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Points of Interest and Housing Prices

Author

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  • Cellmer Radosław

    (Department of Spatial Analysis and Real Estate Market, Institute of Spatial Management and Geography, University of Warmia and Mazury in Olsztyn, ul. Oczapowskiego 2,10-719 Olsztyn, Poland)

Abstract

Points of Interest (POI) are an inherent element of the urban landscape, and their number and density reflect, among other things, the degree of urbanization and the city’s spatial structure. The very presence of POI in the closest vicinity of a residential property may indirectly or directly affect housing value. This paper aims to demonstrate the usefulness of POI density information of different categories in assessing the quality of a property’s immediate surroundings. While the mere presence of POIs in the nearest neighborhood may affect real estate prices, the influence of specific categories may not necessarily be positive. Therefore, the study attempted to classify POIs and determine their importance in the price formation process using spatial regression models. The results indicate that a high density of POIs in the immediate area is a stimulant for housing prices. The detailed analysis indicated that only some POI categories might be related to transaction prices, while in certain situations, some POI categories may negatively impact prices.

Suggested Citation

  • Cellmer Radosław, 2023. "Points of Interest and Housing Prices," Real Estate Management and Valuation, Sciendo, vol. 31(1), pages 69-77, March.
    • Handle: RePEc:vrs:remava:v:31:y:2023:i:1:p:69-77:n:4
    DOI: 10.2478/remav-2023-0007
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    References listed on IDEAS

    as
    1. Kiel, Katherine A. & Zabel, Jeffrey E., 2008. "Location, location, location: The 3L Approach to house price determination," Journal of Housing Economics, Elsevier, vol. 17(2), pages 175-190, June.
    2. Stephen Malpezzi, "undated". "Hedonic Pricing Models: A Selective and Applied Review," Wisconsin-Madison CULER working papers 02-05, University of Wisconsin Center for Urban Land Economic Research.
    3. Liao, Wen-Chi & Wang, Xizhu, 2012. "Hedonic house prices and spatial quantile regression," Journal of Housing Economics, Elsevier, vol. 21(1), pages 16-27.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    points of interest; housing market; spatial modelling;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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