Skip to main content
Log in

Measuring the effects of transportation infrastructure location on real estate prices and rents: investigating the current impact of a planned metro line

  • Article
  • Published:
EURO Journal on Transportation and Logistics

Abstract

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

References

  • Picard N, Antoniou C (2011) Econometric guidance for developing urbansim models. First lessons from the sustaincity project. In: Proceedings of the 51st European Congress of the Regional Science Association International, Barcelona, Spain

  • Le Sage J, Pace RK (2009) Introduction to spatial econometrics. CRC Press, Taylor and Francis Group, Boca Raton

  • Wegener M (2004) Overview of land-use transport models. In: Hensher DA, Button KJ (eds) Transport geography and spatial systems, vol 5, pp 127–146. UK Pergamon/Elsevier, Kidlington

  • Waddell P (2002) Urbansim: modelling urban development for land use, transportation and environmental planning. J Am Plan Assoc 68(3):297–314

    Article  Google Scholar 

  • Wegener MM (2011) From macro to micro-how much micro is too much?. Transp Rev 31(2):161–177

    Article  Google Scholar 

  • Hunt JD, Kriger DS, Miller EJ (2005) Current operational urban land-use-transport modelling frameworks: a review. Transp Rev Transnatl Transdiscipl J 25(3):329–376

    Article  Google Scholar 

  • Saifuzzaman M, De Palma A, Motamedi K (2012) Calibration of metropolis for ile-de-france. Working paper 7.2. Technical report, CES, ENS-Cachan, France

  • Echenique MH (1985) The use of integrated land use and transport models: the cases of Sao Paulo, the use of integrated land use and transport models: the cases of Sao Paulo, Brazil and Bilbao, Spain, chapter: the use of integrated land use and transport models: the cases of Sao Paulo, Brazil and Bilbao, Spain, pp 263–286. Elsevier, the Hague

  • Putman SH (1983) Integrated urban models: policy analysis of transportation and land use. Pion Press, London

    Google Scholar 

  • Martínez F, Donoso P (2010) The mussa II land use auction equilibrium model. In: Francesca P, John P, David S (eds) Residential location choice, advances in spatial science, pp 99–113. Springer, Berlin

  • Salvini P, Miller EJ (2005) Ilute: an operational prototype of a comprehensive microsimulation model of urban systems. Netw Spat Econ 5:217–234

    Article  Google Scholar 

  • Anas A (1998) Nymtc transportation models and data initiative: the nymtc land use model. Technical report, Alex Anas and Associates, Williamsville

    Google Scholar 

  • Lancaster K (1966) A new approach to consumer theory. J Polit Econ 74:132–157

    Article  Google Scholar 

  • McFadden D (1974) Conditional logit analysis of qualitative choice behavior. In: Zarembka P (ed) Frontiers in economics. Academic Press, New York

  • McFadden D (1981) Econometric models of probabilistic choice. In: Manski C, McFadden D (eds) Structural analysis of discrete data with econometric applications, vol 198–272. MIT Press, Cambridge

  • Alonso W (1964) Location and land use. Harvard University Press, Cambridge

    Book  Google Scholar 

  • Wheaton WC (1977) A bid rent approach to housing demand. J Urban Econ 4(2):200–217

    Article  Google Scholar 

  • Rosen S (1974) Hedonic prices and implicit markets: product differentiation in pure competition. J Polit Econ 82:34–55

    Article  Google Scholar 

  • Brown JN, Rosen HS (1982) On the estimation of structural hedonic price models. Econometrica 50(3):765–769

    Article  Google Scholar 

  • Epple D, Sieg H (1999) Estimating equilibrium models of local jurisdictions. J Polit Econ 107:645–681

    Article  Google Scholar 

  • Bartik TJ (1987) The estimation of demand parameters in hedonic price models. J Polit Econ 95(1):81–88

    Article  Google Scholar 

  • Bajari P, Benkard CL (2004) Demand estimation with heterogeneous consumers and unobserved product characteristics: a hedonic approach. Stanford University

  • Anselin L (1988) Spatial econometrics: methods and models. Springer, Berlin

    Google Scholar 

  • Bowes D, Ihlanfeldt K (2001) Identifying the impacts of rail transit stations on residential property values. J Urban Econ 50(1):1–25

    Article  Google Scholar 

  • Weinberger RR (2000) Light rail proximity: benefit or detriment in the case of santa clara country, California? Transp Res Rec J Transp Res Board

  • Cervero R, Duncan M (2002) Transit’s value-added effects: light and commuter rail services and commercial land values. Transp Res Rec J Transp Res Board 1805:8–15

    Article  Google Scholar 

  • Damn D, Lerman SR, Lerner-Lam E, Young J (1980) Response of urban real estate values in anticipation of the washington metro. J Transp Econ Policy 14(3):315–336

    Google Scholar 

  • Cervero R, Landis J (1993) Assessing the impacts of urban rail transit on local real estate markets using quasi-exparimental comparisons. Transp Res Part A Policy Pract 27(1):13–22

