Experiments : Demystifying Mumbai Housing

I have been following the Mumbai housing space since the recent move and have had a hard time understanding the different variables at play and how they influence the housing price here.

I tried to run a small experiment using 300+ houses-data points collected over a couple of weeks posted randomly. While not completely comprehensive, this gives a few pointers to help answer one question, is the rental price fair ?

Location vs Price Adjustments

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Cheapest to Most Expensive(Top to Bottom)

The market should be determining the optimal price and the variables considered are LOCATION and other basic amenities/aspects. It’s a very basic modelling approach but can be improved based on feedback.

Understanding the numbers and how to come up with a price :

  • The average single room flat costs Rs 18587 (Base Value). E.g the average house in Bandra will be Rs 16675 (Location Premium) + Rs 18587 (Base Value) = ~ Rs 35000
  • The cost for sharing a room will be half of the estimated full room price.
  • This average rental room is a boys only non-gated community housing with no furnishing and brokerage.
  • Now adjust this price based on other amenities variable.
  • Being a basic approach some variables behave counter-intuitively but choose simplicity for overall intuitive understanding.
  • Caveat : Generated from user data and thereby some might be mis-leading but at an overall level is useful.
  • The heat range conveys the breadth of price adjustments.

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Let me know what you guys think and if there is something basic being missed or any other comments on this !!

Machine Learning Basics