Effects of rapid transit infrastructure on real estate value

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School of Business | Bachelor's thesis
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Date

2022

Major/Subject

Mcode

Degree programme

Bachelor’s programme in Economics

Language

en

Pages

27

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Abstract

I study the effects of rapid transit infrastructure on real estate prices in cities across the world through a review of relevant literature. I study the magnitude of these effects as well as the factors behind them. I find that the average price effect of proximity to a transit station is positive and approximately 5-8%. However, this finding is not universal in all cases and depends significantly on the context of the transit network and various other contributing factors. Much of the literature focuses on aggregate level effects of station proximity and does not seek to isolate the different components that contribute to the overall effect, which complicates the interpretation of the results. Nevertheless, transit accessibility is one of the most significant factors that influence the price effect of station proximity.

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Thesis advisor

Stryjan, Miri

Keywords

real estate, house prices, urban transportation, rapid transit

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