A hedonic analysis of Finland's largest cities

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Volume Title

School of Business | Bachelor's thesis

Date

2017

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Mcode

Degree programme

Taloustiede

Language

en

Pages

21

Series

Abstract

The price of the dwelling is affected by its locational and structural characteristics which home buyers evaluate by personal preferences. This thesis uses data from six largest cities in Finland contributing with total 6538 observations. Using historical purchase data and a hedonic pricing model this bachelor thesis estimates values for different structural characteristics of dwellings. The aim of the study is to reveal how different structural characteristics are valued in different parts of Finland and create material for future discussion about Finnish real estate markets. First, I find that certain characteristics of the dwelling have value to the consumers. Second, I discovered that each of the six research cities has unique characteristics that affect to the action of consumers.

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Thesis advisor

Ilmakunnas, Pekka

Keywords

hedonic pricing model, Finnish housing markets, data-analysis, economics

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