Abstract
The article examines the relationship between property value and level of conservation of public urban space. While many studies have examined the effect of proximity of open space, parks, and trees on property value, there has been few examination of how projects of urban revitalization and ordinary and extraordinary maintenances of public spaces can influence property values. While intuition can suggest that a low level of quality and maintenance of a public space can negatively affect property value, even if the standard requirement of public spaces and services are meet, this yet to be empirically proven.We proposes the application of a new econometric models for quantitative analysis of the characteristics of real estate property (Generalized Additive Model), to assess the impact of maintenance condition on property values, due to the better prevision that these functions can obtain in a real estate market context.The control of the formal and logical adequacy of the proposed theoretical model is referred to the case study under analysis, in the city of Naples. The results obtained show that a well preserved urban environment influences property price by approximately 6%. The experimental test of the model has provided results that, by reason of their formal consistency with the results obtained in other contexts, can be considered representative of the effectiveness of the methodology proposed.
Highlights
As is known, many internal and external factors affect the property value, i.e. housing characteristics, neighborhood characteristics and the quality of the environment.Looking at the external factors, many studies measure the impact that the “presence” or “proximity” of urban standard and infrastructures, have on property value, whereas a few address the issue of how urban maintenance condition and in general “urban quality,” can influence property values.The concept of “urban quality” is really a complex one and has taken on different meanings over time and across different contexts [1]
It seems appropriate to measure in economic terms the benefits that society receives from living in an urban environment where a good level of “urban quality” is guaranteed, against the costs that the government must support in order to provide the required performance
It’s to be highlighted, as in the past, that urban transformation investments aimed at improving physical, functional and environmental sustainability of the urban environment, have been a location advantage reflected in an increase of property value, but not within financial public administrations
Summary
Many internal and external factors affect the property value, i.e. housing characteristics (e.g. number of rooms and quality of accommodation), neighborhood characteristics (e.g. level and quality of social infrastructure, housing density, and presence of other facilities) and the quality of the environment (air pollution, noise level, etc.). It seems appropriate to measure in economic terms the benefits that society receives from living in an urban environment where a good level of “urban quality” is guaranteed, against the costs that the government must support in order to provide the required performance This is especially true at a time of shortage of public funds, in which the government asking for “help” to individuals in the management of public goods [26]. It’s to be highlighted, as in the past, that urban transformation investments aimed at improving physical, functional and environmental sustainability of the urban environment, have been a location advantage reflected in an increase of property value, but not within financial public administrations At this end, we propose a pluri-parametric model to assess how the level of conservation and maintenance of urban environment can influence property values. In the paragraph the model proposed will be presented and the results discussed in the conclusion
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