Koster, Jos (2022) Proximity to Water and Residential Property Values: Evidence From The Netherlands. Master thesis.
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Abstract
Water has aesthetic and recreational values, and health benefits, but can also bring a risk of flooding towards homeowners. This paper studies the effect of distance to water on residential property prices by using GIS measures in a pseudo-repeat sales model for over 185,000 transactions in 2019 in the Netherlands. When compared to properties nearby water (distance < 25m), there is a 1.91% discount in price for properties that have a 25-50m distance to nearest water. This discount can go up to -4.04% on average, for properties with 200-400m distance to nearest water. The robustness differentiated for type of property also remains stable. The size of the effect is sensitive to the type of water, but overall shows an increasing negative effect as distance increases. Concluding that properties nearby water sell at a premium relative to properties further away from water. As urbanization and climate change strengthen the need for water management and a maximization of benefits for society, the correct valuation of water is important for policy makers to make cost-benefit decisions on land use through spatial planning.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Daams, M.N. and Vlist, A.J. van der |
| Date Deposited: | 12 Sep 2022 10:55 |
| Last Modified: | 12 Sep 2022 10:55 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4043 |
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