Journal of Applied Economic Research
ISSN 2712-7435
Assessment of the Impact of Public Transport Accessibility on the Value of Urban Residential Real Estate
E.V. Leontev, I.A. Mayburov
Ural Federal University named after the First President of Russia B.N. Yeltsin, Ekaterinburg, Russia
Abstract
Currently, analysis of the impact of public transport on real estate and its value is widely demanded in the world. The analysis is used to plan investments in public transport and the efficiency of public transport networks. In Russia, such studies have been carried out mainly in the framework of the evaluation of specific properties, which does not make it possible to macroanalyze the urban public transport environment and compare them with each other. The aim of the work is to study the influence of the proximity of public transport infrastructure on the cost of urban residential real estate, to determine the average value of such an impact for Yekaterinburg. In this study, we intend to confirm the hypothesis about different influence of the proximity of a public transport stop on the cost of housing, taking into account the different set of attributes that characterize it. The calculations were carried out using the analysis of the supply of the real estate market, carried out with the method of multiple regression, simultaneously with the geo-positioning of real estate units on the map to calculate the distance of each object to the nearest public transport stop of a certain type. Based on the results of the calculations, a global tendency towards a higher cost of the properties that are close to tram stops or metro stations in Yekaterinburg is confirmed, and the share of the value of a property generated by the proximity of a public transport stop was calculated. The authors confirmed the hypothesis about varying sensitivity of residential real estate to the proximity of public transport stops. Newer homes have lower sensitivity to proximity to public transport stops than older ones. The obtained empirical evidence of the influence of public transport infrastructure on the value of residential real estate demonstrates the most significant contribution to the value of a real estate object, the proximity to the metro station in Yekaterinburg (3.0 – 12.0%). The tram infrastructure showed a slightly lower impact on the total cost of the facility (3.2 – 8.8%). The revealed interdependencies make it possible to apply the obtained data to forecasting the growth of the taxable base for property tax during the construction of new transport lines.
Keywords
public transport; hedonistic model; real estate value; subway; tram; multiple regression
JEL classification
R42, R31References
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Acknowledgements
The authors are grateful to Associate Professor Julia Leontyeva for valuable comments and recommendations in the preparation of this article.
About Authors
Leontev Evgenii Vladimirovich
Post-graduate Student, Department of Financial and Tax Management, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); ORCID 0000-0002-7531-8078; e-mail: Pasparto@yandex.ru.
Mayburov Igor Anatolievich
Doctor of Economics, Professor, Head of the Department of Financial and Tax Management, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); ORCID 0000-0001-8791-665X; e-mail: mayburov.home@gmail.com.
For citation
Leontev E.V., Mayburov I.A. Assessment of the Impact of Public Transport Accessibility on the Value of Urban Residential Real Estate. Journal of Applied Economic Research, 2021, Vol. 20, No. 1, 62-83. DOI: 10.15826/vestnik.2021.20.1.003
Article info
Received November 3, 2020; Revised January 20, 2021; Accepted February 11, 2021
DOI: http://dx.doi.org/10.15826/vestnik.2021.20.1.003
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