Public transport proximity impact on property value. Evidences from Bucharest residential market.

Abstract

Transport plays a crucial role in urban development by providing access for people to education, markets, employment, recreation, health care and other key services. Cities which prioritize public transport and non-motorized modes are considered at the top of surveys measuring urban quality of life. Concerns over the quality of life have spread to the growing use of active transportation modes, and as so, proximity to the public transportation system is highly valued. The relationship between public transport accessibility and residential land value is the subject of many recent researches. A house located near public transports will tend to be sold at higher prices. This is due to the convenience that public transportation brings to its influence area, enabling quick access to the network and reduced travel times. However, some studies have found that this proximity can induce adverse effects on property values. The main concern of this paper is to address the importance of a public transport subway system in urban areas, and to analyse the effect of housing distance to stations has in real estate prices. A geocoded database integrated in a geographical information system was used, containing information on housing unit’s sales from Bucharest, Romania, between 2013 and 2017. This system allowed analysing and exploring all data characteristics.