Enhancing Condominium Rental Classification and Income Prediction through Optimized Modeling Techniques

Author/s: Nashat Ali V Almasria, Tawfiq Tahtamoni, Hala Tawaha, Heba Hasan Alenezi

Date Published: 13/06/2026

Published in: Volume 31 - 2026 Issue 1 (pages 53 - 78)

DOI: https://doi.org/10.64361/14445921.2026.212327

Abstract

Real estate is one of the economic pillars of countries. Especially the condominiums that governments allocate for investment through rental income. In this study, we propose a novel model to categorize and estimate condominium rental income (CRI) using innovative techniques, including the Z-score transform (ZT), correlation coefficients (C-C), fuzzy C-mean clustering (FCM), and linear Regression (LR). The proposed novel model employs a set of specific features for this purpose and posits an important hypothesis regarding the role of condominium market values (CMV), together with their volume measures, represented by the condominium gross square (CGS) and total units (TUN), in linearly estimating the correlated CRI. Through this research, we demonstrate the validity of our hypothesis by systematically performing LR on the selected features: we first cluster CGS, TUN, CMV, and CRI into distinct classes using FCM, then apply LR separately to each resulting class.

Download Full Article

Download the Full Article PDF

Enhancing-Condominium-Rental-Classification-and-Income-Prediction-through-Optimized-Modeling-Techniques_p53.pdf Enhancing-Condominium-Rental-Classification-and-Income-Prediction-through-Optimized-Modeling-Techniques_p53.pdf (1020kB)

Keywords

Condominiums Rental Income (Cri) - Data.Gov Catalog Harvesting. - New York State (Dch- Ny), Z Score Transform (Zt), Correlation Coefficients (C-C), Fuzzy C-Mean Clustering (Fcm), and Linear Regression (Lr)

