The impact of accessibility by public transport on real estate values: A comparison between the cities of Rome and Santander

Abstract

Empirical evidence supports the hypothesis that greater accessibility to opportunities can have a positive impact on real estate values. However, this capitalisation of the benefits of accessibility could vary between different study areas. This research estimates hedonic and spatial hedonic models in two urban areas to compare if differences can be found in the impact accessibility using public transport has on residential property values. The two study areas chosen for comparison are a medium sized city without any major mobility problems (Santander, Spain) and a very large city with major congestion problems (Rome, Italy). The estimated hedonic models have considered the possible presence of spatial effects, a common occurrence with real estate data which may generate dependency in the residuals of hedonic models. Accessibility has been measured using two types of indicators: relative and gravity based. The results confirm that accessibility was a positive factor on property prices in both cities, although in Santander this was only true using the relative indicator to the city centre. These results are relevant for supporting the introduction of value capture policies which provide finance for new projects to extend and encourage greater use of public transport.

Impact of rail transit station proximity to commercial property prices: utilizing big data in urban real estate

“…Each building's geolocation, including its latitude and longitude that were retrieved to measure the building's distance to the nearest transit station. Four building typologies were selected due to their capability to attract a significant number of users taking transit mode rather than automobiles for mobility [23,38,39]. All of these data will then be plotted in the Geographic information system (GIS).…”

Land Value Capture Modeling in Commercial and Office Areas using a Big Data Approach

“…Several cities in the world have used Transit Oriented Development (TOD) to formulate policies and strategies for urban development (Suzuki et al, 2015;Berawi et al, 2019). To carry out value capture, several implementation methods are used, such as property-based developments and others relying on taxes or fees charged on property affected by TOD (Zhang & Xu, 2017;Cordera et al, 2019). Property values are affected by infrastructure development, especially rail and its characteristics including physical attributes, location, and environment.…”

Hidden Public Value Identification of Real Estate Management Decisions

“…Studies show that the drop of real estate value is related to the accessibility to central business districts. In the case of Rome (Italy) this influence is reflected in a loss of 0.6% of total value per minute of journey, while in the case of Santander (Spain), it reaches as much as 1% per minute of journey (CORDERA et al 2018). The influence of the rapid public transport system also differs for other kinds of land uses.…”