The study of effects of investment in urban development plans on real estate prices in Tehran

Abstract

The issue of housing prices and its sharp rise has always been one of the most challenging issues for households and the government. On the other hand, municipalities, especially large municipalities, consider urban development as one of their main missions. What effect this investment in infrastructure and development projects will have on housing prices is important not only at the local level but also at the national level. The effect of investments in urban development plans on housing prices in Tehran is the subject of this study. The main purpose of this study is to investigate the effect of investment in infrastructure and urban services on increasing housing prices in 22 districts of Tehran. In other words, this study seeks to answer the scientific question of how much the difference in changes in relative housing prices in the 22 districts of Tehran is affected by this factor. Method used in the research The hedonic method and the variables used are three groups of variables that affect the price of housing in the city, which include physical or intrinsic variables of housing, environmental variables of housing and space variable. Due to the existence of spatial self-correlation and the results of Moran 1 test, the hedonic model has been estimated using the space factor. The results show that the effect of environmental variables is more than intrinsic variables and the variable of the share of the road network of the total area of ​​neighborhoods has the greatest impact on the price of residential units in Tehran.