SAVITRIBAI PHULE PUNE UNIVERSITY

A
MINI-PROJECT REPORT

ON

“HOUSE PRICE PREDICTION”

(A project to fulfill the requirements of DS & BDA Lab)

By
Manav Shandilya

307B014

Under the guidance of

(Prof. S. S. Shinde)

DEPARTMENT OF INFORMATION TECHNOLOGY

 SINHGAD INSTITUTE OF TECHNOLOGY & SCIENCE, PUNE
(Academic Year: 2022 – 2023)

DEPARTMENT OF INFORMATION TECHNOLOGY

SINHGAD COLLEGE OF ENGINEERING

VADGAON, PUNE

CERTIFICATE

This is to certify that final project work entitled “ House Price Prediction”
was successfully carried by
Manav Shandilya

In the partial fulfillment of the DS & BDA LAB course during Semester-
II of Third Year of Information Technology prescribed by the
SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE.

Guide H.O.D
(Prof S.S. Shinde) (Dr. S.R. Ganorkar)

Principal
(Dr. S. D. Lokhande)
 Acknowledgement

We feel great pleasure in expressing our deepest sense of gratitude and sincere
thanks to my guide Prof. S. S. Shinde for their valuable guidance during the Project
work, without which it would have been a very difficult task. We have no words to
express my sincere thanks for valuable guidance, extreme assistance and cooperation
extended to all the Staff Members of the Department of Information Technology.
This acknowledgement would be incomplete without expressing my special
thanks to Dr. S. R. Ganorkar Head of the Department (Information Technology) for
their support during the work. We would also like to extend my heartfelt gratitude to
my Principal, Dr. S. D. Lokhande who provided a lot of valuable support, mostly
being behind the veils of college bureaucracy.
Last but not least I would like to thank all the Teaching, Non- Teaching staff
members of my Department, my parents and my colleagues who helped me directly or
indirectly for completing this Project successfully.
 ABSTRACT

House/Home are a basic necessity for a person and their prices vary from location to
location based on the facilities available like parking space, locality, etc. The house
pricing is a point that worries a ton ofresidents whether rich or white collar class as one
can never judge or gauge the valuing of a house based on area or offices accessible. Real
estate is the least transparent industry in our ecosystem. Housing prices keep changing
day in and day out and sometimes are hyped rather than being based on valuation.

This research provides an overview about how to predict house costs utilizing different
regression methods with the assistance of python libraries. The proposed technique
considered the more refined aspects used for the calculation of house price and provide
the more accurate prediction. It also provides a brief about various graphical and
numerical techniques which will be required to predict the price of a house. This
research contains what and how the house pricing model works with the help of
machine learning and which dataset is used in our proposed model.
 TABLE OF CONTENT

Chapter
Page No
Chapter 1: Introduction 1

1.1 Problem Statement and Questions 2

1.2 Objective 2
Chapter 2: Theoretical Background 3

2.1 Methodology 3
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Chapter 3: Experimental Work
3.1 Programming Language 6
3.2 Libraries 6
Chapter 4: Result 7

4.1 Correlation with Heatmap 7

4.2 Linear regression output 8

4.3 Random Forest Regression output 8
4.4 Model analysis table 9
Chapter 5: Conclusion 10

Chapter 6: References 11
 CHAPTER 1: INTRODUCTION

Buying of a house is one of the greatest and significant choice of a family as it expends
the entirety of their investment funds and now and again covers them under loans. It is
the difficult task to predict the accurate values of house pricing. Our research would
make it possible to predict the exact prices of houses. This research is proposed to
predict house prices and to get better and accurate results. The stacking algorithm is
applied on various regression algorithms to see which algorithm has the most accurate
and precise results. This would be of great help to the people because the house pricing
ids a topic that concerns a lot of citizens whether rich or middle class as one can never
judge or estimate the pricing of a house on the basis of locality or facilities available.
To accomplish this task, the python programming language is used. Python is a high
level programming language for general purpose programming.

For our research, we have considered Pune as our primary location and are predicting
real-time house prices for various localities in and around Pune. In metropolitan city
like Pune, the prospective home buyer considers several factors such as location, size of
the land, proximity to parks, schools, hospitals, power generation facilities, and most
importantly the house price. We have taken into account a verified dataset with diversity
so as give accurate results for all conditions. Regression techniques are widely used to
build a model based on several factors to predict price. In this study, we have made an
attempt to build house price prediction regression model for data set that remains
accessible to the public. We have considered prediction models, they are ordinary least
squares model.
1.1. PROBLEM STATEMENT

Given a dataset containing information about houses (e.g., number of bedrooms, square
footage, location, etc.) and their corresponding sale prices, the task is to build a machine
learning model that can accurately predict the sale price of a new house given its features.

