition. It also offers a cloud-based workspace
with tools like Jupyter Notebooks, Python, and R, allowing users to perform data analysis
and modeling directly on the platform. Additionally, Kaggle hosts tutorials, courses, and
discussion forums, making it a great place to learn and collaborate. It’s widely used for
developing skills, building portfolios, and networking within the data science community.
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CHAPTER 5
PROJECT DESCRIPTION
Start
Data collection
Data preprocess
Random forest
Prediction
Stop
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FLOWCHART DESCRIPTION:
Start
The starting point of your project workflow. This step marks the initiation of the
process to build a machine learning model for solving your problem (e.g., house price
prediction, classification, etc.)
Data Collection
This step involves gathering all the necessary data for the project.The data may come
from various sources like publicly available datasets, APIs, or manual input.
Example: If this is a house price prediction project, the data could include house
attributes like location, area, number of bedrooms, and their respective prices.
Data Preprocessing
Data preprocessing is crucial to clean and prepare the raw data for analysis and model
training.
Data splitting: Dividing the data into training and testing sets.
The goal is to ensure the dataset is consistent, accurate, and usable for the Random
Forest algorithm.
This is the model training phase, where the Random Forest algorithm is used.Random
Forest is an ensemble machine learning algorithm that builds multiple decision trees and
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combines their outputs to improve accuracy and reduce overfitting.The algorithm uses
the preprocessed data to learn patterns and relationships between the input features and
the target variable (e.g., house price).
Prediction
Once the model is trained, it can make predictions on new data inputs.
Example: Given new features like the number of rooms, land area, and location, the model
predicts the expected house price.This is the final goal of the machine learning model.
Stop
The workflow ends after predictions are made.The output (predictions) can be evaluated,
visualized, or used in real-world applications.
Example: A user interface could display predicted house prices based on user input.
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FIGURE 5.1.2 : FLOW CHART
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FLOWCHART DESCRIPTION:
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5.2 MODULE DESCRIPTION
5.2.1 DATA COLLECTION AND PREPROCESSING
This module focuses on gathering and organizing the data required to train the
prediction model. Key data sources include historical housing prices, location details,
property features (e.g., number of bedrooms, hall size, and land area), and proximity to
amenities like schools, transport links, and recreational facilities. Data preprocessing
techniques such as handling missing values, outlier detection, normalization, and encoding
categorical data are applied to ensure the dataset is clean and ready for analysis. This step
is essential for creating a reliable foundation for subsequent predictive modeling, ensuring
accuracy and consistency across the entire system.
The system leverages this module to identify and prioritize the most influential
factors affecting house prices. By analyzing correlations and using techniques like
principal component analysis (PCA) and mutual information, the module highlights
features like location, neighborhood amenities, and market trends. Feature engineering
methods create new meaningful variables, such as walkability scores or the property’s
proximity to key amenities, enhancing the predictive power of the model. This module
ensures that the input data aligns closely with real-world dynamics, improving the
accuracy of price estimates.
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CHAPTER 6
IMPLEMENTATION
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6.1.1 SYSTEM MODEL
The system model of the proposed house price prediction system is meticulously
designed to ensure precision, scalability, and accessibility for users. At its core, the model
operates in three interconnected stages: data preprocessing, model training, and prediction
generation. This architecture ensures that each step contributes to a seamless and accurate
prediction process, addressing the multifaceted factors influencing house prices. By
systematically analyzing key features and integrating them into a machine learning
framework, the system model offers an innovative and reliable solution for the real estate
industry.
The foundation of the system model lies in the preprocessing of raw data. Datasets
sourced from Kaggle often include extensive information about properties, such as size,
number of rooms, location, and market trends. This raw data is cleaned, standardized, and
transformed into a format suitable for analysis using Python libraries like Pandas and
NumPy. The preprocessing step includes handling missing values, removing outliers, and
encoding categorical variables such as neighborhood types or proximity to landmarks. By
preparing the data meticulously, the system ensures that the machine learning model can
focus on relevant patterns and correlations, resulting in more accurate predictions.
