Rostropowicz, Maciej (2021) Impact Of New Metro Line On Office Property Values in Warsaw: A Quantitative Approach. Master thesis.
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Abstract
Metro construction has reshaped Warsaw and the impact on all real estate sectors has been considerable. In the west of the city a whole new office district emerged, while many other areas in the city center significantly improved its accessibility. In the empirical literature the effect of underground proximity on real estate prices is ambiguous, however according to the theoretical framework a positive effect of the vicinity should be present due to increase in accessibility which entails growth of attractivity of office properties. The dataset for the study comes from Polish branch of a global real estate consulting company and is of special interests due to scarceity of studies performed in the local context of Central and Eastern Europe. This study uses hedonic model and difference-in-differences approach to find that headline office rents has been significantly, positively impacted by metro construction, even before the construction was finished. The model controls for number of lease and properties attributes (such as building size, class and age) and for time and neighborhood fixed effects. The spatiotemporal effects are shown as the research investigates both impact of distance to a metro station and anticipation effect in time. The spatial effect identified in the study is relatively limited, as positive effect of metro line construction after the end of the construction disappears at 275 m from the nearest metro station, however the effect varies over time and anticipation effect is identified. The results may be of interests to developers, investors and policy makers.
| Item Type: | Thesis (Master) |
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| Degree programme: | Real Estate Studies |
| Supervisor: | Liu, X. and Daams, M.N. |
| Date Deposited: | 03 Mar 2021 10:46 |
| Last Modified: | 03 Mar 2021 10:46 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/3446 |
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