Real Estate Price Index: An Hedonic Approach

The objective of the document is to estimate a price index of departments for Metropolitan Lima using the hedonic price methodology. For this purpose, three variants of the methodology are used (time binary variables method, characteristics method and the imputation method). The indices calculated by these three methods present similar results. It also shows that there has not been a great variation in the characteristics of the departments or the valuations of these characteristics. The characteristics with the highest valuation of the buyers are the number of garages and the number of bathrooms. Finally, similarity is found in the indices calculated based on hedonic regressions and the median index calculated and published by the BCRP.