TY - JOUR
T1 - Quality of urban area, distance from city centre, and housing value: Case study on real estate values in Turin
AU - Acci, Luca
PY - 2019
Y1 - 2019
N2 - A tremendous number of studies have investigated the relation between real estate value and characteristics of the area.
This paper briefly shows more than one hundred empirical results from the literature, quantifying how much positional
factors such as green, social context, pedestrian areas, pollution, aesthetics, views and accessibility influence the property
value. We call Positional Value that part of the real estate value given from the characteristics of the area. As an empirical
example, an analysis of the city of Turin shows how, changing the area of the city, the value of a house increases/decreases
as much as 142% of its own value, ceteris paribus, even among areas quite close to each other. More specifically, the
output of this study indicates that the real estate value decreases by 0.23% for each 1% increase of the distance from the
city centre, but increases by 0.58% for each 1% increase of the quality of the site. The monetary costs of housing, time
and transport, and the qualitative benefits received from the site’s characteristics, play a main role within the households’
decision processes when choosing among alternative dwellings. On the other way round, the quality of the area is
capitalised by the real estate value which may then be seen an indicator of the former.
AB - A tremendous number of studies have investigated the relation between real estate value and characteristics of the area.
This paper briefly shows more than one hundred empirical results from the literature, quantifying how much positional
factors such as green, social context, pedestrian areas, pollution, aesthetics, views and accessibility influence the property
value. We call Positional Value that part of the real estate value given from the characteristics of the area. As an empirical
example, an analysis of the city of Turin shows how, changing the area of the city, the value of a house increases/decreases
as much as 142% of its own value, ceteris paribus, even among areas quite close to each other. More specifically, the
output of this study indicates that the real estate value decreases by 0.23% for each 1% increase of the distance from the
city centre, but increases by 0.58% for each 1% increase of the quality of the site. The monetary costs of housing, time
and transport, and the qualitative benefits received from the site’s characteristics, play a main role within the households’
decision processes when choosing among alternative dwellings. On the other way round, the quality of the area is
capitalised by the real estate value which may then be seen an indicator of the former.
UR - https://authors.elsevier.com/tracking/article/details.do?aid=2177&jid=JCIT&surname=D%27Acci
U2 - 10.1016/j.cities.2018.11.008
DO - 10.1016/j.cities.2018.11.008
M3 - Article
SN - 0264-2751
VL - 91
SP - 71
EP - 92
JO - Cities
JF - Cities
ER -
