The Impact of Rail Transport on Real Estate Prices: An Empirical Analysis of the Dutch Housing Market

Tinbergen Institute Discussion Paper No. TI 06-031/3

26 Pages Posted: 6 Apr 2006

See all articles by Ghebreegziabiher Debrezion

Ghebreegziabiher Debrezion

Tinbergen Institute

Eric A. J. H. Pels

Vrije Universiteit - Department of Spatial Economic

Piet Rietveld

VU University Amsterdam - Department of Spatial Economics (Deceased)

Date Written: March 2006

Abstract

A hedonic pricing model is estimated to analyse the impact of railways on house prices in terms of distance to railway station, frequency of railway services and distance to the railway line. Correcting for a wide range of other determinants of house prices we find that dwellings very close to a station are on average about 25% more expensive than dwellings at a distance of 15 kilometres or more. A doubling of frequency leads to an increase of house values of about 2.5%, ranging from 3.5% for houses close to the station to 1.3% for houses far away. Finally we find a negative effect of distance to railways, probably due to noise effects. Two railway station references were used in the analysis: the nearest and most frequently chosen station in the post code area. This distinction indicates that railway station accessibility is a more complex concept than one might think. It involves competition between railway stations.

Keywords: property value, railway station, accessibility, hedonic pricing method

JEL Classification: R3, R4

Suggested Citation

Debrezion, Ghebreegziabiher and Pels, Eric A.J.H. and Rietveld, Piet, The Impact of Rail Transport on Real Estate Prices: An Empirical Analysis of the Dutch Housing Market (March 2006). Tinbergen Institute Discussion Paper No. TI 06-031/3, Available at SSRN: https://ssrn.com/abstract=895270 or http://dx.doi.org/10.2139/ssrn.895270

Ghebreegziabiher Debrezion (Contact Author)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Eric A.J.H. Pels

Vrije Universiteit - Department of Spatial Economic ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31-20-4446049 (Phone)
+31-20-4446004 (Fax)

Piet Rietveld

VU University Amsterdam - Department of Spatial Economics (Deceased)

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 4446097 (Phone)
+31 20 4446004 (Fax)

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
1,118
Abstract Views
4,579
rank
26,695
PlumX Metrics