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House Price Prediction

Experiment Findings · February 2021

DOI: 10.13140/RG.2.2.27657.98408

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HOUSE PRICE PREDICTION USING REGRESSION
TECHNIQUES

A MINI PROJECT
REPORT

Submitted by

Udit Deo
17bcs057

Uday Deo
17bcs056

B. TECH.
IN

Computer Science and Engineering

SHRI MATA VAISHNO DEVI UNIVERSITY

November 29, 2019

 SHRI MATA VAISHNO DEVI UNIVERSITY

CERTIFICATE

Certified that this project report HOUSE PRICE PREDICTION USING

REGRESSION TECHNIQUES” is the work of Udit Deo and Uday Deo who carried out the mini

project work under my supervision.

Pooja Sharma
Assistant Professor
CSE, SMVDU

Submitted to the Viva voce Examination held on _____________________

INTERNAL EXAMINER EXTERNAL EXAMINER

 TABLE OF CONTENTS

Chapter Number Contents Page Number

Abstract iii
List of Table iv
List of Figures v
List of symbols and Abbreviations vi
1 INTRODUCTION vii
1.1 AIM and IMPORTANCE viii
1.1.1 Aim ix
1.1.2 Need and Motivation x

2. DATASET xi
2.1 Steps in Preparing Data for Model xii

2.1.1 Data Exploration xiii

2.1.2 Data Visualization xiv
2.1.3 Data Selection xv-xvi
2.1.4 Data Transformation xvii-xx

3 LANGUAGE AND MODELS USED xxi

3.1 Python xxii
3.1.1 Jupyter Notebook xxii
3.1.2 NumPy xxii
3.1.3 Pandas xxii
3.1.4 Seaborn xxii
3.1.5 Matplotlib xxii
 3.2 Models Used xxiii
3.2.1 Multiple Linear Regression xxiv
3.2.2 Random Forest Regressor xxv
3.2.3 XG Boost Regressor xxvi

4. RESULTS AND DISCUSSIONS xxvii

4.1 BEST SUITED MODEL xxvii

4.2 DEPLOYMENT APP xxviii

5. CONCLUSION xxix
 Abstract

House price forecasting is an important topic of real estate. The literature attempts to

derive useful knowledge from historical data of property markets. Machine learning

techniques are applied to analyze historical property transactions in India to discover

useful models for house buyers and sellers. Revealed is the high discrepancy between

house prices in the most expensive and most affordable suburbs in the city of Mumbai.

Moreover, experiments demonstrate that the Multiple Linear Regression that is based on

mean squared error measurement is a competitive approach.

 INTRODUCTION

AIM and IMPORTANCE

Aim

These are the Parameters on which we will evaluate ourselves-

• Create an effective price prediction model

• Validate the model’s prediction accuracy

• Identify the important home price attributes which feed the model’s predictive power.
 Need and Motivation

Having lived in India for so many years if there is one thing that I had been taking for granted,

it’s that housing and rental prices continue to rise. Since the housing crisis of 2008, housing

prices have recovered remarkably well, especially in major housing markets. However, in the

4th quarter of 2016, I was surprised to read that Bombay housing prices had fallen the most in

the last 4 years. In fact, median resale prices for condos and coops fell 6.3%, marking the first

time there was a decline since Q1 of 2017. The decline has been partly attributed to political

uncertainty domestically and abroad and the 2014 election. So, to maintain the transparency

among customers and also the comparison can be made easy through this model. If customer

finds the price of house at some given website higher than the price predicted by the model, so

he can reject that house.

 DATASET

Here we have web scrapped the Data from 99acres.com website which is one of the leading
real estate websites operating in INDIA.

Our Data contains Bombay Houses only.

Dataset looks as follows-

 Data Exploration

Data exploration is the first step in data analysis and typically involves summarizing the main

characteristics of a data set, including its size, accuracy, initial patterns in the data and other

attributes. It is commonly conducted by data analysts using visual analytics tools, but it can

also be done in more advanced statistical software, Python. Before it can conduct analysis on

data collected by multiple data sources and stored in data warehouses, an organization must

know how many cases are in a data set, what variables are included, how many missing

values there are and what general hypotheses the data is likely to support. An initial

exploration of the data set can help answer these questions by familiarizing analysts with the

data with which they are working.

We divided the data 9:1 for Training and Testing purpose respectively.
 Data Visualization

Data visualization is the graphical representation of information and data. By

using visual elements like charts, graphs, and maps, data visualization tools provide an

accessible way to see and understand trends, outliers, and patterns in data. In the

world of Big Data, data visualization tools and technologies are essential to analyse

massive amounts of information and make data-driven decisions.