References

  • Aalbers, M. B., Taylor, Z. J., Klinge, T. J., & Fernandez, R. (2023). In real estate investment we trust: State
  • de-risking and the ownership of listed US and German residential real estate investment trusts.
  • Economic Geography, 99(3), 312-335.
  • Adam, T., & Goyal, V. K. (2008). The investment opportunity set and its proxy variables. Journal of
  • Financial Research, 31(1), 41-63.
  • Agarwal, D., Bansal, S., Jain, A., & Jain, S. (2021). A Study on Investment Behavior of Individual Investors
  • With Reference To Delhi-NCR. International Journal of All Research Education and Scientific
  • Methods (IJARESM), 9(9).
  • Agung, T. S., & Zuhri, B. S. S. (2023). Analysis of the Financial Feasibility of Potential Post-Pandemic
  • Businesses Using the Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period
  • (PP) Methods (Case Study: MSME Environmentally Friendly Bioplastic Products). Jurnal
  • Multidisiplin Madani, 3(7), 1432-1441.
  • Ahmed, S., & Salam, M. (2022). Rental housing policies and associated legal covers: Case of middle-income
  • formal housing in Karachi. Journal of Urban Management, 11(4), 488-499.
  • on Systems Engineering and Management. 2025,10(47s). Available: https://jisem
  • journal.com/index.php/journal/article/view/9221/4268.
  • Алмасрія, Н. А., Ершаїд, Д., Джалгум, Я. А., & Алмаджалі, А. (2025). The role of fintech in transforming
  • risk management and financial services: A systematic review and meta-analysis. Financial and
  • credit activity problems of theory and practice, 2(61), 409-429.
  • Anderson, R., Beracha, E., & Propper, S. (2022). The impact of real estate allocation on investors’ ability to
  • generate real income. Journal of Property Research, 39(2), 120-147.
  • Aldboush, H. H., Almasria, N. A., & Ferdous, M. (2023). Determinants of firm profitability: empirical
  • evidence from Jordan’s service sector. Business: Theory and Practice, 24(2), 438-446.
  • Aldboush, H., Almasria, N. A., Tawfiq, T. T., & Tawaha, H. (2024). The nexus between dividend payout
  • ratios, return on assets and leverage: A 15-year analysis of fortune 500 companies. International
  • Journal of Economics and Finance Studies, 16(4), 40–73.
  • Almasria, N. A., Alhatabat, Z., Ershaid, D., & Baarimah, A. O. (2026). Integrating Blockchain and Big Data
  • into External Audit Process: Perspective and Challenging. In Generative Artificial Intelligence
  • Driven Innovation: Strategies and Ethical Frameworks for Responsible AI (pp. 491-509). Cham:
  • Springer Nature Switzerland.
  • Almasria, N. A., Alhatabat, Z., Ershaid, D., Ibrahim, A., & Ahmed, S. (2024). The mediating impact of
  • organizational innovation on the relationship between fintech innovations and sustainability
  • performance. Sustainability, 16(22), 10044.
  • Алмасрія, Н. А., Ершаїд, Д., Джалгум, Я. А., & Алмаджалі, А. (2025). The role of fintech in transforming
  • risk management and financial services: A systematic review and meta-analysis. Financial and
  • credit activity problems of theory and practice, 2(61), 409-429.
  • Arjunan, K. (2022). A new method to estimate NPV and IRR from the capital amortization schedule and
  • the advantages of the new method. Australasian Accounting, Business and Finance Journal, 16(6),
  • 23-44.
  • Al-Okaily, M. (2024), Does AIS usage matter in SMEs performance? an empirical investigation under
  • digital transformation revolution. Information Discovery and Delivery, 52 (2): 125–137.
  • https://doi.org/10.1108/IDD-08-2022-0072
  • Alsaad, A., & Al-Okaily, M. (2022). Acceptance of protection technology in a time of fear: the case of Covid
  • 19 exposure detection apps. Information Technology & People, 35(3), 1116-1135.
  • AL-Khatib, A. W., Shuhaiber, A., Mashal, I., & Al-Okaily, M. (2024). Antecedents of Industry 4.0
  • capabilities and technological innovation: a dynamic capabilities perspective. European Business
  • Review, 36(4), 566-587.
  • Alkhwaldi, A. F., Al-Qudah, A. A., Al-Hattami, H. M., Al-Okaily, M., Al-Adwan, A. S., & Abu-Salih, B.
  • (2024). Uncertainty avoidance and acceptance of the digital payment systems: a partial least
  • squares-structural equation modeling (PLS-SEM) approach. Global Knowledge, Memory and
  • Communication, 73(8-9), 1119-1139.
  • Al-Bashayreh, M., Almajali, D., Al-Okaily, M., Masa’deh, R. E., & Samed Al-Adwan, A. (2022). Evaluating
  • electronic customer relationship management system success: the mediating role of customer
