A Study on AI-Based Real Estate Rate of Return Decision Models of 5 Sectors for 5 Global Cities: Seoul, New York, London, Paris and Tokyo

Purpose: This study aims to provide useful information to real estate investors by developing a profit determination model using artificial intelligence. The model analyzes the real estate markets of six selected cities from multiple perspectives, incorporating characteristics of the real estate market, economic indicators, and policies to determine potential profits.Methods: Data on real estate markets, economic indicators, and policies for five cities were collected and cleaned. The data was then normalized and split into training and testing sets. An AI model was developed using machine learning algorithms and trained with this data. The model was applied to the six cities, and its accuracy was evaluated using metrics such as Mean Absolute Error (MAE), Root Mean Square Error (RMSE), and R-squared by comparing predicted profits to actual outcomes.Results: The profit determination model was successfully applied to the real estate markets of six cities, showing high accuracy and predictability in profit forecasts. The study provided valuable insights for real estate investors, demonstrating the model's utility for informed investment decisions.Conclusion: The study identified areas for future improvement, suggesting the integration of diverse data sources and advanced machine learning techniques to enhance predictive capabilities.