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Dynamics of Rental Prices and Land Value Relative to Changes in Transportation Infrastructure
Journal
Lecture Notes in Civil Engineering
ISSN
23662557
Date Issued
2022-01-01
Author(s)
Barpete, Karan
Jana, Arnab
Meakin, Karl
Abstract
In this paper, we assess the effects of multiple variables, including access to metro systems, on rent prices and land value. In addition, we examine the relationships between transit access, travel behavior, socioeconomic characteristics, and housing choices. Using publicly available housing price data along with survey data from 1000 middle income households within 2 km of either planned or operational Mumbai metro stations, the present research quantifies the interactions between new metro lines and travel behavior, housing choice, and socioeconomic characteristics. This paper contributes to an important area of research: understanding the effects that new transit lines have on property values and rent. First, we hypothesize that access to transportation infrastructure (i.e., access to an operational metro station) is one of multiple variables influencing land price. Other variables considered in the model are proximity to schools, colleges, hospitals, clinics, parks, market, and few other urban services). These variables are frequently used in the literature, and in this paper the dependent variable is change in rent between previous house and present house. In a different hedonic price model, the dependent variable is land sale price per square meter across 4 types of land-uses—Residential, Commercial (Office buildings), Commercial (Retail shopping), and Industrial land-use.
Volume
219
Subjects