  • satisfaction. Sustainability, 14(19), 12310.
  • Alsmadi, A. A., Al-Okaily, M., Alrawashdeh, N., Al-Gasaymeh, A., Moh’d Al-hazimeh, A., & Zakari, A.
  • (2023). A bibliometric analysis of green bonds and sustainable green energy: evidence from the last
  • fifteen years (2007–2022). Sustainability, 15(7), 5778.
  • Alnsour, J., Arabeyyat, A. R., Alnsour, A. J., & Almasria, N. A. (2024). The Impact of Financial
  • Development, Foreign Direct Investment, and Trade Openness on Carbon Dioxide Emissions in
  • Jordan: An ARDL and VECM Analysis Approach. Journal of Risk and Financial Management,
  • 17(11), 490.
  • Bante, A. B., Dararo, K. F., Taddesse, N. K., & Dejene, I. N. (2025). Geospatial mapping and prediction of
  • informal settlement growth in Addis Ababa using GIS and logistic regression model. Discover
  • Environment, 3(1), 259.
  • Behera, I., Nanda, P., Mitra, S., Rath, S., & Senapati, S. (2023). Analyzing Market Volatility: Big Data's
  • Insight into Macroeconomic Indicators. 2023 International Conference on Data Science &
  • Informatics (ICDSI),
  • Bello, N. A., Adepoju, A. S., & Durosinmi, W. A. (2020). Factors influencing rental and capital values of
  • residential investment property in Abuja, Nigeria. International Journal of Real Estate Studies,
  • 14(1), 102-109.
  • Benshak, A. B., Adepetu, A. N., & Aliboh, V. (2024). Assessment of the Variations in Residential Rental
  • Values in Rantya-Gyel Jos, Plateau State, Nigeria. African Journal of Environmental Sciences and
  • Renewable Energy, 14(1), 13-29.
  • Beracha, E., & Downs, D. H. (2015). Value and momentum in commercial real estate: A market-level
  • analysis. Journal of Portfolio Management, 41(6), 48.
  • Borysoff, M. N., Mason, P., & Utke, S. (2024). Understanding private equity funds: A guide to private
  • equity research in accounting. Journal of Financial Reporting, 9(1), 21-49.
  • Brij, V. K. T. (2025). The Monetization Playbook: Digital Transformation Success in the Digital Economy.
  • Journal of Computer Science and Technology Studies, 7(4), 116-124.
  • Budogo, B. N., & Magina, F. B. (2024). Access to Land, Building Materials & Finance for Rental Housing
  • Production in Dodoma Capital City, Tanzania. International Journal of Social Science Research and
  • Review, 7(3), 52-65.
  • Chen, B. J. (2024). Average Annual Return (AAR): Definition, Calculation, and Example. Investopedia.
  • https://www.investopedia.com/terms/a/aar.asp
  • Chen, M., Robinson, C., & Singleton, A. (2025). Mapping multidimensional energy deprivation: Socio
  • spatial inequalities and policy implications in Great Britain. Computers, Environment and Urban
  • Systems, 121, 102324.
  • Data.gov. (2025). Catalog Harvesting, New York State (NY) (2008-2012). Available at:
  • https://catalog.data.gov (Accessed: 13 January 2025).
  • Demirchelie, E. (2022). Visual Communication of Key Concepts in Commercial Real Estate Analysis and
  • Investment Massachusetts Institute of Technology].
  • Derkacz, A. J., & Cohen, V. (2024). The Size of the Rental Housing Segment in Poland and its Main
  • Determinants. Real Estate Management and Valuation, 32(1), 49-57.
  • Devine, A., Sanderford, A., & Wang, C. (2024). Sustainability and private equity real estate returns. The
  • Journal of Real Estate Finance and Economics, 68(2), 161-187.
  • do Nascimento, G. A., Giannotti, M., Regueira, T. A., & Tomasiello, D. B. (2025). Identifying slum areas: A
  • multidimensional analysis leveraging with explanatory machine learning techniques. Sustainable
  • Cities and Society, 106645.
  • Eichholtz, P., Korevaar, M., Lindenthal, T., & Tallec, R. (2021). The total return and risk to residential real
  • estate. The Review of Financial Studies, 34(8), 3608-3646.
  • Farkas, I. D. (2023). Return on investing in residential real estate Vilniaus universitetas.].
  • Figlioli, B., & Lima, F. G. (2022). A proposed corporate distress and recovery prediction score based on
  • financial and economic components. Expert Systems with Applications, 197, 116726.
  • Gattis, L. (2023). Should I buy a Caribbean condo during a pandemic? Valuing a real estate investment
  • using cash flows. The CASE Journal, 19(2), 137-165.
  • Gigante, G., & Cozzio, G. (2021). Equity crowdfunding: An empirical investigation of success factors in
  • real estate crowdfunding. Journal of Property Investment & Finance, 40(6), 532-547.