 Data Selection

Data selection is defined as the process of determining the appropriate data

type and source, as well as suitable instruments to collect data. Data selection

precedes the actual practice of data collection. This definition distinguishes data

selection from selective data reporting (selectively excluding data that is not

supportive of a research hypothesis) and interactive/active data selection (using

collected data for monitoring activities/events, or conducting secondary data

analyses). The process of selecting suitable data for a research project can impact data

integrity.

The primary objective of data selection is the determination of appropriate data type,

source, and instrument(s) that allow investigators to adequately answer research

questions. This determination is often discipline-specific and is primarily driven by

the nature of the investigation, existing literature, and accessibility to necessary data

sources.
Correlation Heatmap
 Data Transformation

The log transformation can be used to make highly skewed distributions less skewed. This

can be valuable both for making patterns in the data more interpretable and for helping to

meet the assumptions of inferential statistics.

It is hard to discern a pattern in the upper panel whereas the strong relationship is shown

clearly in the lower panel. The comparison of the means of log-transformed data is actually a

comparison of geometric means. This occurs because, as shown below, the anti-log of

the arithmetic mean of log-transformed values is the geometric mean.

Skewed Price

Normal Price
Skewed Area

Normal Area
 Skewed Price/Sq.

Normal Price/Sq.

LANGUAGE AND MODELS USED

 Python

Python is widely used in scientific and numeric computing:

 SciPy is a collection of packages for mathematics, science, and engineering.

 Pandas is a data analysis and modelling library.
 IPython is a powerful interactive shell that features easy editing and recording of a work
session, and supports visualizations and parallel computing.
 The Software Carpentry Course teaches basic skills for scientific computing, running
bootcamps and providing open-access teaching materials.

Libraries Used for this Project include –

 Pandas
 NumPy
 Matplotlib
 Seaborn
 Scikit Learn
 XG Boost
 MODELS USED

Regression Model

• Linear Regression is a machine learning algorithm based on supervised learning.

• It performs a regression task. Regression models a target prediction value based on

independent variables.

• It is mostly used for finding out the relationship between variables and forecasting.

Real Vs Predicted
 Random Forest Regression Model

• A Random Forest is an ensemble technique capable of performing both regression and

classification tasks with the use of multiple decision trees and a technique
called Bootstrap Aggregation, commonly known as bagging.

• Bagging, in the Random Forest method, involves training each decision tree on a
different data sample where sampling is done with replacement.

• The basic idea behind this is to combine multiple decision trees in determining the
final output rather than relying on individual decision trees.

Real Vs Predicted
 XG Boost Regressor Model

• XG Boost stands for eXtreme Gradient Boosting.

• The XG Boost library implements the gradient boosting decision tree algorithm.

• Boosting is an ensemble technique where new models are added to correct the errors
made by existing models.

• Models are added sequentially until no further improvements can be made.

Real Vs Predicted
 RESULTS AND DISCUSSIONS

Best Suited Model

So, our study showed that……..

Linear Regression displayed the best performance for this Dataset and can be used for
deploying purposes.

Random Forest Regressor and XGBoost Regressor are far behind, so can’t be
recommended for further deployment purposes.

RMSE Bar Graph

 Deployment App

The Model is deployed through Python Web App Flask in collaboration with HTML and

CSS.
 Conclusion

So, our Aim is achieved as we have successfully ticked all our parameters as mentioned in

our Aim Column. It is seen that circle rate is the most effective attribute in predicting the

house price and that the Linear Regression is the most effective model for our Dataset with

RMSE score of 0.5025658262899986.

APPENDIX – 4 (A typical Sample of List of Tables)

LIST OF TABLES

TABLE TITLE PAGE

NUMBER
4.1 Raw Bombay House Dataset vi

4.2 Transformed Dataset House ix

APPENDIX – 5 (A typical Sample of List of Figures)

LIST OF FIGURES

FIGURE TITLE PAGE

NUMBER

4.1 Bar Plots of various Parameters viii

4.2 Correlation Heatmap x

4.3 Skewed Plot xi-xiv

4.4 Real Vs Predicted Plots xvii-xix

4.5 Comparison Bar Plot xxiii

4.6 Website View xxv

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APPENDIX – 6: (A typical Sample of List of Symbols and Abbreviations)

ABBREVIATIONS

SqM Square meter

SqFt Square Feet
LR Linear Regression
XGB Xtreme Gradient Boost
rmse Root Mean Square Error
Log Logarithmic