Empirical evidence supports the hypothesis that greater accessibility and the presence of green areas can have a positive impact on property values. However, the capitalization of these benefits varies across different areas studied. Here, a hedonic model referring to a sub-area of the Italian city of Bari is estimated to quantify the impact of public transport accessibility, specifically Bari railway station, on real estate value differentials. The novelty of the paper lies in the use of differential values, deriving from the difference between commercial values and the cadastral values of real estate units, which are an expression of all those elements that do not characterize the properties. Economic influence on the price differential of the presence of fixed share capital in the proximity of the properties being valued is therefore considered. The estimates provided in this paper allow for quantifying the economic contribution of the railway station and green areas, innovating the quantitative methods used so far. It is, therefore, possible to affirm that the infrastructural endowments that significantly characterize the settlement/location areas affect the differentials of the property values. This is since these represent the quality of the services offered, both directly and indirectly, and as such are considered positive in measuring the impact on the final property values. This contribution allows for no more distorted measurements of the real estate values/differentials and is useful for more correct quantification of taxable bases by financial administrations for the taxation of real estate. The methodology proposed in this paper can be replicated in any other geographical area, under the condition of having a good data set. Finally, further research can be developed by assuming other functional forms, apart from the one proposed here of a Box-Cox function, with the use of linear transformations.
Hedonic prices and economic evaluations of green areas and transport infrastructures incidences on real estate values
Venezia E.
2023-01-01
Abstract
Empirical evidence supports the hypothesis that greater accessibility and the presence of green areas can have a positive impact on property values. However, the capitalization of these benefits varies across different areas studied. Here, a hedonic model referring to a sub-area of the Italian city of Bari is estimated to quantify the impact of public transport accessibility, specifically Bari railway station, on real estate value differentials. The novelty of the paper lies in the use of differential values, deriving from the difference between commercial values and the cadastral values of real estate units, which are an expression of all those elements that do not characterize the properties. Economic influence on the price differential of the presence of fixed share capital in the proximity of the properties being valued is therefore considered. The estimates provided in this paper allow for quantifying the economic contribution of the railway station and green areas, innovating the quantitative methods used so far. It is, therefore, possible to affirm that the infrastructural endowments that significantly characterize the settlement/location areas affect the differentials of the property values. This is since these represent the quality of the services offered, both directly and indirectly, and as such are considered positive in measuring the impact on the final property values. This contribution allows for no more distorted measurements of the real estate values/differentials and is useful for more correct quantification of taxable bases by financial administrations for the taxation of real estate. The methodology proposed in this paper can be replicated in any other geographical area, under the condition of having a good data set. Finally, further research can be developed by assuming other functional forms, apart from the one proposed here of a Box-Cox function, with the use of linear transformations.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
