Housing prices and points of interest in three Polish cities

Abstract

AbstractThis paper shows the usefulness of open source points-of-interest (POI) data for understanding the causes of volatility in residential property prices. Points of interest are unique locations or features cartographically mapped in space and explicitly connected to various aspects of human life. This point number, and density, primarily reflect a city’s spatial structure. They could therefore indicate a higher quality of life in a given urban zone, resulting in higher demand for housing in the area and, consequently, higher housing prices. This study was conducted in three Polish cities: Warsaw, Poznań and Olsztyn. Our research also attempted to establish which POI categories constitute stimulants and which are destimulants in the housing market. To determine the significance of POI in the price formation process, we used the quantile regression model and its spatial version, apart from classical regression models. The results of our research show the importance of POIs for the formation of housing prices. Individual POI categories are of minor importance, while the simultaneous presence of many different POIs definitely has a positive impact on housing prices.