Econometric models of real estate prices with interactions

The main aim of the article was to determine the factors influencing the unit prices of agricultural real estate on the outskirts of an urban agglomeration (Szczecin, Poland). The impact of the variables available in the database was determined on the basis of an econometric model with interactions between explanatory variables. The database contains information on 54 agricultural real estate transactions. The analysis period covers the years 2017-2022. Based on the estimated econometric models, it can be concluded that the real estate unit prices depend on their area, distance from the city borders, real estate surroundings as well as time and location. Interactions between distance from the city borders and surroundings and time (year of transaction) are also statistically significant. Presented models might assist expert systems supporting private investments as well as many type of public policies.