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A sight for sore eyes: Assessing the value of view and land use in the housing market

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  • Baranzini, Andrea
  • Schaerer, Caroline

Abstract

We apply a hedonic model to the Geneva-Switzerland rental market to assess the value of view from dwellings and of land uses around buildings. Using a geographic information system, we calculate three-dimensional view variables, accessibility and land use variables. To our knowledge, this is the first paper to develop precise view measures at the dwelling level, considering surrounding land uses, in an urban context and with a large sample of 13,000 observations. The results show that view of various environmental amenities and its size has a significant impact on rents. The estimated rent premium for a dwelling located in a neighbourhood with an extended surface of water can be as high as 3%, and a view of water-covered area can raise rent up to 57%.

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  • Baranzini, Andrea & Schaerer, Caroline, 2011. "A sight for sore eyes: Assessing the value of view and land use in the housing market," Journal of Housing Economics, Elsevier, vol. 20(3), pages 191-199, September.
    • Handle: RePEc:eee:jhouse:v:20:y:2011:i:3:p:191-199
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    2. Margaret Walls & Carolyn Kousky & Ziyan Chu, 2015. "Is What You See What You Get? The Value of Natural Landscape Views," Land Economics, University of Wisconsin Press, vol. 91(1), pages 1-19.
    3. Hyejin Lee & Byoungkil Lee & Sangkyeong Lee, 2020. "The Unequal Impact of Natural Landscape Views on Housing Prices: Applying Visual Perception Model and Quantile Regression to Apartments in Seoul," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    4. Liv Osland & John Östh & Viggo Nordvik, 2022. "House price valuation of environmental amenities: An application of GIS‐derived data," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(4), pages 939-959, August.
    5. Schaeffer, Y. & Dissart, J.-C., 2018. "Natural and Environmental Amenities: A Review of Definitions, Measures and Issues," Ecological Economics, Elsevier, vol. 146(C), pages 475-496.
    6. Andrea Baranzini & Caroline Schaerer & José V. Ramirez & Philippe Thalmann, 2008. "Do Foreigners Pay Higher Rents for the Same Quality of Housing in Geneva and Zurich?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(IV), pages 703-730, December.
    7. Mitra, Suman K. & Saphores, Jean-Daniel M., 2016. "The value of transportation accessibility in a least developed country city – The case of Rajshahi City, Bangladesh," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 184-200.
    8. Ngawang Dendup & Kuenzang Tshering, 2018. "Demand for piped drinking water and a formal sewer system in Bhutan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 681-703, July.
    9. Pia Nilsson, 2011. "Cultural Landscape Characteristics and Heritage Values A Spatially Explicit Hedonic Approach," ERSA conference papers ersa10p397, European Regional Science Association.
    10. Hugo Castro Noblejas & Pierfrancesco De Paola & Jesús Vías Martínez, 2023. "Landscape Value in the Spanish Costa del Sol’s Real Estate Market: The Case of Marbella," Land, MDPI, vol. 12(5), pages 1-16, April.
    11. Jiacheng Jiao & John Rollo & Baibai Fu, 2021. "The Hidden Characteristics of Land-Use Mix Indices: An Overview and Validity Analysis Based on the Land Use in Melbourne, Australia," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    12. Jan Melichar & Pavel Rieger & Ondřej Vojáček & Karel Jedlička, 2009. "Measuring the Value of Urban Forest using," Regionální studia, Prague University of Economics and Business, vol. 2009(2), pages 13-20.
    13. Hajnal István, 2019. "Market value of the view restriction," Organization, Technology and Management in Construction, Sciendo, vol. 11(1), pages 1925-1932, February.
    14. Adam R. Swietek, 2023. "Automated Design Appraisal: Estimating Real Estate Price Growth and Value at Risk due to Local Development," Papers 2401.08645, arXiv.org.
    15. Shanaka Herath, 2021. "Elevating the Value of Urban Location: A Consumer Preference-Based Approach to Valuing Local Amenity Provision," Land, MDPI, vol. 10(11), pages 1-14, November.
    16. Erda Wang & Nannan Kang & Yang Yu, 2017. "Valuing Urban Landscape Using Subjective Well-Being Data: Empirical Evidence from Dalian, China," Sustainability, MDPI, vol. 10(1), pages 1-20, December.
    17. Matthew Gnagey & Therese Grijalva, 2018. "The impact of trails on property values: a spatial analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 73-97, January.
    18. Joséphine Leuba, 2019. "Natural amenities and the spatial distribution of Swiss income," IRENE Working Papers 19-04, IRENE Institute of Economic Research.
    19. Damrongsak Rinchumphu & Chris Eves & Connie Susilawati, 2013. "Brand Value of Property in Bangkok Metropolitan Region (BMR), Thailand," International Real Estate Review, Global Social Science Institute, vol. 16(3), pages 296-322.
    20. Hyunki Hong & Hoyong Jung & Duol Kim, 2024. "The Value of an Apartment with Sunlight and a View: A Quasi-Experimental Analysis," Korean Economic Review, Korean Economic Association, vol. 40, pages 177-194.
    21. Ryffel, Andrea Nathalie & Rid, Wolfgang & Grêt-Regamey, Adrienne, 2014. "Land use trade-offs for flood protection: A choice experiment with visualizations," Ecosystem Services, Elsevier, vol. 10(C), pages 111-123.

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