    Article  Google Scholar 

  • Benjamin JD, Sirmans GS (1996) Mass transportation, apartment rent and property values. J R Estate Res 12(1):1–8

    Article  Google Scholar 

  • Hess DB, Almeida TM (2007) Impact of proximity to light rail rapid transit on station-area property values in buffalo, New York. Urban Stud 44:1041–1068

    Article  Google Scholar 

  • Clower TL, Weinstein BL (2002) The impact of Dallas (Texas) area rapid transit light rail stations on taxable property valuations. Aust J Reg Stud 8(3):389–402

    Google Scholar 

  • Bajic V (1983) The efects of a new subway line on housing prices in metropolitan toronto. Urban Stud 20(2):147–158

    Article  Google Scholar 

  • Haider M, Miller EJ (2000) Effects of transportation infrastructure and location on residential real estate values: application of spatial autoregressive techniques. Transp Res Rec J Transp Res Board 1722:1–18

    Article  Google Scholar 

  • Al-Mosaind MA, Dueker KJ, Strathman JG (1993) Light-rail transit stations and property values: a hedonic price approach. Transp Res Rec J Transp Res Board 1400:90–94

    Google Scholar 

  • Chen H, Rufolo A, Dueker KJ (1997) Measuring the impact of light rail systems on single family home values: a hedonic approach with GIS application. Discusssion paper 97-3, Portland State University

  • Debrezion G, Pels E, Rietveld R (2006) The impact of rail transport on the real estate prices: an empirical analysis of the dutch housing market. Department of Spatial Economics, Tinbergen Institute discussion paper, Tinbergen Institute, Free University

  • Debrezion G, Pels E, Rietveld P (2007) The impact of railway stations on residential and commercial property value: a meta-analysis. J R Estate Fin Econ 35:161–180

    Article  Google Scholar 

  • Theebe MAJ (2004) Planes, trains, and automobiles: the impact of traffic noise on house prices. J R Estate Fin Econ 28(2–3):209–234

    Article  Google Scholar 

  • Dorantes LM, Paez A, Vassallo JM (2011) Analysis of house prices to assess the economic impacts of new public transport infrastructure: Madrid metro line 12. Transp Res Rec J Transp Res Board 2245

  • Henneberry J (1998) Transport investment and house prices. J Prop Valuat Invest 16(2):144–158

    Article  Google Scholar 

  • Pennington G, Topham N, Ward R (1990) Aircraft noise and residential property values adjacent to manchester international airport. J Transp Econ Policy 25(1):49–59

    Google Scholar 

  • Collins A, Evans A (1996) Aircraft noise and residential property values. J Transp Econ Policy 28(2):175–197

    Google Scholar 

  • Lipscomb C (2003) Small cities matter, too: the impacts of an airport and local infrastructure on housing prices in a small urban city. Rev Urban Reg Develop Stud 15(3):255–273

    Article  Google Scholar 

  • Pan H, Zhang M (2008) Rail transit impacts on land use: evidence from shanghai china. Transp Res Rec J Transp Res Board 2048:15–25

    Article  Google Scholar 

  • Bae C-HC, Jun M-J, Park H (2003) The impact of seouls subway line 5 on residential property values. Transp Policy 10(3):85–94

    Article  Google Scholar 

  • Langley J (1981) Highways and property values: the washington beltway revised. Transp Res Rec J Transp Res Board 812:16–21

    Google Scholar 

  • Nelson JP (1982) Highway noise and property values: a survey of recent evidence. J Transp Econ Policy 16(2):117–138

    Google Scholar 

  • Kissling WD, Gudrun C (2008) Spatial autocorrelation and the selection of simultaneous autoregressive models. J Glob Ecol Biogeogr 17(1):59–71

    Google Scholar 

  • Anselin L (2010) Thirty years of spatial econometrics. Pap Reg Sci 89(1):3–25

    Article  Google Scholar 

  • Fotheringham AS, Charlton ME, Brunson C (1998) Geographically weighted regression: a natural evolution of the expansion method for spatial data analysis. Environ Plan A 30:1905–1927

    Article  Google Scholar 

  • Kelejian H, Prucha I (1999) A generalized moments estimator for the autoregressive parameter in a spatial model. Int Econ Rev 40(2):509–533

    Article  Google Scholar 

  • Elhorst JP (2003) Specification and estimation of spatial panel data models. Int Reg Sci Rev 26(3):244–268

    Article  Google Scholar 

  • Kapoor M, Kelejiam H, Prucha IR (2007) Panel data models with spatially correlated error components. J Econ 140:97–130

    Article  Google Scholar 

  • Pinkse J, Slade ME (2009) The future of spatial econometrics. In: 50th anniversaty symposium of the Journal of Regional Science held at the New York Federal Reserve

  • Brandy M, Irwin E (2011) Accounting for spatial effects in economic models of land use: recent developments and challenges ahead. Environ Res Econ 48(3):487–509

