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Residential Property Behavior Forecasting in the Metropolitan City of Milan: Socio-Economic Characteristics as Drivers of Residential Market Value Trends

Author

Listed:
  • Marzia Morena

    (Department of Architecture, Built Environment and Construction Engineering, Politecnico di Milano, Via Bonardi 9, 20133 Milan, Italy)

  • Genny Cia

    (Department of Architecture, Built Environment and Construction Engineering, Politecnico di Milano, Via Bonardi 9, 20133 Milan, Italy)

  • Liala Baiardi

    (Department of Architecture, Built Environment and Construction Engineering, Politecnico di Milano, Via Bonardi 9, 20133 Milan, Italy)

  • Juan Sebastián Rodríguez Rojas

    (Department of Architecture, Built Environment and Construction Engineering, Politecnico di Milano, Via Bonardi 9, 20133 Milan, Italy)

Abstract

The phenomenon of urbanization of cities has been the subject of numerous studies and evaluation protocols proposing to analyze the degree of economic and social sustainability of development projects. Through careful research and synthesis of the theoretical framework regarding residential properties’ performance measurement and forecasting, this paper goes deeper into the proposition of property development as an asset class that represents the biggest share of the Italian property market and yet is avoided by the big portfolios. The analysis model was applied to the city of Milan and its Metropolitan Area. The method is based on the development of correlation indices to evaluate different behaviors, through time and a Geographic Information System (GIS) based on the Hedonic Price Method (HPM). Results from a hedonic model estimated for several recent years suggest that, depending on the particular view, the relation between the rent/price performance and the different external and intrinsic variables can represent a useful parameter for evaluating the feasibility of different real estate investments.

Suggested Citation

  • Marzia Morena & Genny Cia & Liala Baiardi & Juan Sebastián Rodríguez Rojas, 2021. "Residential Property Behavior Forecasting in the Metropolitan City of Milan: Socio-Economic Characteristics as Drivers of Residential Market Value Trends," Sustainability, MDPI, vol. 13(7), pages 1-25, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3612-:d:523282
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    References listed on IDEAS

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    Cited by:

    1. David Consolazio & David Benassi & Antonio Giampiero Russo, 2023. "Ethnic residential segregation in the city of Milan at the interplay between social class, housing and labour market," Urban Studies, Urban Studies Journal Limited, vol. 60(10), pages 1853-1874, August.
    2. Sebastiano Carbonara & Marco Faustoferri & Davide Stefano, 2021. "Real Estate Values and Urban Quality: A Multiple Linear Regression Model for Defining an Urban Quality Index," Sustainability, MDPI, vol. 13(24), pages 1-17, December.
    3. Edi Santosa & Anas Dinurrohman Susila & Winarso Drajad Widodo & Nizar Nasrullah & Ismi Puji Ruwaida & Rismita Sari, 2021. "Exploring Fruit Tree Species as Multifunctional Greenery: A Case of Its Distribution in Indonesian Cities," Sustainability, MDPI, vol. 13(14), pages 1-23, July.

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