Impact of new motorway on housing prices in rural North-East Slovenia

Paliska, Dejan (author), Drobne, Samo (author)

literature generally agrees that improved accessibility has a positive effect on housing values. The motorway constructions in north-eastern Slovenia, completed between 2002 and 2018, significantly improved the acces-sibility of less developed areas. In this article, we examine how the new motorway has affected the housing values in the mostly rural north-eastern part of Slovenia. We analysed the distance decay effect of amenities and disamenities of motorway links and ramps as well as bus stops, train stations, and railway links on housing prices. In addition to the transport infrastructure variables, we analysed numerous other structural and en-vironmental variables. We estimated three different spatial hedonic regression models: the spatial autoregression model, the spatial error model, and the spatial autocorrelation model. The results indicate that none of proximities to the bus stop, train station, or motorway link have had a significant effect on housing value. However, the rail track proximity exhibited a significant negative association with price. Furthermore, the effect of distance to the nearest motorway ramp on housing value is significant: it is stronger for closer distances (i.e. starting from 500 m) and decreases up to 6 km, while the effect of distances below 500 m is insignificant. Our results also show that bigger dwellings, more rooms, and the presence of a balcony, elevator, central auto heating system, new installation, and air conditioning as well as an apartment in a single house, are associated with a higher housing price. On the contrary, selling the dwellings together with a parking place and basement reduced the average price of the housing property. Comparing our results to the literature, we proved our hypothesis that the negative effect of a motorway is less pronounced in rural areas compared to urban areas and that the positive effect of accessibility is stronger in rural areas and extends over a wider geographical area

• Language: English
• Keywords: geodesy, spatial hedonic regression, housing price, motorway, rural area, Slovenia
• Work type: Scientific work
• Typology: 1.01 - Original Scientific Article
• Organization: FGG - Faculty of Civil and Geodetic Engineering
• Publication status: Published
• Year: 2020
• Number of pages: Str. 1-14
• Numbering: Letn. 88, št. okt./102831
• PID: 20.500.12556/RUL-121004
• UDC: 528
• ISSN on article: 0966-6923
• DOI: 10.1016/j.jtrangeo.2020.102831
• COBISS.SI-ID: 29051139
• Publication date in RUL: 28.09.2020

Record is a part of a journal

• Title: Journal of transport geography
• Shortened title: J. transp. geogr.
• Publisher: Butterworth-Heinemann
• ISSN: 0966-6923
• COBISS.SI-ID: 378210

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.
• Licensing start date: 28.09.2020

Secondary language

• Language: Slovenian
• Keywords: geodezija, prostorska henonska regresija, cena stanovanj, avtocesta, podeželsko območje, Slovenija

Projects

• Funder: ARRS - Slovenian Research Agency
• Project number: P2-0406
• Name: Opazovanje Zemlje in geoinformatika