Real estate assets are part of a category of assets called heterogeneous assets. Each property is different and as a result it is difficult to derive a consistent pricing model for real estate assets. The specification presents an innovative framework for modelling real estate assets. This framework based on genetics enables the identification and standardization of relevant factors to be used in pricing and hedging real estate assets. The model defines a new concept of randomness called multi-factorial causal random walk to be used for modelling real estate prices. This concept represents for real assets what the random walk based on the Brownian motion is for financial assets.