Proximity to Neighborhood Services and Property Values in Urban Area: An Evaluation through the Hedonic Pricing Model

Abstract

Neighborhood services, property attributes, and their associated amenities have positive impacts on land and property values. This impact is estimated by the hedonic pricing model, which is considered an effective method used in previous studies for such evaluations. The study uses Geographical Information Science by digitizing the point of interest in the study area for spatial modeling of data collection points and multi-linear regression as a statistical analysis of hedonic measurements. The hedonic measurements include the data of structural, locational, environmental, and community attributes of a property at a given time and space at a walkable distance from the neighborhood for measuring proximity. The results of the study are represented through the summary of the regression model, which expresses the impact of every individual variable on the entire value of the property, and the appropriateness of the results is shown by values R, R2, and adjusted R2. The result of the study concluded that property characteristics are varied from location to location, and that is why it is difficult to measure the exact market values, particularly in areas that lack urban planning and heterogeneous data. Research on such burning issues is essential for sustainable urban development.