Impact of the urban landscape on residential housing prices in Valencia, Spain

Abstract

In this paper, a hedonic model will be developed to analyse the characteristics that determine the price of a dwelling. On the one hand, these include physical features such as size, floor or age, and others such as common areas. On the other hand, there is the location, because the position of the building has to do with urban landscape and environmental attributes. This latter case is especially interesting because this area of the city has been developed in a period of no longer than fifteen years, since it has grown up around a recently completed architectural and socio-cultural complex that has become an emblematic landmark of the metropolitan area: the City of Arts and Sciences (Santiago Calatrava, Architect). It is located in the old riverbed, which is nowadays integrated within the urban planning of the city, and as well as its cultural, social and architectural value it is also important from an environmental point of view, since it is surrounded by green spaces, bodies of water and a number of other amenities that improve the quality of urban life for local citizens. Primary market research was conducted and then data were carefully checked and selected to obtain the most accurate information possible. The model shows which variables are significant to predict the sale price and it also reflects how important the location of the building is in the price of the property, which in this case refers to its proximity to the riverbed and its views.