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Brownfield areas and housing value: Evidence from Milan

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  • Lucia Gibilaro
  • Gianluca Mattarocci

Abstract

The existence of brownfield areas inside a city has negative effects on the real estate market due to the decrease of the demand for real estate assets nearby for both the prices and rents.The impact could be different on the basis of the different type of real estate investment considered and normally the impact is expected to be higher for residential assets. The paper evaluates the economic effect of abandoned real estate in the city of Milan for the time period 1993-2016 and shows that the city is characterised by a concentration of abandoned/dismissed assets in some city districts. Using standard hedonic models, the paper shows that the existence of brownfield areas nearby a real estate asset affects negatively its price and the negative contribution on price could be even higher than some district/building features.

Suggested Citation

  • Lucia Gibilaro & Gianluca Mattarocci, 2018. "Brownfield areas and housing value: Evidence from Milan," ERES eres2018_271, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2018_271
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    References listed on IDEAS

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    6. Michael Greenberg & Karen Lowrie & Henry Mayer & K. Tyler Miller & Laura Solitare, 2001. "Brownfield redevelopment as a smart growth option in the United States," Environment Systems and Decisions, Springer, vol. 21(2), pages 129-143, June.
    7. White, Michelle J., 1986. "Property taxes and urban housing abandonment," Journal of Urban Economics, Elsevier, vol. 20(3), pages 312-330, November.
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    More about this item

    Keywords

    Brownfield areas; Hedonic price model; Housing Price;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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