The objective of this problem statement is to create a model that can help potential buyers
and sellers make informed decisions about the price of a house. Additionally, real estate
agents and property developers can also use this model to estimate the price of a property
they are interested in buying or selling.

The model's performance will be evaluated based on metrics such as root mean squared
error (RMSE) and mean absolute error (MAE), with the goal of minimizing these metrics
and producing the most accurate predictions possible.

1.2. OBJECTIVES:

 To predict the efficient house pricing for customers with respect to their budgets
and priorities.

 To develop a model which predicts the property cost for a customer according to
their interest.

 To minimize the difference between predicted and actual rating (RMSE/MSE).

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 CHAPTER 2: THEORETICAL BACKGROUND

2.1. METHODOLOGY:

Detailed analysis of this data set composed of data collection, data cleaning, data
visualisation and data pre-processing so that we get a proper data set to work upon. Data
collection is the process of gathering information on variables in a systematic manner.
We found this dataset on Kaggle, which would suite our project objective. Data
Visualization is the graphical representation of information. Data pre- processing is the
process of transforming data before feeding it into the algorithm. It is an information
mining strategy that includes moving crude information into a justifiable organization.
The result of data pre-processing is the last dataset utilized for preparing and testing
reason. Data cleaning is the process of detecting and removing errors to increase the
value of data.

Linear Regression:
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. Different regression models differ based on – the kind of
relationship between dependent and independent variables they are considering, and the
number of independent variables getting used.
Linear regression is used in many different fields, including finance, economics, and
psychology, to understand and predict the behavior of a particular variable.

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 Fig 2.1: LINEAR REGRESSION

Random Forest Regression:

Random Forest is a popular machine learning algorithm that belongs to the supervised
learning technique. It can be used for both Classification and Regression problems in
ML. It is based on the concept of ensemble learning, which is a process of combining
multiple classifiers to solve a complex problem and to improve the performance of the
model.
Random Forest is a classifier that contains a number of decision trees on various
subsets of the given dataset and takes the average to improve the predictive accuracy of
that dataset." Instead of relying on one decision tree, the random forest takes the
prediction from each tree and based on the majority votes of predictions, and it predicts
the final output.

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Fig.2.2: Random Forest Regression

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 CHAPTER 3: EXPERIMENTAL WORK

PROGRAMMING LANGUAGE:

Python is an interpreted, interactive, object-oriented programming language. It

incorporates modules, exceptions, dynamic typing, very high level dynamic data
types, and classes. It supports multiple programming paradigms beyond object-
oriented programming, such as procedural and functional programming.

Python is a computer programming language often used to build websites and

software, automate tasks, and conduct data analysis. Python is a general-purpose
language, meaning it can be used to create a variety of different programs and isn't
specialized for any specific problems.

LIBRARIES:

 Pandas
 Seaborn
 Matplotlib

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 CHAPTER 4: RESULT

4.1. CORRELATION WITH HEATMAP:

A correlation heatmap is a heatmap that shows a 2D correlation matrix

between two discrete dimensions, using colored cells to represent data
from usually a monochromatic scale. The values of the first dimension
appear as the rows of the table while of the second dimension as a
column.

Fig 4.1: Correlation with heatmap

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4.2. LINEAR REGRESSION OUTPUT:

Fig 4.2 LR SCORE

4.3. RANDOM FOREST REGRESSION OUTPUT:

Fig 4.3 RFR SCORE

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4.4 MODEL ANALYSIS TABLE:

MODEL NAME RESULT (in MAPE)R-1 RESULT (in MAPE)R-2

LINEAR REGRESSION 0.18741683841599854 0.18871583863599754

RANDOM FOREST 0.19650986420700453 0.19168874886446152

REGRESSION

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 CHAPTER 5: CONCLUSION

Thus, House Price Prediction data is successfully analyzed using Linear

Regression and Random Forest Regression model techniques of Machine
Learning.
The sales price for the houses are calculated using different algorithms. The sales prices
have been calculated with better accuracy and precision. This would be of great help for
the people. To achieve these results, various data mining techniques are utilized in python
language. The various factors which affect the house pricing should be considered and
work upon them. Machine learning has assisted to complete out task.

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 CHAPTER 6: REFERENCES

 https://www.geeksforgeeks.org/house-price-prediction-using-machine-
learning-in- python/

 https://www.geeksforgeeks.org/ml-linear-regression/

 https://www.ibm.com/topics/linear-regression

 https://www.javatpoint.com/multiple-linear-regression-in-machine-

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