The Effects of Urban Transformation Projects on the Real Estate Market: A Case Study in Bari (Italy)

Abstract

In the present research the effects of urban transformation projects on the housing prices have been analyzed. With reference to a redevelopment initiative in the peripheral area of the city of Bari (Southern Italy), the study has been carried out on a sample of two hundred residential properties, sold in the period 2017–2019 and located in the peripheral district. The main influencing factors considered by sellers and buyers in the negotiation phase have been collected. The application of a data-driven technique has allowed to identify a statistically reliable model through which the functional relationships between the variables considered and the selling prices in the current state have been detected, and the new market values generated by the redevelopment project have been then determined, in order to compare them with those relating to the current state. The results obtained point out an increase in the values of the sample properties as a result of the redevelopment project, confirming the empirically expected outputs.