Enhancing Automated Valuation Models with LLM-based Feature Engineering and Spatial Indices and a RAG-Integrated Web Application for Trójmiasto Residential Market
Piotr Kłopotowski, Olgun Aydin
DOI: http://dx.doi.org/10.15439/2026F2863
Citation: Piotr Kłopotowski, Olgun Aydin (2026). Enhancing Automated Valuation Models with LLM-based Feature Engineering and Spatial Indices and a RAG-Integrated Web Application for Trójmiasto Residential Market. In M. Bolanowski, M. Ganzha, M. Grzegorowski, L. Maciaszek, M. Paprzycki, A. Paszkiewicz, D. Ślęzak (eds), Proceedings of the 21st Conference on Computer Science and Intelligence Systems (FedCSIS). ACSIS, Vol. 47, pages 185–190.
Abstract. This paper presents a methodology for building robust Automated Valuation Models (AVMs) for residential properties in the Tricity (Gda\'nsk, Gdynia, Sopot) metropolitan area. Utilising a dataset of over 45,000 listings scraped over a nine-month period. We proposed an enriched feature engineering pipeline that integrates spatial indices (Points of Interest and public transport proximity) with unstructured data extracted via Large Language Models (LLMs). We evaluated the performance of XGBoost and Random Forest algorithms for both sale and rental price prediction. Results indicate that while traditional features like size and location remain dominant, the inclusion of custom spatial indices and LLM-extracted variables, such as utility fees for rentals, provides measurable improvements in model precision. Additionally, the paper focuses on a web application for analyzing residential market and outlines a practical application of RAG implementation for enhanced residential listing search based on the description of listings throught the web application.
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