Analysis of the Location Factors Affecting the Price of Tourist Houses: The Role of Accessibility to Public Transport Stations in Madrid

Abstract

The location of tourist properties is a fundamental aspect in the determination of price, but in cities with dense and efficient public transport systems, the location being in the periphery can offer alternative advantages to central locations (such as better accessibility by private vehicles). This study analyses how the price of tourist housing is influenced by the characteristics of the accommodation itself and its location, using a hedonic pricing regression model estimated by ordinary least squares (OLS) in two periods of time: the high season (October 2022) and the low season (February 2023). The obtained results suggest that the characteristics of the properties, the local environment and the elements in the area influence the price of tourist accommodation. Similarly, the proximity to public transport stations and stops has a relevant influence on the choice of tourist properties. This latter factor is highly important for designing public policies that favour a denser public transport network in peripheral areas of the city. This would increase the number of tourist properties in these areas further away from the centre and, therefore, the number of reservations. In turn, the income of these more vulnerable areas would improve together with the social cohesion of the municipality.