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CPS1198 Firano Z. et al.
Figure 1. Value of Real Assets of Rabat Region (data 2014)

The producer of real estate data in Morocco is land conservation. It holds
all the information on the characteristics of the goods and the different actions
of sales and purchases. We were able to access their 2014 database for the
Rabat region. Indeed, our analysis will focus on the central regions of the
capital, Témara and Hay Riad-Agdal. These three zones constitute the most
important regions in the greater region of the capital of Morocco.
A hedonic price index is established through the estimation of the hedonic
function. A hedonic function is an econometric relation between the price of
a dwelling and the quantities of the characteristics of a dwelling. In general,
the establishment of a hedonic function consists in estimating a statistical
model in the form:

ln( ) =∝ ∑ . , +

=1

"Pi" is the price of dwelling and "X" the quantity of characteristic n of
dwelling j. in the empirical literature, the endogenous variable can be
approximated either by the price of housing or by the price divided by the
area (price per square meter). As for the exogenous variables to be considered
in the hedonic model, they are generally controversial, often introduced; the
geographical location, the size and type of housing, overall any other
characteristics likely to affect the evolution of property prices. To this may be
added the variables; age or housing facilities.
We start elementarily by considering that the value of a reference stock
(here the year of the database, i.e. 2014). To set up the index, it is necessary to
have the current year of which we have no data; this configuration will
calculate the real estate price index, according to the following training:

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