    Google Scholar 

  • Anselin L (1995) Local indicators of spatial association—lisa. Geogr Anal 27:93–115

    Article  Google Scholar 

  • Li H, Calder CA, Cressie NAC (2007) Beyond Moran’s I: testing for spatial dependence based on the spatial autoregressive model. Geogr Anal 39:357–375

    Article  Google Scholar 

  • Kawamura K, Mahajan S (2006) Hedonic analysis of impacts of traffic volumes on property values. Transp Res Rec J Transp Res Board 1924:69–75

    Article  Google Scholar 

  • Löchl M, Axhausen K (2010) Modeling hedonic residential rents for land use and transport simulation while considering spatial effects. J Transp Land Use 2(2):39–63

    Google Scholar 

  • Van Eggermond MBA, Lehner M, Earth A (2011) Modeling hedonic prices in Singapore applying spatial hedonic regression. In: FCL Conference, Singapore

  • Martinez LM, Viegas JM (2009) Effects of transportation accessibility on residential property values. Transp Res Rec J Transp Res Board 2115:127–137

    Article  Google Scholar 

  • Cohen J, Paul CM (2007) The impacts of transportation infrustructure on property values: a higher-order spatial econometrics approach. J Reg Sci 47(3):457–478

    Article  Google Scholar 

  • Weinberger RR (2001) Commercial rents and transportation improvements: the case of santa clara country’s light rail. Technical report, Lincoln Institute of Land Policy, Cambridge

  • Munoz-Raskin R (2010) Walking accessibility to bus rapid transit: does it affect property values? The case of bogota colombia. Transp Policy 17(2):72–84

    Article  Google Scholar 

  • Hellenic Statistical Authority (2011) Announcement of temporary results of census. Technical report, EL.STAT

  • Organization of Urban Transportation of Thessaloniki (2013) http://oasth.gr/organization/general_eng.php. Accessed 25 Mar 2013

  • Attiko Metro SA (2013) http://www.ametro.gr/page/default.asp?la=1&id=20. Accessed 25 Mar 2013

  • Roukouni A, Basbas S, Kokkalis A (2012) Impacts of a metro station to the land use and transport system: the thessaloniki metro case. Procedia Soc Behav Sci 48:1155–1163

    Article  Google Scholar 

  • Karanikolas N, Anastasiadou E (2012) The effect of location of metro stations on real estate values of commercial properties. a case study of Thessaloniki, Greece. J Econ Eng 3(1):4–11

    Google Scholar 

  • Xifilidou A, Karanikolas N, Spatalas S (2012) The effect of central metro stations on real estate values. J Land Use Mobil Environ 2:185–193

    Google Scholar 

  • Efthymiou D, Antoniou C (2013) How do transport infrastructure and policies affect house prices and rents? Evidence from Athens, Greece. Transp Res Part A Policy Pract 52:1–22

    Article  Google Scholar 

  • R Development Core Team (2011) R: a language and environment for statistical computing. R Foundation for Statistical Computing, Vienna, Austria. ISBN 3-900051-07-0

  • Duncan TL (2012) XML: tools for parsing and generating XML within R and S-Plus. R package version 3.9-4

  • Duncan TL (2012) RCurl: general network (HTTP/FTP/...) client interface for R. R package version 1.91-1

  • Box DR, Cox GEP (1946) An analysis of transformations. J R Stat Soc Ser B (Methodol) 26(2):211–252

    Google Scholar 

  • Farooq B, Miller EJ, Haider M (2010) Hedonic analysis of office space rent. Transp Res Rec J Transp Res Board 2174:118–127

    Article  Google Scholar 

  • Brennan TP, Cnnaday RE, Colwell PF (1984) Office rent in the Chicago CBD. AREUEA J 12(3):243–260

    Article  Google Scholar 

  • Anselin L, Lozano-Garcia N (2008) Errors in variables and spatial effects in hedonic house price models of ambient air quality. Emp Econ 34(1):5–34

    Article  Google Scholar 

  • Baltagi BH, Egger P, Pfaffermayr M (2008) Estimating regional trade agreement effects on FDI in an interdependent world. J Econom 145(1–2):194–208

    Article  Google Scholar 

  • DiPasquale D, Wheaton WC (1996) Urban economics and real estate markets. Prentice Hall, Englewood Cliffs

Download references

Acknowledgments

This research was partly funded through the SustainCity project, co-financed by the European Commission within the FP7 program. The first author is grateful for the scholarships awarded by (i) the Special Fund for Research Grants of NTUA for his PhD studies, and (ii) the Swiss Government for his visit at EPFL in Switzerland.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dimitrios Efthymiou.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Efthymiou, D., Antoniou, C. Measuring the effects of transportation infrastructure location on real estate prices and rents: investigating the current impact of a planned metro line. EURO J Transp Logist 3, 179–204 (2014). https://doi.org/10.1007/s13676-013-0030-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s13676-013-0030-4

Keywords

Navigation