The implementation of the proposed system for house price prediction integrates
advanced technologies to address the challenges faced in the real estate market, offering
significant utility to stakeholders such as buyers, sellers, and investors. By utilizing Python
as the programming language, the system ensures flexibility and efficiency in handling
complex algorithms and large datasets. The simplicity and versatility of Python make it ideal
for developing a robust model that can analyze multiple features influencing house prices,
such as location, property size, and proximity to amenities. This implementation
demonstrates how modern tools can empower users with actionable insights, creating a more
equitable and efficient housing market.
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The user interface is built using Streamlit, a powerful framework that simplifies the
development of interactive web applications. This ensures the system is accessible even to
non-technical users. The interface allows stakeholders to input property details easily,
explore predictions, and visualize data in an intuitive manner. By presenting insights
through interactive dashboards and graphs, the system demystifies complex data analysis,
enabling users to interpret results effectively. This accessibility not only broadens the
potential audience but also democratizes access to reliable information, making it easier for
first-time buyers and small-scale investors to make informed decisions.
At the core of the system lies the Random Forest algorithm, implemented using the
Scikit-learn library. This algorithm excels in predictive accuracy and adaptability, making
it well-suited for a dynamic market like real estate. Random Forest works by creating a
multitude of decision trees and combining their outputs to produce precise predictions. Its
ability to identify complex patterns and relationships among features ensures that the model
captures even subtle influences on property prices, such as seasonal trends or the impact of
nearby infrastructure projects. This data-driven approach eliminates guesswork, reducing
the risks of overvaluation or undervaluation and enhancing trust in market transactions.
The implementation also leverages libraries such as NumPy and Pandas to handle data
preprocessing and analysis efficiently. These libraries allow for seamless manipulation of
large datasets, ensuring the system can handle diverse and extensive historical data sourced
from platforms like Kaggle. Historical data forms the backbone of the model, as it helps
identify trends and correlations that influence pricing. By analyzing past transactions and
market conditions, the system provides predictions rooted in evidence, enabling users to
anticipate future market behavior with confidence.
This implementation brings tangible benefits to buyers, sellers, and investors by
offering transparent and unbiased property evaluations. Buyers gain a reliable tool to assess
whether a property is priced fairly, helping them avoid overpaying. Sellers, on the other
hand, can use the system to set competitive prices that attract genuine buyers, thereby
reducing the time a property spends on the market. For investors, the system offers an
33
opportunity to evaluate properties based on projected returns, minimizing the risk of
financial loss. This comprehensive approach fosters trust and stability in the real estate
market, addressing a longstanding gap in the industry.
Moreover, the system’s ability to adapt to real-time market conditions ensures its
relevance and accuracy over time. As the housing market evolves due to factors like
economic fluctuations or policy changes, the model can incorporate new data to update its
predictions. This adaptability makes it a valuable tool for long-term use, ensuring users stay
ahead in a competitive market. By offering timely insights, the system also streamlines
decision-making processes, reducing the time and effort required to evaluate properties or
negotiate deals.
The implementation of this system redefines how house prices are estimated by shifting
from subjective assessments to data-backed predictions. Its integration of advanced machine
learning algorithms, efficient data handling libraries, and a user-friendly interface
exemplifies how technology can address complex real-world problems. By promoting
fairness, transparency, and efficiency, the system benefits all participants in the real estate
market, contributing to a more equitable and stable housing industry.
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CHAPTER 7
CONCLUSION AND FUTURE ENHANCEMENTS
CONCLUSION:
The proposed House Price Prediction System leverages modern machine learning
techniques and data analytics to provide an unbiased, accurate, and transparent method of
predicting property prices. This system addresses several longstanding challenges in the real
estate market, particularly the subjectivity and potential biases that often accompany
traditional house valuation methods. By considering multiple factors such as location,
property size, neighbourhood amenities, and market trends, the system offers a
comprehensive and data-driven approach to predicting house prices with high accuracy.
