Review Article
Year: 2018 | Month: January-March | Volume: 2 | Issue: 1 | Pages: 1-30
Proximity to Rail Transit Station and Abutting Real Estate Prices: Their Relationship in the Light of Previous Studies
Aliyu Ahmad Aliyu1, Musa Adamu Keffi2 and Dominion Agwela Anosike3
1Department of Estate Management and Valuation, Faculty of Environmental Technology,
Abubakar Tafawa Balewa University, Bauchi,
2Department of Estate Management, School of Environmental Studies, Nasarawa State Polytechnic, Lafia
3Department of Estate Management, School of Environmental Sciences, Federal Polytechnic, Bauchi
Corresponding Author: Aliyu Ahmad Aliyu
ABSTRACT
This article reviews recent and older studies on rail transit’s effect on real estate prices. The effect of rail transit on real property values has been explored from numerous stand points, including analyses of diverse types of systems (e.g., commuter, heavy, light and rapid rail), of residential in opposition to commercial influences, as well as studies that have attempted to separate and isolate both positive along with negative impacts. The wide-ranging approaches make it easier said than done to compare the outcomes of one study to another. Some of the conflicting findings over the years have frequently been due to contradictory methods of data analysis, data quality, in addition to geographical differences. All the same, it is apparent that, in most occasions, proximity to rail transit station is cherished by landed property owners. There is little evidence for the suggestion that nearness to rail really diminishes or reduces real property values. A large quantity of the empirical studies has measured the effects on residential accommodation prices after the municipal transit facility is in use and implicitly assumed uniform capitalization across boundaries. Nevertheless, due to dissimilarities on local community goods provision and residents’ uniqueness across jurisdictions, two alike housing units situated at the same distance to the closest metro station but in dissimilar local markets would not inevitably command the same level of capitalization. Twenty-eight out of the thirty-nine reviewed empirical studies considering heavy as well as light rail transit systems advocate a positive association between real property values and rail transit station proximity. Conversely, some of the reviewed previous studies were indifferent of the impact. In other part of the world, twelve out of fourty-three reviewed works, both heavy along with light rail transit station, advocate that there is no connection between real property values and rail transit station proximity. The general agreement amongst the past studies along with reports is that closeness to municipal transit does lead to higher housing values and rents in numerous cases. Further studies should essentially be undertaken following the opening and functioning of rail station in order to take into account the correct situation under those potential situation and therefore to be able to validate the general application of the obtainable results qualitatively as well as quantitatively.
Key words: Hedonic Price Model, Location Theory, Proximity Effect, Rail Transit Station and Real Estate Price.
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