In this master thesis, the impact of location on apartment value in the municipality of Ljubljana was analyzed. The main purpose was to define an objective value frame that would help the user to compare two locations, consequently the value range and factors of location were analyzed. All neighborhoods that were selected in the Municipality of Ljubljana were built in the period 1947 – 1986. For this research, realized sales transactions of apartments in specific neighborhoods in Municipality of Ljubljana were used. It was investigated, if there are statistically significant differences between the average of apartment prices (€/m2) in each of neighborhoods, and how the significant differences are. There were defined micro location factors into detail. The factors of micro location are all easily measurable and therefore represent the most basic characteristics of the location. It was investigated that with micro location factors is explained 31 % of the variability value, using multiple regression analysis. The research was made using cluster analysis to determine which of the neighborhoods have the most similar factors of micro location. The set of comparable neighborhoods were therefore obtained and the results of both methods were evaluated and compared. Based on different factors of micro location the statistically significant differences in average prices of apartments were explained. Used methodology and the results can help the user to compare two locations in the Municipality of Ljubljana.