One of the most important features of the system is its transparency and fairness. Unlike
traditional pricing methods that are susceptible to manipulation or bias, the system relies
entirely on data, ensuring that the price estimates are objective and grounded in factual
information. This approach eliminates potential conflicts and provides a level of confidence
for both buyers and sellers. The result is a more equitable real estate market, where prices
reflect the true value of properties based on measurable, verifiable factors rather than
subjective opinions.
In conclusion, the House Price Prediction System provides a much-needed solution to
the challenges faced by the real estate market today. By combining advanced data analytics,
machine learning, and transparent, objective pricing, this system significantly improves the
accuracy and fairness of property valuations. It not only enhances the decision-making
process for buyers and sellers but also contributes to the overall stability and trustworthiness
of the real estate market. The system’s ability to adapt to market changes and its focus on
fairness makes it an indispensable tool in modern real estate transactions, ensuring a more
efficient, transparent, and reliable market for all stakeholders involved.
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FUTURE ENHANCEMENTS:
The future enhancement of the House Price Prediction System could involve several
improvements to further increase its accuracy, functionality, and accessibility. One potential
enhancement is the integration of additional data sources, such as social media trends, real-
time economic indicators, and geospatial data, which could provide deeper insights into the
property market, especially in fast-changing or emerging neighborhoods. Incorporating
natural language processing (NLP) techniques could allow the system to analyze textual
data, such as property descriptions or user reviews, to extract sentiment and other features
that influence pricing. Additionally, the system could be expanded to provide predictive
analytics on future property values by analyzing long-term market trends, making it a
powerful tool for investors looking to anticipate price changes. Another enhancement could
be the inclusion of personalized recommendations for buyers and sellers, suggesting
properties or pricing strategies based on individual preferences, budget, and goals.
Integrating the system with augmented reality (AR) tools could allow users to visualize
properties or view potential renovation impacts, further enhancing the decision-making
process. Lastly, improving the model’s interpretability with features like explainable AI
(XAI) would make the system even more user-friendly, providing transparent reasons
behind pricing estimates, which could increase trust and adoption. These enhancements
would ensure that the system remains at the forefront of real estate technology, offering
valuable insights and tools for all stakeholders in the housing market.
36
APPENDIX I
SOURCECODE
import streamlit as st
import pandas as pd
import pickle
import pandas as pd
def user_report():
area = st.sidebar.text_input('Area SqFt', 3500)
bedrooms = st.sidebar.slider('Bedrooms', 1, 5, 1)
bathrooms = st.sidebar.slider('Bathrooms', 1, 5, 1)
stories = st.sidebar.slider('Floors', 1, 5, 1) # New input for Floors
37
parking = st.sidebar.slider('Parking', 0, 3, 1) # New input for parking
38
furnishingstatus_unfurnished = 1 if furnishing_index == 'Unfurnished' else 0
user_report_data = {
'area': area,
'bedrooms': bedrooms,
'bathrooms': bathrooms,
'stories': stories,
'parking': parking,
'location_suburban': location_suburban,
'location_urban': location_urban,
'mainroad_yes': mainroad_yes,
'guestroom_yes': guestroom_yes,
'basement_yes': basement_yes,
'hotwaterheating_yes': hotwaterheating_yes,
'airconditioning_yes': airconditioning_yes,
'prefarea_yes': prefarea_yes,
'furnishingstatus_semi-furnished': furnishingstatus_semi_furnished,
'furnishingstatus_unfurnished': furnishingstatus_unfurnished,
'district_erode': district_erode,
'district_tiruppur': district_tiruppur
}
39
report_data = pd.DataFrame(user_report_data, index=[0])
return report_data
user_data = user_report()
st.write('''
## House Price Prediction
if st.button('Predict'):
# Ensure user_data is a DataFrame with the correct structure
house_price = model.predict(user_data)
formatted_price = '${:,.2f}'.format(house_price[0])
formatted_price = formatted_price.replace('$', '₹').replace(',', '')
st.write("## :green[*Your Predicted House Price is :*]", formatted_price)
40
APPENDIX II
SCREENSHOTS
OUTPUT SCREENSHOT
41
Figure A.2.2 Predicting the House Price
42
SOURCE CODE SCREENSHOTS
43
Figure A.2.4 Source code screenshot
44
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