  • Gopal, S., & Pitts, J. (2025). Regulation and Frameworks: Current and Future Reporting Trends. In The
  • FinTech Revolution: Bridging Geospatial Data Science, AI, and Sustainability (pp. 183-224).
  • Springer.
  • Gradillas, M., Castro, A., & Salandra, R. (2021). Understanding the adoption of voluntary environmental,
  • social and governance (ESG) standards in the real estate sector.
  • Hełdak, M., & Kucher, L. (2024). Apartment Rental Market in Border Cities of Poland and Ukraine.
  • Geomatics and Environmental Engineering, 18(2), 97-111.
  • Ifeanacho, K. P., & Egbenta, I. R. (2023). Application of income capitalization approach for emerging rental
  • income cash flow in Enugu metropolis property market. Property Management, 41(3), 454-471.
  • Ibrahim, A., Almasria, N. A., Alhatabat, Z. A., Ershaid, D. J. A., & Aldboush, H. H. (2025). Transforming
  • financial services with artificial intelligence and machine learning: Insights into opportunities and
  • emerging trends. In Utilizing AI and machine learning in financial analysis (pp. 129–148).
  • Ibrahim, A., Almasria, N. A., Almaqtari, F. A., Al-Kasasbeh, O., Alhatabatb, Z., & Ershaid, D. (2024). The
  • Impact of Green Finance, FinTech and Digital Economy on Environmental Sustainability: Evidence
  • from Advanced Panel Techniques. International Journal of Energy Economics and Policy, 14(6),
  • 621-627.
  • Jalihal Sharanappa, D. M. N. (2022). Quarterly Earnings Announcements And Stock Returns. Journal of
  • Pharmaceutical Negative Results, 10925-10935.
  • Kasim, I., Amidu, A.-R., & Levy, D. (2025). Factors influencing property valuation models development
  • and application as decision support systems. Property Management.
  • Kinatta, M. M., Kaawaase, T. K., Munene, J. C., Nkote, I., & Nkundabanyanga, S. K. (2021). Cognitive bias,
  • intuitive attributes and investment decision quality in commercial real estate in Uganda. Journal
  • of Property Investment & Finance, 40(2), 197-219.
  • Livingstone, N., & Sanderson, D. (2022). All grown up? Market maturity and investment in London's
  • purpose-built student accommodation sector. Journal of Property Investment & Finance, 40(6), 571
  • 587.
  • Madsen, M. D., Paasch, J. M., & Sørensen, E. M. (2022). The many faces of condominiums and various
  • management structures− The Danish case. Land Use Policy, 120, 106273.
  • Manzano, A. (2022). Conducting focus groups in realist evaluation. Evaluation, 28(4), 406-425.
  • Marçal, K. E., Fowler, P. J., & Hovmand, P. S. (2023). Feedback dynamics of the low‐income rental housing
  • market: exploring policy responses to COVID‐19. System Dynamics Review, 39(4), 371-403.
  • McGaffin, R., Viruly, F., & Boyle, L. (2019). An investigation into the use of land-based financing to fund
  • infrastructure in South Africa. Journal of Property Investment & Finance, 39(3), 183-198.
  • McGough, T., & Berry, J. (2020). Pricing risk and its use in modelling real estate market yields. Journal of
  • Property Investment & Finance, 38(5), 419-433.
  • Menezes, L. R. d., Lacerda, N., & Primavera, L. L. (2023). Low-income rental and heritage preservation:
  • the case of Boa Vista (Recife). Cadernos Metrópole, 25, 1171-1199.
  • Mukumbang, F. C. (2023). Retroductive theorizing: a contribution of critical realism to mixed methods
  • research. Journal of Mixed Methods Research, 17(1), 93-114.
  • Mustofa, M. T. L., Pratama, A. A. N., Wicaksono, P. N., Pasagi, Y., & Rini, P. (2023). ANALYSIS OF NON
  • PERFORMING FINANCING IN MEDIATING THE INFLUENCE OF INCOME
  • DIVERSIFICATION, INFLATION, GROSS DOMESTIC PRODUCT, AND SIZE OF THE BANK
  • ON STABILITY. Jurnal Ekonomi, 12(04), 933-939.
  • Ngoc, N. M., Tien, N. H., & Hieu, V. M. (2023). The relevance of factors affecting real estate investment
  • decisions for post pandemic time. International journal of business and globalisation.
  • Ntabanganyimana, J., Dar, A. A., Nain, M., & Ahmad, M. (2025). Different Portfolio on Investment: A
  • Practical Work to Reduce Risks. In Unveiling Investor Biases That Shape Market Dynamics (pp.
  • 69-86). IGI Global Scientific Publishing.
  • Odimegwu, C., & Anyakora, M. (2023). Land value capture through land based taxation: For sustainable
  • infrastructure finance in Anambra State, Nigeria. coou African Journal of Environmental Research,
  • 4(1), 121-138.
  • Ogunbiyi, J. O. (2023). Practical Demonstrations of the Use of Select Property Investment Viability
