In recent decades there has been a substantial increase in the urbanized area in all developed Countries. Land use choices can have significant impacts in terms of changes in property values. Land uses, in fact, help to define the locational characteristics that - along with the sociological, microeconomic and macroeconomic variables - lead to the formation of the property values. In the present paper an analysis of functional correlations of property prices with the main locational and socio-economic variables, that generally contribute to define the market value of a property, has been developed. Locational characteristics are represented by the surfaces of soil used for the main functions, borrowing the logic of the system of classification of CORINE Land Cover defined by the European Commission. The analysis has been contextualized to the 258 municipalities of the Region of Puglia (Italy), and has been referred to two different moments, i.e. the year 2006 and the year 2011, and to two different market segments, that are residential and retail segments. The functional relationships between property prices and the explanatory variables, estimated through a software that implements a genetic algorithm, are particularly interesting. The quantitative analysis has allowed then to explain the percentage weight of each variable in the formation of property values. The results highlight the need for constant monitoring of changes in land use, not only for environmental reasons, but also to determine the variations in household wealth in terms of value of its real estate asset. Finally, the methodology outlined is a valuable reference for the definition of models aimed at supporting, in a more rational and convenient way, public planning decisions and private investment choices.
|Titolo:||Land use, economic welfare and property values. An analysis of the interdependencies of the real estate market with zonal and socio-economic variables in the municipalities of the Region of Puglia (Italy)|
|Data di pubblicazione:||2015|
|Digital Object Identifier (DOI):||10.4018/IJAEIS.2015100102|
|Appare nelle tipologie:||1.1 Articolo in rivista|