  • Appraisal Models: Net Present Value, Profitability Index and Net Terminal Value. Profitability
  • Index and Net Terminal Value (May 25, 2023).
  • Phillips, P. P. (2023). Return on investment (ROI) basics. Association for Talent Development.
  • Pisal, P., Reddy, K. K., Kishore, J., Jonnalagadda, R. R., Kumar, M., Band, G., & Joshi, B. (2025). An
  • integrated TOPSIS and ARAS method multi-criteria decision-making approach for optimizing
  • investment portfolios using goal programming and genetic algorithm model. Scientific Reports,
  • 15(1), 34450.
  • Potrawa, T., & Tetereva, A. (2022). How much is the view from the window worth? Machine learning
  • driven hedonic pricing model of the real estate market. Journal of Business Research, 144, 50-65.
  • Qiu, Z. (2023). Factors positively affecting decision to rent the condominium of Chinese tenants at rama 9
  • street, Huai Khwang district, Bangkok, Thailand.
  • Riddiough, T. J. (2022). Pension funds and private equity real estate: history, performance, pathologies,
  • risks. In Handbook of real estate and macroeconomics (pp. 371-412). Edward Elgar Publishing.
  • Robin, E. (2022). Performing real estate value (s): real estate developers, systems of expertise and the
  • production of space. Geoforum, 134, 205-215.
  • Robinson, D. T., & Sensoy, B. A. (2016). Cyclicality, performance measurement, and cash flow liquidity in
  • private equity. Journal of Financial Economics, 122(3), 521-543.
  • Saengchote, K., & Charoenpanich, C. (2021). Cash flow uncertainty and IPO underpricing: evidence from
  • income guarantee in Thai REITs. Journal of Property Investment & Finance, 39(6), 590-608.
  • Steininger, B. I., Groth, M., & Weber, B. L. (2021). Cost overruns and delays in infrastructure projects: the
  • case of Stuttgart 21. Journal of Property Investment & Finance, 39(3), 256-282.
  • Szilágyi, L., Lefkovits, L., & Iclanzan, D. (2020). A review on suppressed fuzzy c-means clustering models.
  • Acta Universitatis Sapientiae Informatica, 12(2), 302-324.
  • Tamilmathi, T., & Priya, R. S. (2023). Real Estate Investors Perception towards Investments. Journal for
  • ReAttach Therapy and Developmental Diversities, 6(10s (2)), 2298-2302.
  • Tan, Q. C., Yijun & Wang, Xingyan & Zeng, Zexin. (2022). Studies on the Modifications and Applications
  • of the Net Present Value and Internal Rate of Return. https://doi.org/10.2991/978-2-494069-31-2_117
  • Tang, B. s., Ho, W. K., & Wong, S. W. (2021). Sustainable development scale of housing estates: An
  • economic assessment using machine learning approach. Sustainable Development, 29(4), 708-718.
  • Torkian, V., Bamdad, S., & Sarfaraz, A. H. (2025). Integrating AI and OR for investment decision-making
  • in emerging digital lending businesses: a risk-return multi-objective optimization approach.
  • Journal of the Operational Research Society, 1-20.
  • Walia, S., Sarkar, S., Mohanty, B., & Pal, S. (2023). Practice Briefing Analysis of the emergence and initial
  • performance of REITs in India. Journal of Property Investment & Finance, 41(2), 256-268.
  • Wang, C., Chen, Y., Zhang, S., & Zhang, Q. (2022). Stock market index prediction using deep Transformer
  • model. Expert Systems with Applications, 208, 118128.
  • Weber, R. (2021). Embedding futurity in urban governance: Redevelopment schemes and the time value
  • of money. Environment and Planning A: Economy and Space, 53(3), 503-524.
  • Wong, W. C., Soon, J.-J., Abdullah, N. A. H., & Abdullah, M. R. B. (2025). The impact of developers’ market
  • power on the launch prices of new houses in Malaysia. International Journal of Housing Markets
  • and Analysis.
  • Zhang, D., & Zhang, F. (2025). AI-Assisted Identification and Equity Assessment of Vulnerable Population
  • Impacts in US Energy Transition. Journal of Advanced Computing Systems, 5(7), 1-17.
  • Zheng, Y., Zhang, J., Shukla, K. N., O’Leary, M., Wang, D. X., & Xu, J. (2025). Leveraging interactive
  • visualizations and LLM-driven explanations for transparent multi-objective portfolio
  • management. Discover Data, 3(1), 50.
  • Zhou, J. (2023). The private sector in the rental housing market. BCP Business & Management, 43, 125–129.
  • https://api.semanticscholar.org/CorpusID:257751783.
  • Nicholas, T., & Scherbina, A. (2013). Real estate prices during the roaring twenties and the great
  • depression. Real Estate Economics, 41(2), 278-309.